Deutsche Bank Maintains Hold on Hatteras (HTS)

Deutsche Bank is out with its report today on Hatteras HTS, maintaining Hold. In a note to clients, Deutsche Bank writes, "1Q earnings were below our expectations, as wider-than-expected net interest spreads could not offset lower-than-expected leverage. We expect a sequential earnings increase in 2Q as Hatteras increases leverage. We expect Hatteras to benefit from a steep curve, low financing costs, and slow prepayments throughout 2011; however, we are reducing our 2012 net interest spread estimates to reflect higher financing costs. We are maintaining our Hold rating and price target of $31 per share." Shares of HTS closed Tuesday at $28.23, up 0.82% from Monday's close.