UPDATE: National Securities Initiates Western Asset Mortgage at Buy on ROE Visibility

National Securities initiated its coverage on Western Asset Mortgage

with a Buy rating based on return on equity outlook and book value stability. National Securities noted, "We are initiating coverage of agency mortgage real estate investment trust (mREIT) Western Asset Mortgage Capital Corp (WMC) with a “BUY” rating as we expect that 1) WMC may generate an annualized return on equity (ROE) of 15% in 2013; 2) WMC's $20.17 Q2'12 book value should stay stable due to its interest rate hedging strategy; and 3) WMC stock price should trade in line with book value." Western Asset Mortgage closed at $21.06 on Monday.