Core Insights - TWO Harbors Investment Corp. (TWO) reported its financial results for the quarter ending December 31, 2025, highlighting a strategic merger with UWMC that will significantly expand its mortgage servicing rights (MSR) portfolio to a pro-forma $400 billion [4][5][20] - The company experienced a comprehensive income of $50.4 million, or $0.48 per weighted average basic common share, and declared a fourth-quarter common stock dividend of $0.34 per share, reflecting a 3.9% quarterly economic return on book value [5][8] - The merger is expected to close in the second quarter of 2026, pending stockholder approval and regulatory conditions [5][19] Quarterly Summary - TWO's portfolio as of December 31, 2025, included $9.0 billion in Agency RMBS, MSR, and other investment securities, with a weighted average gross coupon rate of 3.55% and a 60+ day delinquency rate of 0.87% [8][9] - The company added $399.1 million in unpaid principal balance (UPB) of MSR through acquisitions and recapture, while selling $9.6 billion in MSR UPB on a subservicing-retained basis [5][8] - Economic return on book value for the quarter was reported at 3.9%, with a total stockholder return of 2.8% [5][8] Annual Summary - The company generated a comprehensive income of $50.4 million for the fourth quarter, compared to a net loss of $1.3 million in the previous quarter [5][8] - The reported book value per common share was $11.13, with a declared annualized dividend yield of 13.0% [5][8] - Excluding a $375 million settlement expense, the economic return on book value would have been 12.1% [5][8] Post Quarter-End Update - TWO fully repaid convertible senior notes amounting to $261.9 million on their maturity date of January 15, 2026 [3][5] - The merger with UWMC is anticipated to create significant growth opportunities and shareholder value [4][5] Portfolio Summary - As of December 31, 2025, the investment portfolio comprised $9.0 billion in Agency RMBS and MSR, with a net long TBA position valued at $4.2 billion [8][9] - The weighted average loan age in the Agency RMBS portfolio was 26 months, with a gross weighted average coupon rate of 6.1% [8][9] Financing Summary - Total borrowings as of December 31, 2025, amounted to $8.56 billion, with a debt-to-equity ratio of 4.8:1 [14][16] - The weighted average borrowing rate for repurchase agreements collateralized by securities was 4.13% [14][16]

Core Insights - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has successfully recovered millions for shareholders [1] - The firm is currently investigating multiple companies related to their proposed sales, including The Brand House Collective, Avidity Biosciences, NorthWestern Energy Group, and Two Harbors Investment Corp [1][2][3][4] Company Investigations - The Brand House Collective, Inc. (NASDAQ: TBHC) is set to be sold to Bed Bath & Beyond, Inc., with shareholders expected to receive 0.1993 shares of Bed Bath & Beyond for each share of Brand House [1] - Avidity Biosciences, Inc. (NASDAQ: RNA) is proposed to be sold to Novartis AG, with shareholders receiving $72.00 per share in cash [2] - NorthWestern Energy Group, Inc. (NASDAQ: NWE) is being sold to Black Hills Corp, where shareholders will receive 0.98 shares of Black Hills for each share of NorthWestern, resulting in approximately 44% ownership of the combined company for NorthWestern shareholders [3] - Two Harbors Investment Corp. (NYSE: TWO) is proposed to be sold to UWM Holdings Corporation, with shareholders receiving 2.3328 shares of UWM Class A common stock for each share of Two Harbors [4] Shareholder Votes - The shareholder vote for The Brand House Collective is scheduled for March 17, 2026 [2] - The shareholder vote for Avidity Biosciences is scheduled for February 23, 2026 [3] - The shareholder vote for NorthWestern Energy Group is scheduled for April 2, 2026 [4]

