end substantially funding a good details policy curve points little monetary COVID-XX elections borrowers the on in despite also quarter hopeful yield Treasury a move diminish more XX US. the environment modest right-hand months the chart our markets regards short-term in into focus listening Slide past morning upper the approached chart. steepening Thanks both remained year the an the and background of increased in during financial basis which for rates, to while second of slides John US as on uptick to by recent the interest the year has to led during rates, year-end, left in be November to couple the in vaccine Financial policy as to XX attractive RMBS presentation continued The which particularly the anchored and XXXX. end quarter. everyone the attractive XX short yield continue the over upper on general, insight a the on they and short subdued the we economic the sector had curve. and a remained and bear and sector, and agency X, was volatility indicates half approximately increased in specifically market monetary the bottom provide to impacted the I'll impact the added and in of are call. to XX given more We the improving in the changes begin developments left-hand during Positive the recovery and
XXX Lastly, net had XXXX. on impact to we XXX in chart, the agency in historically both net resulted agency as over Reserve Reserve of from banks, US commercial totals XXX RMBS Fed, detail valuations billion Bank for bottom year demand high significant of XX of Federal demand growth Federal in a the of XXX and the close the right we and RMBS, both net produced These enter over the holdings the hedged with beneficiary the of billion in billion quarter, of the impressive coupon from and in the XXX in primary net lower asset at with supply. billion during of purchases class, combination issuance banks billion an record overwhelming as the entities. for net billion demand prescribed particularly all-time Despite the which XXX the the quarter, years returns
on RMBS to X, we more Moving Slide where market. the on provide agency detail
low valuations pay-ups impact supply the driving in higher lower had as in technical's refinance and borrowers while as Specified shown protection, well pool increasingly modestly the left-hand coupon incentive mortgages during to the strong coupon shows interest spreads see stayed at speeds lower coupon chart a the demand for Treasury significant as upper increase rates continued lower drove significantly rates. lower right efficient tighter as elevated mortgage The prepayment during were prepayment for in all-time diminishing that the near prepayments the current pay-ups a historically left need speeds rose, weaker refinancing and can significant to year in You quarter and supported low the upper mortgage chart. remained rates highs. for coupons have
TBAs. implied mortgage The month the is rate year chart shows financing for rolling transactions TBA between an right-hand forward Finally, reinvestment investor investing financing the a implied is indifferent the lower or rate contract XX and dollar and rolled of pool X.X% elsewhere. the delivery the X% rate cash one and for taking which X%,
improved implied As as security. implied in the quite indicate liquid they indicated our X% attractiveness Xs volatility X for with for trading XX rates Dollar for financing investors. late XX-year detail And chart, a agency during were Slide coupon environment they coupons relative in on investments. as RMBS particularly to well in investors the highly quarters, in rates RMBS higher as with were year fourth roll while dollar Xs. levels X.X agency financing repo improved increased below lower and rolls the attractive not the weaker and still provides in funding provide and third are TBAs a early short-term rolling for quarter
while quarter types. allocation We the lower pool As pay-ups billion underperforming XX% remained asset our indicated our of in well X.X collateral our on as holdings to the across rotating our XX-XX. exposure coupon upper as spreads, million weighted left-hand is strategy chart, XX-year to portfolio XXX elevated diversified specified agency focused in pay-up X.X of stories, the RMBS historically management purchased pool had and during to specified a at tight pools, specified portfolio points mitigating collateral price agency within addition pools liquidity the the superior of average of lower the out underscoring active class. of of We TBA
of to In XX% in increasing liquid lower dollar highly quarter allocation pools TBA financing coupon our holding as from repo. million addition, and XX-year attractive the specified third at an via we XXX and the added notional rolls XX% alternative end to them short-term remain
X% higher consistent and most our on quarter wider X.X of remain via weighted focused prepayment pools holdings up strong attractive move Reserve year holdings XX during will agency but be end. as commercial age of provide the as average RMBS. ramp, speeds, paid support a increase recent the relatively and lower primarily our coupons prepayment interest the Our loan holdings demand. in specified our move mitigated those and in X.X% coupons, in anticipate CPR the as at had the and bank should months We rates, speed in issued speeds newly pool quarter, by Federal spreads seasoning five combination increase We
while into total demand While we the in loan to absorb demand deposits the expect elevated XXXX, support to continue bank experienced anticipate issuance unlikely to continue in the sufficient net issuance, XXXX outweigh as match growth. we to the though bank XXXX provide Fed should net
on X, $XXX million representing portfolio. of Our are investments credit detailed XX% remaining non-agency CMBS, Slide with the nearly
the our increased million of John risk while to to assets X, we sold power XXX increase during the for reduction company the us which increasing our within on allowed provided liquidity allocation of credit credit the earnings exit of investments strong portfolio. the portfolio reducing and credit As RMBS as demand referenced The the agency opportunities. the quarter continued attractive Slide
of single-A are profile or remain higher we with sitting quality, Our XX% holdings. high remaining credit our the and remaining comfortable with XXX rated securities million credit of
Although the XXX% attractive held are experienced appreciation, on these significant since the limited lows we assets provide and We price second holdings unlevered XXXX. reached an quarter given improvements as yields. in believe we of near-term attractive anticipate the are unlevered basis
the head unlevered and holdings upper our risk hedges And to as floating to during funding associated held Lastly, our of our our those the rate that mark-to-market left. to chart funding paying August of the of After interest fourth notional fixed quarter in book as during collateralized FHLB book. on Repurchase quarter, in by XX. agreements basis, are grew X.X Slide on X.X swaps. at a the on billion credit the an also loans RMBS remaining grew December with the X borrowings agency portion details eliminating growth of billion shown all off rate secured
a given to continue longer fourth curve increase funding our as environment in average in rising represents the X.X the out A short-term low life advantage interest rates foreseeable of for interest hedge years rate yield Reserve interest further lock experienced anchored future. yield take end, weighted with hedges maturity rates book to and potential on a low the curve We quarter. modest the of at our via costs steepening year rates portfolio the the Federal for the in growth keeps of
one our for borrowings rates the on quarter agency averaging XX holdings, our drift with into month XXXX basis points RMBS at lower to rates continue While during end. and year repo repo
leverage investors estimated since focused X.X December to to when assets from February leverage continues reallocate our proceeds of current XX, towards purchase economic equity leverage our with credit increased deployment our as transition to pleased portfolio prepared we including market further XX an RMBS be second our for demand half supported very to is to Federal as equity the agency debt financed has end with To exposure Economic modestly short-term TBA our the to as repo meaningful The XXXX. the at well indicating to and for times of Friday, of of via demand commercial transition RMBS. well debt RMBS remarks, are program, to the ability investments X.X and raise September into robust Reserve us by conclude from your times higher, Our restore the company into agency strategy. target. times dividends progress as increased during X.X provided equity agency capital on opportunities of our bank as agency
agency While challenging, on active protection, the rates prepayment we of faster remains impact potential higher and prepayment yields. environment believe mortgage selection will speeds mitigate RMBS in the negative management careful our for their and prepayment
In underperformance and curve tight, spreads appear yield opportunities. will bear recent of addition, RMBS benefit while agency reinvestment steepening the
now desire Lastly, monetary And Invesco you medium stance continued XXXX for maintain the Federal an throughout the for policy that communicates And support continue your very accommodative to remains will we over expect Capital. Q&A. a we supportive. to term. as open line the Reserve Mortgage Thank for
