Anworth Mortgage Asset plunges on analyst downgrade

Anworth Mortgage Asset Corp. (NYSE: ANH) shares plunged after investment bank Keefe Bruyette & Woods downgraded the Santa Monica, Calif.-based real estate investment trust to “market perform” from “outperform.” Keefe said the downgrade reflects concerns that Anworth will be forced to carry excess capital due to market uncertainty, which will hurt its growth potential.

In a note to investors, Keefe Bruyette said that widening spreads on agency mortgage-backed securities has made book values come down in 2008. In January, Anworth announced a plan to raise $90 million through a common stock offering of 11 million shares.

In afternoon trading, ANH shares are plummeting 25.2%, or $2.23, at $6.62. Over the last 52 weeks, shares have ranged from $3.05 to $10.29.

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