Financial Performance - The company's book value per share was $12.14 [6] - The comprehensive loss per share was $(2.13) [6] - Excluding the loss contingency accrual, the economic return on book value was (1.4)% [6] - Including the loss contingency accrual, the economic return on book value was (14.5)% [6] - The company declared a common stock dividend of $0.39 per share [6, 19] Portfolio Composition - The investment portfolio totaled $14.4 billion [6] - The economic debt-to-equity ratio was 7.0x [6] - The fair value of MSR (Mortgage Servicing Rights) was $3.016 billion [47] - The UPB (Unpaid Principal Balance) of the MSR portfolio was $200.363 billion [47] RoundPoint Operations - RoundPoint serviced UPB (Unpaid Principal Balance) was $204 billion [13] - Direct-to-consumer originations funded first lien loans of $48.6 million UPB [13] - Direct-to-consumer originations brokered second lien loans of $44.0 million UPB [13]

[Quarterly Summary](index=1&type=section&id=Quarterly%20Summary) Overview of TWO's Q2 2025 financial and operational performance, key metrics, and management commentary [Key Financial and Operational Highlights](index=1&type=section&id=Key%20Financial%20and%20Operational%20Highlights) TWO reported a significant Q2 2025 comprehensive loss and negative economic return, driven by a large contingency liability, while issuing senior notes and improving MSR metrics Q2 2025 Key Financial Highlights | Metric | Value | | :------------------------------------------------ | :---------- | | Book value per common share | $12.14 | | Second quarter common stock dividend per share | $0.39 | | Quarterly economic return on book value | (14.5)% | | Comprehensive Loss | $(221.8) million | | Comprehensive Loss per weighted average basic common share | $(2.13) | | Contingency liability and related expense | $199.9 million | | Contingency liability per weighted average basic common share | $1.92 | | Quarterly economic return on book value (excluding loss contingency) | (1.4)% | | Comprehensive Loss (excluding loss contingency) | $(21.9) million | | Comprehensive Loss per weighted average basic common share (excluding loss contingency) | $(0.21) | - Issued **$115.0 million** aggregate principal amount of **9.375% Senior Notes** due **2030** for net proceeds of **$110.8 million**[5](index=5&type=chunk) - Settled **$6.6 billion** in unpaid principal balance (**UPB**) of **MSR** through bulk purchases, flow-sale acquisitions, and recapture[5](index=5&type=chunk) MSR Portfolio Metrics (QoQ) | Metric | June 30, 2025 | March 31, 2025 | Change | | :-------------------------------- | :------------ | :------------- | :----- | | Weighted average gross coupon rate | 3.53% | 3.53% | Stable | | 60+ day delinquency rate | 0.82% | 0.85% | Down | | 3-month CPR | 5.8% | 5.3% | Up | - Funded **$48.6 million** **UPB** in first lien loans and brokered **$44.0 million** **UPB** in second lien loans[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expressed confidence in TWO's dynamic portfolio and core MSR-Agency RMBS strategy to navigate market cycles and create long-term value - CEO Bill Greenberg emphasized the company's ability to be dynamic and responsive to opportunities in the mortgage finance space, confident in navigating changing market cycles and creating long-term value[3](index=3&type=chunk) - CIO Nick Letica noted resilient fixed-income and equity markets, historically wide spreads for **Agency RMBS** offering good relative value, and a well-positioned core strategy of low coupon **MSR** paired with **Agency RMBS** to benefit from stable prepayments and wide spreads[6](index=6&type=chunk) [Operating Performance](index=2&type=section&id=Operating%20Performance) Details TWO's Q2 2025 operating performance, including key financial metrics and the impact of a loss contingency accrual [Operating Performance Metrics](index=2&type=section&id=Operating%20Performance%20Metrics) Q2 2025 saw significant declines in comprehensive and GAAP net income for TWO due to a loss contingency, despite increased EAD and decreased book value per share Operating Performance (QoQ) | Metric | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | Change (QoQ) | | :---------------------------------------------------------------- | :------------------------------- | :-------------------------------- | :------------- | | Comprehensive (Loss) Income | $(221,807) | $64,931 | Down | | Per weighted average basic share | $(2.13) | $0.62 | Down | | GAAP Net Loss | $(272,280) | $(92,241) | Down | | Per weighted average basic share | $(2.62) | $(0.89) | Down | | Earnings