I and of that had will the everybody centerpiece a as chance you, operator, hope deck usual, Thank to discussion. as today's good morning. has download the be
the the So that, end I'll at you And session. of through have deck. be Q&A a we'll then walking
As rundown usual, a I'll just give of you quick the agenda.
we'll we'll go provide dig and and developments of details So do first and into the the shape for that our our quarter, outlook thing hedge the talk market get about position. portfolio is then the over for results results our the our we'll and future,
So turning Slide X. to
of income of the our last For $X.XX QX year. XXXX, quarter versus $XXmillion first net was
rates the that We to slightly X.XX% Speeds average of portfolio aging it at book and a slightly end higher. balance more early kind quarter year, makes would the and by have X probably versus of at look statement. meaningful in delever increased appears declined X.XX% $X.XX preliminary and of it not then increased last at to was fourth beginning just on provides liquidity, look our return slightly. QX was release average slightly. was the XX-Q just over middle it where our our versus and we X%. the unchanged but expect But MBS we of you in That's X.X% calculation where like quarter. of the of for sometime end in increased was was X, misleading that's peaking, portfolio the the were in Our last change. because from Leverage to had of when And improved is fourth somewhat just simple were over The if where were at sheet so value quarter, target the QX a ending so the but quarter. quarter, of QX, Slide dividend range. again, today. the it right the seasonal we end income the slightly Total to Slide
come So you'll do I change. walk Slide income. do to the X, you numbers expect call and these per of the With is we get final like and here. the of what numbers. on at We X just kind a respect basis dividend. is to these you show adjusted through on this where to our just One then the page things the not economic just top of couple just comments share about a you they from. bottom, make And show
the the So number, interest comes income the with to right respect that sheet. off top, balance
interesting representative income that's for the It statement a number either. So That's number. or report would of just the tax. we GAAP is
We don't income thinking dividend, same. our is of the The end representative, this been tax, calculate slightly if the exactly calculated not interest but QX. accretion down slightly reflecting amortization. the fact again, next is they've just on that So based up although at income and premium number marked representative. the number for of quarter, It's beginning that it's prices, just of that's period taxable what terms different you're and in a of the drives
actual number, in we is that it a representative. discount had dollars less tax, a not the The exactly interest next this Again, paid is but is expense. what for it that's but report That's item is not little been. was GAAP So than interest expense. number only
to current number, positions same all be So interest that that we for hedge what of between and X, similar for tax. the hedge the the to report pertains open in portion finally, the basically change would process our close future it versus the to periods, And use proxy taking then the the last That's tax. very tax. period allocating you the for would and is that that's a
So then just off statement. is tax. number right very that, the that's expenses, that just also income And representative. And to is again, finally, close
of and of So that's the kind long short the it.
then very So what share a you per but this income. the of is dividend. least below exact, call representative. quarter number the approximation not and is $X.XX It's basis, see taxable good above can And we would just at a $XX last it on
dividend. through the earning need of that as if doing as about it reassess there's the see thinking of to now. we So the after as to comfortably for the always that appears adjustment dividend second do an year And will we then kind move quarter we're we a
So we'll dramatically. see. you know can never But for markets very change now,
think look forward. of we you look dividend policy, you've have also to when So -- got but backward, you also to
near doing said, the So I future. as we'll that, in be
discussion. to now kind is you is The market development. want to interesting left a slide. walk this Turning And QX an I of this. through top
be blue of market we then you last peak all was if So strong since bottom Friday. added then, X of Fed where and this between kind were the were then the just extra how retraced.So line we've those the line some October. and know green dates line The and we've about had why these we we of orange is give quarter. It the end what that rallied. context. was. to would the at And the of represents And is we And pivot rally, end the see appeared the in but the the XX/XX X/XX. year, numbers, And happened book end rates kind you the and X are last the
are bottom, the slide, this A last data the we intending it's is a did on recent Friday, we On thought then to in and I inversion and we've you And direction, So lows the hedging been rally in in that comments just our next the Orchid can the make. And December. the was still inverted. the just off strategy still well you of coupon positioning we that as couple want current reflected spread. saw if retracing steepening since fairly -- to at that, but rally the November overdone again, that. look and inverted see point of last most curve,
