Mortgage spreads have been blown out for a long time, with agency-backed mortgages trading at times more than 200 basis points above the respective Treasury yield. The mortgage REITs recognized this as an opportunity to buy government backed assets at unusually high yields. This article is not about Dynex (DX), but we will start there as they epitomize what is going on in agency mREITs right now. Terrence Connelly, CIO of Dynex, noted on the 2Q25 earnings call: “Increasingly, there's a need for more private ...

T2 Metals Attends German Mining Events to Present North American Gold and Copper AssetsSeptember 30, 2025 8:00 AM EDT | Source: T2 Metals Corp.Vancouver, British Columbia--(Newsfile Corp. - September 30, 2025) - T2 Metals Corp. (TSXV: TWO) (OTCQB: TWOSF) (WKN: A3DVMD) ("T2 Metals" or the "Company") is pleased to announce the attendance of management and board members at two high profile mining conferences in Munich, Germany during the coming week.The MK Investment Conference on the 1st of Octo ...

So far in 2025, Two Harbors Investment (NYSE: TWO )'s preferred shares have delivered mixed results relative to the iShares Preferred and Income Securities ETF ( PFF ). The Series A shares (NYSE: TWO.PR.A ), which currently offerI ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash s ...

Core Viewpoint - T2 Metals Corp has initiated exploration activities at the Shanghai gold-silver project located in Yukon's Tombstone Gold Belt, targeting high-priority gold and silver anomalies to leverage the geological potential of the area [1][2]. Group 1: Project Overview - The Shanghai project spans 27.4 square kilometers and is strategically located 12 km west of Hecla Mining's Keno Hill silver mine, amidst several other significant gold deposits [1][2]. - The Tombstone Gold Belt is recognized as one of North America's most active mining districts, with recent exploration efforts indicating potential for major gold discoveries [2][19]. Group 2: Exploration Activities - The initial field program will utilize a helicopter-supported team to collect rock chip and soil samples around previously identified geochemical anomalies [4]. - Historical workings targeting high-grade silver-base metal veins will also be sampled, with notable past results including 9.1 m at 1182.8 g/t Ag, 8.2% Pb, and 7.2% Zn [5][18]. Group 3: Target Areas - Exploration will focus on two main zones: Zone 1, which includes the Keno Hill Quartzite and historical silver mine workings, and Zone 2, which shows multi-element and gold soil anomalies suggesting intrusion-related gold mineralization [7][10]. - Historical trenching has revealed high-grade mineralization, with samples showing 1.1 oz/t Au and 790.5 oz/t Ag, indicating significant potential for Keno Hill-style polymetallic mineralization [9][8]. Group 4: Infrastructure and Logistics - The proximity of the Shanghai project to existing infrastructure and other mining operations facilitates efficient exploration logistics, with a Class 3 permit already in place for immediate drilling and camp establishment [6][4]. - The project is held under an option agreement with noted explorer Shawn Ryan, enhancing its credibility and potential for discovery [6][28].

Core Viewpoint - T2 Metals Corp has secured an option to acquire the Shanghai gold-silver project in Yukon's Tombstone Gold Belt, a region known for its rich mineral potential and proximity to advanced mining projects [1][4]. Company Summary - T2 Metals Corp signed an Option Agreement to earn a 100% interest in the 27.4 sq km Shanghai project located in the Mayo Mining District, Yukon Territory [1]. - The project is strategically positioned 12 km west of Hecla Mining's Keno Hill silver mine and near several resource-stage gold projects [1][6]. - The company aims to enhance its portfolio by acquiring high-potential gold projects, with the Shanghai project being held by renowned explorer Shawn Ryan for over 20 years [5][6]. - T2 Metals plans to conduct additional surface sampling and local geophysics, followed by drilling in 2026 [13]. Industry Summary - The Tombstone Gold Belt is recognized as one of North America's most active and gold-rich mining districts, with significant exploration activity from various companies [4][28]. - Recent exploration efforts in the region have indicated the potential for major new gold discoveries, with T2 Metals joining the search supported by Shawn Ryan, a successful explorer in the Yukon [6][20]. - The geological setting of the Shanghai project is similar to major discoveries in the area, which enhances its exploration potential [7][9]. - The project has a Class 3 permit that allows for drilling, road construction, and camp installation, facilitating immediate exploration activities [2][13]. Financial Terms - T2 Metals will acquire the Shanghai project for a total consideration of $500,000 in cash and 3,000,000 common shares, with payments made over a seven-year period [14]. - The company is required to incur a minimum of $1,800,000 in exploration expenditures over six years, including an initial $100,000 by November 15, 2026 [18].

Core Insights - The individual has a B.Tech degree in Mechanical Engineering and nearly twenty-five years of experience in the oil and gas sector, primarily in the Middle East [1] - The investment strategy is informed by traits of efficiency, carefulness, and discipline developed through professional experience [1] - There is a sustained interest in U.S. equity markets, focusing on technology, energy, and healthcare sectors [1] - The investment approach has evolved from growth investing to a blend of value and growth, emphasizing the understanding of business economics and competitive advantages [1] - The individual believes in the importance of allowing time and compounding to enhance investment returns, particularly in high-quality businesses [1] - A moderately conservative orientation is adopted, with a focus on minimizing downside risk as retirement approaches [1] - Recent rebalancing towards income-generating assets such as dividend-paying equities and REITs reflects a shift in investment priorities [1] - Investing is viewed as a means to achieve peace of mind, not just high returns [1] - The individual joined Seeking Alpha to engage with a community of investors interested in real-world business fundamentals and intelligent investing [1] - There is a commitment to investing in ecologically sensitive businesses, as represented by the chosen icon [1]