Available for Distribution | $29,545 | $25,092 | Up | | Per weighted average basic share | $0.28 | $0.24 | Up | | Dividend per common share | $0.39 | $0.45 | Down | | Annualized dividend yield | 14.5% | 13.5% | Up | | Book value per common share at period end | $12.14 | $14.66 | Down | | Economic return on book value | (14.5)% | 4.4% | Down | | Operating expenses (excl. non-cash LTIP & certain operating expenses) | $38,090 | $40,465 | Down | | Operating expenses as a percentage of average equity | 7.6% | 7.5% | Up | - The significant decline in comprehensive income and **GAAP** net loss is primarily attributed to the **$199.9 million** loss contingency accrual recognized during the quarter[5](index=5&type=chunk)[7](index=7&type=chunk) [Investment Portfolio](index=3&type=section&id=Investment%20Portfolio) Analysis of TWO's investment portfolio composition, including Agency RMBS, MSR, other investments, and risk management strategies [Portfolio Composition](index=3&type=section&id=Portfolio%20Composition) TWO's total investment portfolio slightly decreased to $14.4 billion as of June 30, 2025, primarily composed of Agency RMBS (73.5%) and MSR (26.5%) Investment Portfolio Composition (QoQ) | Portfolio Composition | As of June 30, 2025 | As of March 31, 2025 | | :-------------------- | :------------------ | :------------------- | | Agency RMBS | $8,387,068 (73.5%) | $8,627,708 (74.4%) | | Mortgage servicing rights | $3,015,643 (26.5%) | $2,959,773 (25.6%) | | Other | $3,449 (—%) | $3,613 (—%) | | Aggregate Portfolio | $11,406,160 | $11,591,094 | | Net TBA position | $3,025,099 | $3,001,064 | | Total Portfolio | $14,431,259 | $14,592,158 | - The company's portfolio was comprised of **$11.4 billion** of **Agency RMBS**, **MSR**, and other investment securities, plus **$3.0 billion** bond equivalent value of net long to-be-announced securities (**TBAs**) as of **June 30, 2025**[10](index=10&type=chunk)[11](index=11&type=chunk) [Agency RMBS Metrics](index=3&type=section&id=Agency%20RMBS%20Metrics) Agency RMBS weighted average cost basis slightly decreased, while three-month CPR increased from 7.0% to 8.4%, with a stable gross weighted average coupon rate of 6.1% Agency RMBS Portfolio Metrics (QoQ) | Metric | As of June 30, 2025 | As of March 31, 2025 | | :--------------------------------- | :------------------ | :------------------- | | Weighted average cost basis | $101.24 | $101.50 | | Weighted average experienced three-month CPR | 8.4% | 7.0% | | Gross weighted average coupon rate | 6.1% | 6.1% | | Weighted average loan age (months) | 27 | 28 | - The increase in the weighted average experienced three-month **CPR** suggests a faster prepayment rate on the underlying mortgages[13](index=13&type=chunk) [MSR Metrics](index=3&type=section&id=MSR%20Metrics) MSR portfolio UPB increased slightly, with stable key metrics; fair value losses were consistent, while servicing income increased and costs decreased MSR Portfolio Metrics (QoQ) | Metric | As of June 30, 2025 | As of March 31, 2025 | | :------------------------ | :------------------ | :------------------- | | Unpaid principal balance | $198,822,611 | $196,773,345 | | Gross coupon rate | 3.5% | 3.5% | | Current loan size | $330 | $330 | | Original FICO | 760 | 760 | | Original LTV | 73% | 72% | | 60+ day delinquencies | 0.8% | 0.8% | | Net servicing fee | 25.4 basis points | 25.3 basis points | MSR Financial Performance (QoQ) | Metric | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | | :------------------------ | :------------------------------- | :-------------------------------- | | Fair value losses | $(35,902) | $(36,221) | | Servicing income | $147,961 | $146,870 | | Servicing costs | $2,322 | $3,302 | | Change in servicing reserves | $64 | $(105) | [Other Investments and Risk Management](index=4&type=section&id=Other%20Investments%20and%20Risk%20Management) Net long TBA notional slightly decreased, while futures notional significantly increased (more negative), and interest rate swaps notional substantially increased, reflecting active risk management Other Investments and Risk Management Metrics (QoQ) | Metric | As of June 30, 2025 ($ thousands) | As of March 31, 2025 ($ thousands) | | :------------------------ | :-------------------------- | :--------------------------- | | Net long TBA notional | $3,040,382 | $3,070,552 | | Futures notional | $(3,398,092) | $(2,930,590) | | Interest rate swaps notional | $19,526,559 | $14,755,568 | - The increase in interest rate swaps notional suggests an expansion of hedging activities to mitigate interest rate