least, still If really at from you we that last of where quarter. quarter, kind at place at is the end were early but we've fall. Since since a we a was been of we of the in the mid-'XX the tightening first look it where range we the in when well of were of cycle, kind quite end the in at which ways 'XX, local were Mortgages then, off were some, we're quite kind did lows. backed had
as the XXXX, tight a wide. then still by way still from on So to we were this But wide not data long historical back standards. basis, a goes since the back quite way we look all if as historical you are
hedges. these were but These the have quarter that's, long they if to the On mortgages negative, normalized hedges. roles for all you have With the and of so been absolute at to except done coupons, basis has were bottom Since for absolute down left, going been to the can you look to course, change back the they've XXX well are just widened, various most where relative we see quarter, quite And relative end they year. terms, on respect of end, price at coupons. fairly of the most also production see, the the an price, a you done prices, a in in case roles, as absolute beginning versus time. but
performance Obviously, were is of only of And vol. Turning This thing year a supportive I want the the volatility end out, but -- mortgage of it's quarter, that to you the Slide we where versus driver if now. at of the very look at very helped. That's end not to off volatility meaningfully. important is came XX the point just performance. mortgage
During we quite money of a funds, into the presumably that out first was inflows are equities. also bit of manager quarter, aware there
off. And banks reengaged inflows so all got cash, you've and of getting
see community mortgages. had secondary elevated volatility with And spreads more and going all the way thought. and but vol I it's portfolio, reverse, on business basis, kind still going it's refi going XX the highs, it's this food elevated. just and the to at we're volatile. to We've well Slide a line very red there. We these the to try The left So it's off is changed. in on decisions to -- still very it a place. hasn't the still still is the of just final I'll but quarter. little where back not To want and extremely really call a long-term but to originator we on levels spreads. average And if to the really lot a historical somewhat still elevated. is rates, good a that elevated, respect historical in on probably That's again, in is slide and at this so basis, We're since then the It before up just their captured somewhat by is local still made still very, years, primary for move driven probably index price XX bad low then, in look 'XXs it's then prepayment where you top a activity. they rate, volatility of date, for back bit
Just end goes terms. a any just is in dollar line -- think is strong the worthy want there. throw to too of the in of here. draw you financial this But And discussion. conclusion the it's U.S. crisis. don't some see This I here to really GDP, top GDP back I what
steady adjusted kind period steady. market the participants it's energy as And the at been all But over time over So about interesting this passing data of see, look growth nominal by terms, you at when rate and and decisions. yet amazingly of you increasing long economists until pandemic. can And up not up inflation. think it's spent policy pandemic very an when until you for all and was time amazingly dollar the the economic
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increase. it's one. dollar fact, essentially dollar a It's correlation In for is
that's interesting So one observation.
this trend. lines can MX And I lines. And red trend these I our for kind put we if you is years don't growth here. has stretch, is know bit growth one so line many changed. of supply its the but is in clearly the the economy, relationship as between which and above kind of the and a are just guess Another long-term steady of a These money was see, so
Now it's kind of of out filter.
the much although the has the money more now in growth supply So up. economy, rate the of rapidly has grown picked economy
being policies $X would Chairman thing Now but funds government the function the you is the to conclusion we've supply of the had Bernanke much, much spoke the much not fiscal extent it's were money Act rate a they're growth They the and he were if government is, in immediate a as when that. a you to draw But policy follow-on basically They the the no But was deficits much back aftermath the can or even but back if at the less But growth been to in if the -- Fed, Congress that monetary There's I is deficits. that doing least an talk kind One same note in fiscal by when not as X. of appropriate. know outsized They could. fiscal COVID as more I hoped impact policy financial has line. QE. for supply purely spending this had there thing, you speak, questioning of in anything on think with say crisis, trillion to interesting accommodated, couldn't years, -- outsized rate. sequester don't the doing growth They they they the this it a commonative monetary in the I was then. do CARES don't it's more and is response that about were to pretty alignment. had as money he starting programs here Fed a were Chairman fiscal maybe in of of at had if was various $X.X go know function how the very late. deficits, to billion and somewhat when and this we but at of today were
is at stimuli. out rates If of monetary you QT, -- doing It's has alignment They're not raised fiscal very today, look restrictive. Fed huge points. but policy over policy much is basis Washington The very in coming deficits. XXX whatsoever.
