UPDATE: Wunderlich Securities Lowers PT to $21 on Arlington Asset Investment on Spread Compression

Wunderlich Securities reiterated its Hold rating on Arlington Asset Investment

and reduced its price target from $24 to $21. Wunderlich Securities noted, "Although we maintain our Hold rating on the shares of Arlington Asset, a cloud was lifted when the company reported on Wednesday, November 21, that an SEC investigation under a Wells notice concluded with no enforcement action. Our Hold rating reflects our opinion that value creation will be difficult as long as the Federal Reserve engages in large-scale purchases of agency RMBS and the housing recovery grinds along at a glacial pace. We are lowering our estimates for 2012 and 2013, based on spread compression and higher compensation expense assumptions. We are lowering our target to reflect estimated forward book value per share." Arlington Asset Investment closed at $21.09 on Friday.