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Core Viewpoint - Two Harbors Investment Corp. (TWO) is set to report its fourth-quarter 2025 results on February 2, 2026, after market close, following a history of earnings misses and a recent acquisition agreement with UWM Holdings Corporation valued at $1.3 billion [1][3][9]. Financial Performance - In the last reported quarter, TWO posted earnings available for distribution per share of 36 cents, which was a 10% miss compared to the Zacks Consensus Estimate [1]. - The company has a weak earnings surprise history, missing the Zacks Consensus Estimate in all four trailing quarters with an average negative surprise of 13.34% [2]. - The Zacks Consensus Estimate for fourth-quarter earnings has remained unchanged at 30 cents per share, indicating a year-over-year increase of 50% [10]. Recent Developments - In December 2025, TWO entered into a definitive agreement to be acquired by UWM Holdings Corporation in an all-stock transaction worth $1.3 billion, which will add TWO's $176 billion mortgage servicing rights (MSR) portfolio to UWMC's operations [3][4]. - The acquisition is expected to create nearly $150 million in annual synergies and improve efficiencies in financing, hedging, and secondary market operations [3][4]. Market Conditions - The steady fixed-income markets are likely to have supported asset valuations and improved hedging effectiveness for TWO in the upcoming quarter [5]. - A positively sloped yield curve and a steepening yield curve during the quarter are expected to have contributed to an increase in TWO's book value per share [6]. - The Zacks Consensus Estimate for servicing income in Q4 is pegged at $151.4 million, down 9.1% from the previous quarter, while total interest income is estimated at $90.8 million, indicating a 3% decline from the prior quarter [7][8]. Interest Rates and Funding Costs - Since September 2025, the Federal Reserve has cut interest rates three times, including two reductions in the fourth quarter, which is expected to have lowered funding costs for TWO [9]. - The estimate for net interest income (NII) is pegged at negative $13 million, an improvement from negative $23.5 million reported in the prior quarter [10]. Earnings Prediction - The Zacks model does not predict an earnings beat for TWO this time, as the company lacks a positive Earnings ESP and holds a Zacks Rank of 5 (Strong Sell) [11][12].

Core Insights - The article highlights the performance of an actively managed portfolio focused on undervalued preferred stocks and baby bonds, showcasing significant annualized returns on various trades [1]. Group 1: Trade Performance - The portfolio includes several trades with notable annualized returns, such as AGNCO LIBOR Preferred, which achieved a return of 151.10% over 24 days [1]. - Another trade involving AGNCP LIBOR Preferred yielded a 31.34% return over 38 days [1]. - The ARGO-A Reset Rate Preferred trades demonstrated returns ranging from 9.42% to 39.42%, indicating a diverse performance across different securities [1]. Group 2: Trade Details - Specific trade details include alert prices, exit prices, and net realized gains, providing transparency on the investment strategy [1]. - The portfolio's allocation strategy typically involves a 2% allocation per trade, allowing for a diversified approach to risk management [1]. - The length of trades varies significantly, with some trades lasting as short as 24 days and others extending up to 330 days, reflecting a flexible trading strategy [1].

Core Viewpoint - The proposed sale of Two Harbors Investment Corp. to UWM Holdings Corporation is under investigation to assess whether the transaction adequately values the company and the process leading to it is appropriate [1]. Group 1: Transaction Details - Shareholders of Two Harbors will receive 2.3328 shares of UWM Class A Common Stock for each share of Two Harbors they own as part of the proposed transaction [1]. Group 2: Legal Investigation - Kahn Swick & Foti, LLC is investigating the proposed sale to determine if the consideration undervalues Two Harbors Investment Corp. [1]. - The law firm is inviting shareholders who believe the transaction undervalues the company to discuss their legal rights regarding the proposed sale [2].

Core Viewpoint - Two Harbors Investment Corp (TWO) will release its financial results for the quarter ended December 31, 2025, after market close on February 2, 2026, and will host a conference call on February 3, 2026, at 9:00 a.m. ET to discuss these results [1]. Group 1 - The financial results will be available through a live webcast on the company's website, with a replay accessible approximately four hours after the live call [2]. - To participate in the teleconference, interested parties should call toll-free (800) 330-6710 about 10 minutes before the start time and provide the Conference Code 1408684 [3]. - TWO is a real estate investment trust (REIT) focused on mortgage servicing rights, residential mortgage-backed securities, and other financial assets, headquartered in St. Louis Park, MN [4].