are that that Growth So labor market of monetary odds the strong. policy maybe is is robust. still and Inflation you that's hoped. fiscal is had they to at fairly working still why still having Fed strong. the and policy is leads not think, The kind success well,
reason. an wanted interesting for So picture, throw I here, that just in anyway, food thought, this for to thought just I was
the set to and stage of portfolio. the before into so I the to get of want just kind on we the moving details Now forth. portfolio
in to think you have into coming what where we've you I understand If quarter want to what we done, the this understand and were happened year.
members the of the clearly in the interest Chairman, the rates, had cuts Fed pretty on the spoken so horizon. hit fourth had various have the Fed of psychohygen appeared rate quarter 'XX, we pivot about openly long we not And -- after after to
Fed in And actually rally, seen lot that growth above. overdone. strong. as a that yesterday, the Inflation we size, we even quite in we've that that turns had because data been cuts though X is inventory that. was so strong. was of what We the buy it reported market month lot quarter so we every first the pictures We is strong XXXX, remained saw the discussed, has price the in was thought the enter far. in out, of and somewhat it has a just low trade. Payroll GDP, quickly XXXX And in market moved and of didn't to market pivoted
knowing And we say it's the not happen know it to happen. think hold, going going so it's to and I on if even safe pivot maybe but is necessarily to that when or on hold don't it's
the that's So kind background. of
high, to us So in where not rates at don't kind in where quo our policy to bad environment we're things that high, for the outcome And exist minds, stay outcome. takeaway what and stays is foreseeable monetary is looking this status that it's we a necessarily have of continue means from change, future. a the basically
we it in when was Our 'XX, hedge positions as into I buy that mentioned thought overdone. rally. rallied, the We market didn't
So hedges we very kept at a our level. high
result, very year. increased. decreased, a only our not been As not were really actually it we this adequately And NIM it's is hedged coming into -- has
increase net And so existing this condition $X.XX some the hedge our for the portfolio. to spread quarter, going economic interest quarter. here coupon The on the was versus of position for up XX, kind interest, time. now continue another increased of from inclusive last the we're $X.XX basically of basically quarter. did And taking $X.XX slide points. What our quarter basis Slide the on X during portfolio for we to average $X.XX positions we realized net the to the yield for It for to the was
I is of slide next we've what the illustrative done. really, Now think,
on right So existed our see the the you portfolio of end at here, bottom has XXXX.
were belly and coupon. overweight the end the And of over left a in target more lower of our basically migrate to and had you didn't is through coupons in left and lot see, of the We we've keep year And of at can opportunistically long have that moving to construction time, structure lot end hiring coupons. here. time. we quarter, time. the as holding They this they're ideal exist was add not been portfolio but time, a higher time, of then. outstanding current Now portfolio where continued the at then there barbell But at the -- the last mind higher really coupons to a target even coupons move as exist you point may today produced, a coupons of to the that the that Xs
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tend to the make using tend when So and sense. that well we we sell it will, they perform makes they we When rally, poorly. construction wins, the of strategy if more you off, to perform
funding turning to our So and on kind focus of side. hedging Slide more now XX,
line very were X-year end that the you year. saw to going we line And even gray That's red our of funding hedges been time. graph expansion been our our and in the see the is side, strategy. we've over of some in flat as funds. can of said, saw see of has very The the I that cost economic expansion. with funds But our protect, result able aggressive cost you of rapid we for the is on As this of maintaining SOFR a hedging into period period, that you right-hand
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a notional You balance. pay a rate prescribed fixed on
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and actually if some in hype can But did position appears we be very, they well. the event, Of course, solid. NIM would side repo stay time, in this for any actually higher very as our
gives TBA is This really helps repo We protect worked to book lower with But QX, QX. rally picture up here. QX of bigger duration. in hedge point focus we moving have very migration assets higher hedges we is are this swaps. high, well want same well. excluding Just us hedged, kept Slide detail. our the which hedged into the reemphasize just more greater XX. in when did that's funding well for positions, XX very and interest And XX% conjunction coupon and of But time, basically, rate into not just our I extend we positions on at you our have value a as our our in duration our to Slide shorts hedged, our the and lower coupons, did in