risk[16](index=16&type=chunk) [Financing Overview](index=4&type=section&id=Financing%20Overview) This section outlines TWO's financing structure, including borrowing types, collateral, and the overall cost of financing [Borrowing Structure and Terms](index=4&type=section&id=Borrowing%20Structure%20and%20Terms) Total borrowings decreased from $10.9 billion to $10.2 billion; repurchase agreements remained largest with stable rates, and new unsecured senior notes were issued Borrowing Structure (June 30, 2025) | Type of Borrowing | Balance ($ thousands) | Weighted Average Borrowing Rate | Weighted Average Months to Maturity | Number of Distinct Counterparties | | :---------------------------------------------------------------- | :-------------------- | :------------------------------ | :-------------------------------- | :-------------------------------- | | Repurchase agreements collateralized by securities | $7,992,622 | 4.48% | 1.96 | 18 | | Repurchase agreements collateralized by MSR | $790,000 | 7.39% | 10.54 | 3 | | Total repurchase agreements | $8,782,622 | 4.74% | 2.73 | 19 | | Revolving credit facilities collateralized by MSR and related servicing advance obligations | $1,011,871 | 7.36% | 19.96 | 3 | | Warehouse lines of credit collateralized by mortgage loans | $9,275 | 6.31% | 2.47 | 1 | | Unsecured senior notes | $110,867 | 9.38% | 61.55 | n/a | | Unsecured convertible senior notes | $260,944 | 6.25% | 6.54 | n/a | | Total borrowings | $10,175,579 | | | | - Total borrowings decreased from **$10,942,563 thousand** as of **March 31, 2025**, to **$10,175,579 thousand** as of **June 30, 2025**[17](index=17&type=chunk) - The company introduced unsecured **senior notes** with a balance of **$110,867 thousand** and a weighted average borrowing rate of **9.38%** due in **61.55 months**[17](index=17&type=chunk) [Borrowings by Collateral Type](index=5&type=section&id=Borrowings%20by%20Collateral%20Type) Agency RMBS collateralized borrowings decreased, while MSR and unsecured borrowings increased due to senior notes, raising both debt-to-equity and economic debt-to-equity ratios Borrowings by Collateral Type (QoQ) | Collateral Type | As of June 30, 2025 ($ thousands) | As of March 31, 2025 ($ thousands) | | :------------------------------------------------ | :-------------------------- | :--------------------------- | | Agency RMBS | $7,992,427 | $8,970,635 | | Mortgage servicing rights and related servicing advance obligations | $1,801,871 | $1,703,171 | | Other - secured | $9,470 | $8,166 | | Other - unsecured | $371,811 | $260,591 | | Total | $10,175,579 | $10,942,563 | Debt-to-Equity Ratios (QoQ) | Ratio | As of June 30, 2025 | As of March 31, 2025 | | :-------------------------- | :------------------ | :------------------- | | Debt-to-equity ratio | 5.4:1.0 | 5.1:1.0 | | Economic debt-to-equity ratio | 7.0:1.0 | 6.2:1.0 | - The increase in both debt-to-equity ratios indicates higher leverage at the end of **Q2 2025** compared to **Q1 2025**[18](index=18&type=chunk) [Cost of Financing](index=5&type=section&id=Cost%20of%20Financing) Annualized cost of financing, including swaps, U.S. Treasury futures, and TBAs, slightly decreased from 4.49% to 4.43%, with varied changes across collateral types Annualized Cost of Financing (QoQ) | Cost of Financing by Collateral Type | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | | :------------------------------------------------ | :------------------------------- | :-------------------------------- | | Agency RMBS | 4.54% | 4.62% | | Mortgage servicing rights and related servicing advance obligations | 7.87% | 7.81% | | Other - secured | 6.68% | 6.93% | | Other - unsecured | 7.44% | 6.84% | | Annualized cost of financing | 5.18% | 5.27% | | Interest rate swaps | (0.20)% | (0.18)% | | U.S. Treasury futures | (0.10)% | (0.04)% | | TBAs | 2.65% | 2.89% | | Annualized cost of financing, including swaps, U.S. Treasury futures and TBAs | 4.43% | 4.49% | - The overall decrease in the annualized cost of financing, including hedging instruments, suggests improved efficiency in managing funding costs[18](index=18&type=chunk) [Corporate Information](index=6&type=section&id=Corporate%20Information) Corporate details including conference call, company profile, forward-looking statements, non-GAAP measures, and contact information [Conference Call](index=6&type=section&id=Conference%20Call) TWO will host a conference call on July 29, 2025, at 9:00 a.m. ET to discuss Q2 2025 financial results, with access details provided - Conference call to discuss **Q2 2025** financial results scheduled for **July 29, 2025**, at **9:00 a.m. ET**[24](index=24&type=chunk) - Participants can join via toll-free call (**888**) **394-8218** with Conference Code **3889089** or through a live webcast on www.twoinv.com[24](index=24&type=chunk) [About TWO](index=6&type=section&id=About%20TWO) Two Harbors Investment Corp. (TWO) is an MSR-focused REIT investing in mortgage servicing rights, residential mortgage-backed securities, and other financial assets, headquartered in St. Louis Park, MN - **Two Harbors Investment Corp.