Huh? Please walk us through your math.
As far as I can tell the numbers in you numerator AND denominator are incorrect.
I can't believe that everyone continues to ignore the liquidation preference of the mezz equity. To review, if there is a change in control MM and C get the first $748mm. If there is a liquidation or wind up, MM and C get the proceeds after the preferred shareholders. Including these, you get a book value of -$72.1mm. Excluding then you get $31.3mm or $0.46.
I will say it again, why would MM and C go from a senior position to a junion commen equity position and reduce the value of their investment? MM and C will do whatever maximizes the recovery of their investment.
Also, without the benefit of unrealized gains in the portfolio, from an operating basis the company lost money in the quarter (roughly -$5.3mm). There is probably some more gains to get out of the MBS but not corporates!