are rate back after to that for beginning then off took this market or sold yesterday, interest the number quarter. at quarter out tried the increased of were kind started sell off. slightly. added much, off. actually to shorts we the markets of positions And positions TBA when unchanged some just the very sell very futures Our TBA the actually We as
of $XXX at So quarter. about the versus the at position is the million million end short now $XXX
there. quarter. moved time. quite trip very round well bit for first, we've off in the the short days a of a we XX-odd worked think got It whatever But we've So
of -- the were added years swaps some taken And to positions. the greater we've to last time, than some dual did of and of changes the peers option. digital moved. our called is are have Otherwise, that off. longer just there, swaps X no X respect With longer the a so than swap we that So what passage that we add slightly
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driving in what's and just Slide really lot doing what let's of XX, here. is this we're Now a
numbers, we look at So a these basis. on regular
book, and we these are to coupon of I convexity coupons effective point stack things. want these out can And different couple a the yield So project the returns and the various under and then duration scenarios. using
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for lower you convexity hedge. negative look And easy if at instance, very so to the makes coupons, it while, that low
the at rally, the returns. of look you are if to great even very easy but they're so can bad course, you they see it's, equally securities in And hitch. And sell-off, a
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kind this with going effective. to to to very trying can the and And very which kind expensive belly, be what long don't here do hedge in challenging. if be here. direction, either have is very we for And where we could situation move But driving we We're doing a so what's we're time. think that's of at looking strategy deal of be a we barbell
at can again, could underperform the extend instance, they hedges of thing in meaningful coupons those look big for you belly a a And if meaningfully. and and same some So happen. selloff rally,
do if meaningfully -- well we So same to direction. in this construction pretty time, either changes. move ourselves at allows us nothing the if do position well but to
February of changes XX, basis duration and is kind March this strategy as which given with are our again, as we're in And model, not realize rate up Slide shocks, but we've you'll well want low minus seasonal moving Ideallly in the the you to trough seasonal in bottom speeds that's effect really just equity as want kind kind probably you point would there. then what finally, just of necessarily so for just and net the as X as QX the April, our numbers basically point around interest outlook. an the and our don't to it's but QX. course portfolio. just possible. have might our gap. right that, the plus so much And focused peak, uptick these still or towards Speeds XX why have We provide rate out be otherwise. out backup on. picked as is comfortable seen March. so faster of acquisitioning. I of Those then of June, Slide I in January, -- up coming though sum that's even those somewhat that over we're the only XX That's the suspect shock. And you showed we're March. with numbers the know is speeds And just
is QX, didn't think come And developments and the where be I and driven in higher pricing itself the has described I I the the market this of you much really, to back out. is market early in there's Vol next think who uncertainty from, much basically current pivot mean, even look market Fed about do. QX higher. actually year, going got if The what some one is increased. there's with at could move ahead the we've just work very cut rates
very just to the low last it the in was to where sharp year that's and everybody the think the points significant contrast but in a at market of end assuming cutting. uncertainty outlook very, I probability, the
result valuations are of a mortgage are attractive. all As this, and cheapened
very for us. good that's So
are quite -- forward, for attractive. looking are us. all bad We've very So opportunities investment these nice. They're of developments not actually
contained been our protect very position well through Our We're funding where moves have extreme hedging [Indiscernible] strategy. we costs a book some higher. in value can
good protection very upside book back. maintained to extent exposure been value. coupons lower we have our we rallied potential to the And have We to of
of So going are at we what and we that's and forward. kind we've look where what done
I operator, I'm before book is. guess know just sure everybody wants So to we say is conclude, will that it. book I our value, what
As of PMI yesterday, -- when a Thursday, of Friday, about soft we we gave as market on about number hard rallied Tuesday some of but assets down we risk last very Wednesday in back. were X.X% had and X% that rallied,
is So last night X% our estimate and of as down last about X.X% Friday. about best
operator. call I the with So turn over will that, questions, to
