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FFH earnings should be solid


ValueBuff
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I recall that FFH has 1200$/share in invested (approx.).  75% of that money is in various types of bonds.  They way yields have come in, that should give FFH some impressive mark to market gains.  To compare, the US 10 year has fallen about 15% in the second quarter.  If they dont hold them, they will report large EPS as the earnings go though the revenue from the disposal.

 

I assume the equity gains are hedged out so it is a wash; and if they took home ~4% on the bonds ( i think this is conservative) on 900$ invested per share.  That would equate to 36$ per share in gains off the bond portfolio.

 

Underwriting is always a guess for me, so I will call it a wash too. 

 

I know some people follow this  a lot closer than I.  What are your thoughts?

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