** (**TWO**) is an **MSR**-focused real estate investment trust (**REIT**)[1](index=1&type=chunk)[25](index=25&type=chunk) - The company invests in mortgage servicing rights, residential mortgage-backed securities, and other financial assets[25](index=25&type=chunk) - **TWO** is headquartered in St. Louis Park, MN[25](index=25&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements subject to various risks and uncertainties, including market conditions, interest rates, prepayment rates, litigation, and REIT qualification, with readers cautioned against undue reliance - The release includes "forward-looking statements" under the safe harbor provisions of the United States Private Securities Litigation Reform Act of **1995**[26](index=26&type=chunk) - Significant risks and uncertainties include changes in interest rates, market value of assets, prepayment rates, defaults, home prices, hedging, financing costs, competition, strategic initiatives, ongoing litigation with **PRCM Advisers LLC**, operational risks, **MSR** acquisition/maintenance, legal/regulatory claims, and **REIT** qualification[26](index=26&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, and **TWO** does not undertake any obligation to publicly release updates or revisions[27](index=27&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP financial measures like EAD are included to supplement GAAP results and aid peer comparison, but should not be considered substitutes and require careful evaluation with GAAP reconciliations - Non-**GAAP** financial measures, such as **Earnings Available for Distribution** (**EAD**), are presented to provide supplemental information for investors and facilitate comparisons to industry peers[28](index=28&type=chunk)[40](index=40&type=chunk) - These non-**GAAP** measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with **GAAP**[28](index=28&type=chunk) - A reconciliation of **GAAP** to non-**GAAP** financial information is provided on page **11** of the release[28](index=28&type=chunk) [Additional Information & Contact](index=7&type=section&id=Additional%20Information%20&%20Contact) Additional company information is available on its website, the SEC's website, or by direct request, with investor relations contact details provided - Additional information is available at www.twoinv.com or the **SEC**'s internet site at www.sec.gov[29](index=29&type=chunk) - Investor Relations contact: Margaret Karr, (**612**)-**453-4080**, Margaret.Karr@twoinv.com[30](index=30&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) Presents TWO's consolidated financial statements, including balance sheets, comprehensive income, interest income/expense, and EAD reconciliation [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $12.96 billion, liabilities to $11.27 billion (due to repurchase agreements and a new loss contingency), while total stockholders' equity decreased Consolidated Balance Sheet Highlights (YoY) | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change | | :------------------------------------ | :-------------------------- | :---------------------------- | :----- | | Total Assets | $12,959,138 | $12,204,319 | Up | | Available-for-sale securities, at fair value | $8,320,757 | $7,371,711 | Up | | Mortgage servicing rights, at fair value | $3,015,643 | $2,994,271 | Up | | Cash and cash equivalents | $657,816 | $504,613 | Up | | Total Liabilities | $11,273,047 | $10,081,810 | Up | | Repurchase agreements | $8,782,622 | $7,805,057 | Up | | Loss contingency accrual | $199,935 | $0 | New | | Total Stockholders' Equity | $1,886,026 | $2,122,509 | Down | - The significant increase in liabilities is partly due to a new loss contingency accrual of **$199.9 million** related to ongoing litigation[32](index=32&type=chunk) [Consolidated Statements of Comprehensive (Loss) Income](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income) Q2 2025 saw a significant net and comprehensive loss, a reversal from Q2 2024 income, primarily due to increased expenses, a substantial loss contingency accrual, and derivative losses, despite