Core Viewpoint - Two Harbors Investment (TWO) experienced a significant decline in book value (BV) during Q2 2025, attributed to legal losses and hedging decisions, leading to a recommendation of "hold" on shares [1][8][10]. Performance Summary - The actual quarterly BV decrease for TWO was 17.2%, which was worse than the projected 14.8% decline, indicating a severe underperformance [2][8]. - A unique legal dispute with the previous external manager negatively impacted TWO's BV during the quarter [2][10]. - Hedging decisions made by TWO had a negative effect on BV but positively influenced core earnings/EAD [3][7]. Portfolio Management - TWO maintained the size of its on-balance sheet fixed-rate agency MBS/investment portfolio, contrary to expectations of asset shedding due to legal issues [4][10]. - The company made bulk purchases of $6.4 billion in MSRs, resulting in a $2.0 billion increase in UPB, which was contrary to the anticipated decrease [5][10]. - The derivatives sub-portfolio underperformed expectations, primarily due to the lack of asset sales and an increase in the hedging coverage ratio from 77% to 85% [6][14]. Earnings Performance - Core earnings/EAD for TWO modestly outperformed expectations, driven by lower net interest expenses and higher net servicing income [7][8]. - The reported core earnings were $29.594 million, exceeding the projected $24 million, marking a 23.48% beat [18]. Valuation and Recommendations - TWO's current valuation is deemed appropriate, with a hold recommendation due to the ongoing legal matters and the need for spread stabilization [22][23]. - The company’s dividend yield stands at 15.45%, with a payout ratio of 107% [20].

Group 1 - Two Harbors Investment Corp. is a mortgage REIT that has issued a baby bond known as CAL 30 (NYSE: TWOD) [1] - The article discusses the recent financial performance of Two Harbors, highlighting its focus on providing transparency and analytics in capital markets [1] - Binary Tree Analytics aims to deliver high annualized returns with a low volatility profile, focusing on closed-end funds (CEFs), exchange-traded funds (ETFs), and special situations [1]

Company Overview - Two Harbors Investments Corp (TWO) is currently rated with a Zacks Rank 1 (Strong Buy) and has a Value grade of A, indicating strong potential for value investors [4][6] - The stock has a P/E ratio of 7.8, which is lower than the industry average P/E of 8.06, suggesting it may be undervalued [4] Valuation Metrics - TWO's Forward P/E has fluctuated between a high of 191.36 and a low of -21.91 over the past 12 months, with a median of 14.53 [4] - The P/B ratio for TWO is 0.7, which is attractive compared to the industry's average P/B of 1.02, indicating a favorable valuation [5] - Over the past 52 weeks, TWO's P/B has ranged from a high of 0.97 to a low of 0.66, with a median of 0.81 [5] Investment Outlook - The combination of TWO's strong earnings outlook and favorable valuation metrics suggests that the stock is likely being undervalued at the moment, making it an impressive value stock [6]

Financial Data and Key Metrics Changes - The company experienced a total economic return of negative 14.5% for the second quarter, and negative 1.4% excluding a loss contingency accrual of $1.92 per share [5][16] - The book value decreased to $12.14 per share, reflecting the impact of the loss contingency accrual [16] - A comprehensive loss of $221.8 million or $2.13 per share was reported, which would have been $21.9 million or 21¢ per share without the accrual [16] Business Line Data and Key Metrics Changes - First lien originations increased to $48 million UPB in Q2, up 68% from $29 million UPB in Q1, outpacing the nationwide trend of 16% [8] - Second liens brokered amounted to $44 million UPB, with the company beginning to originate second liens in its own name [9] Market Data and Key Metrics Changes - The 30-year fixed mortgage rate rose from 6.6% to a high near 6.9%, stabilizing in the 6.7% to 6.8% range by the end of the quarter [6][7] - The volume of MSR available in the bulk market has decreased by about 30% year over year [26] Company Strategy and Development Direction - The company is enhancing its direct-to-consumer originations platform to recapture loans in its portfolio that may refinance [8] - Significant investments in AI technologies are being made to improve efficiencies and customer experiences [11][12] - The core strategy focuses on low coupon MSR paired with agency RMBS to benefit from stable prepayments and wide agency spreads [31] Management's Comments on Operating Environment and Future Outlook - The management noted ongoing tariff threats and geopolitical tensions as potential market weighers, but also highlighted opportunities in the current environment [30] - The company expects RMBS and MSR portfolios to respond positively if the Federal Reserve cuts rates later in the year [7] Other Important Information - The company issued $115 million in senior notes due in 2030 for net proceeds of $110.8 million, part of which will be used for refinancing [19] - The economic debt to equity ratio increased to 7x, which is within the historical leverage range of 5 to 8 [20] Q&A Session Summary Question: Is the current leverage level a new standard? - Management confirmed that the leverage of 7x is within the historical range and reflects current market conditions [34][35] Question: Update on economic return performance in July? - The company reported an economic return of about 1.5% for July [36] Question: Differences between expected returns and EAD metric? - Management explained that EAD is based on historical purchase yields, while expected returns reflect forward-looking market conditions [43] Question: Thoughts on financing strategy and shift from repo to unsecured? - The issuance of a baby bond was primarily to prefinance the maturity of existing convertible debt [63] Question: Impact of steepening yield curve on the portfolio? - Management indicated that a steepening yield curve could have counterbalancing effects on MSR values, affecting both float income and prepayment assumptions [70] Question: Plans for second liens in the investment portfolio? - The company is open to retaining second liens if yields are attractive, but will also consider selling them [55] Question: Expense structure and AI investment impact? - Most AI-related expenses will be recognized as operational expenses rather than capitalized, affecting the expense ratio [88][92]