Core Insights - T2 Metals Corp. announced high-grade silver and gold results from grab sampling at the Shanghai mineral project in Yukon, validating the project's prospectivity [1][4]. Group 1: Sampling Results - Eleven rock samples were collected from historical mine dumps at the Shanghai Silver Mine, with gold values ranging from 0.02 to 2.71 g/t and averaging 1.01 g/t; silver values ranged from 0.5 to 451 g/t, averaging 128 g/t [3][19]. - Copper values ranged from 2.2 to 1070 ppm, averaging 192 ppm; zinc values ranged from 0.052% to 19.13%, averaging 4.91% [3][19]. - Anomalous accessory elements such as antimony, arsenic, and mercury were also detected, indicating potential for Intrusion-Related Gold Systems (IRGS) [3][5]. Group 2: Project Context - The Shanghai Silver Mine is located within the Tombstone Gold Belt, a highly prospective area known for significant gold discoveries [10][15]. - The project has a Class 3 permit allowing for drilling and road construction without additional permissions, and it has never been drilled despite its proximity to other significant deposits [6][10]. - Historical exploration by Silver Titan Mines Ltd. in the 1960s revealed substantial underground development, with previous assays indicating high-grade mineralization [14][5]. Group 3: Future Plans - T2 Metals plans to integrate the recent sampling results with reconnaissance mapping to finalize targets for the 2026 summer exploration season [4][5]. - The company aims to leverage the geological similarities between the Shanghai project and other successful mining operations in the region to enhance exploration efforts [4][10].

Market Overview - U.S. stock futures showed positive movement, with Nasdaq 100 futures increasing by over 150 points on Monday [1] Company-Specific Movements - mF International Limited (NASDAQ:MFI) experienced a significant decline, falling 4.6% to $17.61 in pre-market trading after filing for a mixed shelf [1] - SBC Medical Group Holdings Inc (NASDAQ:SBC) dropped 18.9% to $3.51 in pre-market trading [2] - Aimei Health Technology Co Ltd (NASDAQ:AFJK) decreased by 7.7% to $70.00 in pre-market trading [2] - Theravance Biopharma Inc (NASDAQ:TBPH) fell 6% to $17.07 in pre-market trading, following a 3% decline on Friday [2] - Comcast Corp (NASDAQ:CMCSA) tumbled 4.6% to $28.18 in pre-market trading [2] - Equinor ASA (NYSE:EQNR) decreased by 3.6% to $23.66 in pre-market trading after a 4% gain on Friday [2] - Canadian Natural Resources Ltd (NYSE:CNQ) fell 3.4% to $33.15 in pre-market trading [2] - Xpeng Inc – ADR (NYSE:XPEV) slipped 3.3% to $19.75 in pre-market trading [2] - Two Harbors Investment Corp (NYSE:TWO) declined 3.2% to $10.24 in pre-market trading [2] - NetEase Inc (NASDAQ:NTES) fell 2.9% to $143.29 in pre-market trading, following the announcement of Yingfeng Ding's retirement from his position as executive vice president and head of the Interactive Entertainment Group [2]

Group 1 - UWM Holdings Corporation announced a definitive merger agreement to acquire Two Harbors Investment Corp for approximately $1.3 billion in an all-stock transaction, utilizing a fixed exchange ratio of 2.3328x [1] - The acquisition aims to enhance UWM's servicing capabilities by adding a high-quality mortgage servicing rights (MSR) portfolio with an unpaid principal balance of $176 billion, nearly doubling UWM's existing book to around $400 billion, positioning the combined entity as the eighth-largest mortgage servicer in the US [2] - The merger is expected to be highly accretive, with potential annual cost and revenue synergies of approximately $150 million, leveraging Two Harbors' capital markets expertise to improve financing, hedging, and secondary market activities [3] Group 2 - UWM Holdings Corporation is engaged in the origination, sale, and servicing of residential mortgage lending in the US, indicating its focus on the mortgage sector [4]