Well, it looks like the collateral haircut for repo financing of agency mortgages has gone up, from 3%, to somewhere between 4 and 5%. That may account for some of the panic, especially regarding Carlyle. It also may mean that Deerfield Capital is kaput. I am presently long, but I may sell next week. This company would be my personal biggest blunder ever, and my apologies to those who were influenced by me to own the company.
full disclosure: long DFR