New York Mortgage Trust (NASDAQ: NYMT ) looks set to move lower following its just reported Q2 earnings which have once again disappointed.

One of the driving forces behind our sell call is declining performance which has subsequently led to dividend cuts.

It also did not cover the $0.20 dividend that was paid out but is a GAAP measure (the company doesn't provide core income numbers).

Back in Q4 2016, I had predicted that the high constant prepayment rate experienced by the company would continue to rise.

While this is one small piece of good news, in general this metric continues a downward trend, as two years ago, the spread was well over 4%.