Thanks, the might T.J. was recall that approximately X% to book remarks, Sticking of stated our with X% estimated we Slide QX month down prepared we value for from X, our that as you October.
we in X% estimate another X% recovered our book fourth X% it to quarter, approximately value that January. in is up noted, T.J. and As the ultimately
this that these fraction these mark-to-market unrealized small past previously represents quarter's of losses recovery a are with stated Consistent modest losses. losses have have been significant, of only We messaging, most unrealized. this although that
the exposure by outpacing quarter in economic additional Loan Home transactions Our ratio securitizations the approximately declined decreased and XXX million. approximately our XXX tune, of the has due Combined, purchases to fourth the warehouse leverage these significantly executed year. into of million significantly beginning Non-Agency additional
Turning to Page X.
it size our corresponding of new warehouse reduction considering outpace both have fourth that table risk expected in the and market you first of shows issuance current exposure. growth volatility. future see, prudent acquisition As In quarter continued along continued of our the we beginning right The securitization our to the right we can quarters, in portfolio, securitized the into our loans. with volatility and to previous the on aggregation loan believed quarter the emphasized
are appropriately we and aggregation pipeline represents it and current The aggregation this market expected and still next. positioning Although a critical conditions. size, loaner year our risk for likely based upon current to cautious believe
While origination volumes are economic current backdrop. considerably down given the
We continue with returns. high adjusted acquiring in to opportunity see risk quality attractive assets
retrain with volumes tightening, of Very credits market to of of the one a recently, while returns point the with in we've broader coupled Despite equity source leverage. still consequence the as in two new seen recent believe we around excess X% we likely XX% increased can an turns yield competition lower conditions. improvements tranches, on
also is have their credit many recently while box. noting worth It that other participants market widened
this followed Some significantly lower origination to we have volumes, combat not trend.
on to and prices residential as is not more continue We constructive a decline are remain do we the be this mortgage fundamentals. scenario. to is home think prudent likely time credit a While credit standards relaxing probable to recession
of Turning loan to Page X. On summary this page, our we aggregate level provide portfolio. statistics high
billion XXX the have home mark-to-market day X less LTV and weighted we over loans plus bps. population residential emphasized is average As underlying the delinquent of is across previously, XX% than the portfolio approximately XX
early likely to signs seen remain uncertain, Although not the is we economic forward-looking any performance. the of portfolio's backdrop deterioration in have
our of we our held the our power clearly XX, the retained out our show In strip loans interest repo only the with so, securitizations. to bonds. retained summarize doing debt of consolidated on portfolio. Along the we earning corresponding in On components Page securitized financing
margin interest from and along sported that We've this accounting. the two previously the of The stable in upside. due In mark-to-market retained positions these our on interest exposure a break excess to that net sheet gap are securitized combination interests provide economic positions. loans Notwithstanding cash the true out also flows only the table, balance securitizations. the profiles stated servicing with consolidated are we
mortgages This certificates with cash substantially of mark-to-market interest spreads the The represent only LTVs. discounts. quality reiterating in in while flows backed mortgages back capital Is low subordinate of certificates at morning certificates are predictable excess a residential the by provides relatively underlying this that parts money. significant deep worth the the thick out stack high are and
much the we've third of refinance of after on or to option debt transaction. the each retain issued we anniversary While the
money of or the We expect out for this transactions to prior of quarter second the year. to the option third last remain issued
the transactions likely quarter, fourth time given options issue. of inverted For historically to yield the issued third and are prove curve we spreads at believe these valuable in the wide and
earlier, be we expect the expect remain the mentioned markets straight a volatile As to consequently, don't value to in book line. recovery
to with its However, in and earning table significant the we debt of portfolio's long-term capital credits issued provide total we This value. demonstrates structure return current along are upside. power confident the the the underlying
noting historically by interest the you leverage. discount of of is elevated certificates to the rate deploying and It's see, on also only levels. amount is worth at representing a achieved spread far value the morning recourse the of As table modest fair this over right XX-point ROE a can face
our outline with we the along XX, page of investment and size and financing. securitized repo On debt cost the portfolio, corresponding
our As a loans reminder, on issued, consolidate we securitized balance sheet. securitizations in involvement our and continued the debt given
investment with financing a cost As asset X.X% on of our weighted this slide, of noted contains currently portfolio average of yields X.X%.
over right Turning year. outlines to the top page our past leverage The bar ratio XX. chart
its renown loans quarter's had the progress stated that it peak, the it although leverage go recourse is we was can prepared to debt, down In ratio from we the you to recourse bringing remarks, our to substantial Here lower. from leverage last transitioning lines warehouse today. and where see likely that securitize made
we recourse opportunities. materially we time increase Today as levels we we do are market not conditions adjust this and to and comfortable from decrease can leverage for prudently these stating that believe over expect
recourse was as been quarter reduced X.Xx. subsequent you has leverage As a X.Xx, of end to see, end which can further quarter approximately
at accounted last down of of the quarter end, recourse from XX% As of the XX% approximately aggregate end for quarter. debt
Turning to Page XX.
loss million to Arc table see origination contributing to the $X.X can you volumes Home. continue to in fourth an in the of fall right, after-tax the quarter As for
of still have become more behind origination we to room volumes. cost there's efficient, are likely measures cutting most the the and and lows seen us Although
and seasonality, The increases the combination modest other to these effect will sell the are company lock expect to cautious components and impact wear off among as here of we off factors volume in to believe But we in homebuyers, historic of XXXX. experience the profitability stay. return
important is page. position Despite Home on backdrop, Arc challenging strong note capital is to outlined it the this
$XX under million is approximately of modest of of end, $XX.X million. with leverage and Home just As quarter $XX MSR Arc million has validated cash
is We while of to positioned market gaining resiliency, continue to Arc show relative this challenging expect Home share. its period many to well its believe competitors
position capital This enabled quarter current distributed was Archon strong fourth origination the me. with to of million combined to in capital $X.X group environment which return approximately AG investor the the to
to turn now will the Anthony. over I call