higher net servicing income Consolidated Statements of Comprehensive (Loss) Income Highlights (YoY) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net interest expense | $(18,123) | $(38,254) | $(38,455) | $(80,471) | | Net servicing income | $155,968 | $171,540 | $309,630 | $330,754 | | Total other (loss) income | $(151,018) | $(23,806) | $(315,878) | $122,337 | | Total expenses | $242,711 | $38,943 | $289,805 | $86,524 | | Loss contingency accrual | $199,935 | $0 | $199,935 | $0 | | Net (loss) income | $(257,545) | $56,336 | $(336,600) | $259,924 | | Comprehensive (loss) income | $(208,568) | $12,263 | $(130,451) | $112,773 | | Basic (loss) earnings per weighted average common share | $(2.62) | $0.43 | $(3.51) | $2.27 | - The shift from comprehensive income to a significant comprehensive loss is largely driven by the **$199.9 million** loss contingency accrual and substantial losses on interest rate swap and other derivative instruments[33](index=33&type=chunk) [Interest Income and Interest Expense](index=10&type=section&id=Interest%20Income%20and%20Interest%20Expense) Total interest income remained stable QoQ and slightly decreased YoY, while total interest expense decreased both QoQ and YoY, resulting in a reduced net interest expense Interest Income and Expense (YoY) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total interest income | $117,082 | $115,953 | $228,464 | $233,736 | | Total interest expense | $136,701 | $154,207 | $268,415 | $314,207 | | Net interest expense | $(19,619) | $(38,254) | $(39,951) | $(80,471) | - The decrease in total interest expense was primarily due to lower expenses from repurchase agreements and revolving credit facilities[35](index=35&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Information](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Information) The reconciliation shows EAD for Q2 2025 was $29.5 million ($0.28 per share), an increase from Q1 2025, adjusting comprehensive loss by excluding various non-cash and non-recurring items EAD Reconciliation Highlights (QoQ) | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended March 31, 2025 ($ thousands) | | :---------------------------------------------------------------- | :--------------------------------------------- | :-------------------------------------------- | | Comprehensive (loss) income attributable to common stockholders | $(221,807) | $64,931 | | Net loss attributable to common stockholders | $(272,280) | $(92,241) | | Adjustments to exclude reported realized and unrealized (gains) losses (total) | $160,860 | $174,690 | | MSR amortization | $(73,983) | $(70,303) | | TBA dollar roll income (losses) | $6,181 | $8,178 | | U.S. Treasury futures income | $3,358 | $1,272 | | Loss contingency accrual | $199,935 | $0 | | Earnings available for distribution to common stockholders | $29,545 | $25,092 | | EAD per weighted average basic common share | $0.28 | $0.24 | - **EAD** is defined as comprehensive (loss) income attributable to common stockholders, adjusted for various non-cash and non-recurring items, including realized/unrealized gains/losses on the investment portfolio, **MSR** amortization, and the loss contingency accrual[40](index=40&type=chunk) - The increase in **EAD** from **Q1** to **Q2 2025** indicates improved operational cash flow generation when excluding certain volatile or non-cash items[38](index=38&type=chunk)

Core Viewpoint - Small-cap stocks are currently undervalued, presenting potential investment opportunities, especially those offering high dividend yields ranging from 8.3% to 17.1% [2] Group 1: Small-Cap Stocks Overview - The valuation gap between the S&P 500 and S&P 600 is at its widest since the late 1990s, suggesting small-cap stocks are significantly cheaper [2] - The article discusses five small-cap stocks with attractive dividend yields, indicating a potential for high returns despite their current low valuations [2] Group 2: Playtika Holding (PLTK) - Playtika, a mobile game developer, has a dividend yield exceeding 8% but has not raised its payout recently, indicating a decline in earnings and sales [4][5] - Analysts project a 32% increase in profits for 2024, despite the company's struggles in the competitive mobile gaming market [6] - Playtika's valuation is low at 6 times forward earnings, but there are concerns about its growth prospects [7] Group 3: Carlyle Secured Lending (CGBD) - CGBD is a business development company focused on U.S. middle-market companies, primarily investing in first-lien debt [8][9] - Recent earnings reports have shown disappointing results, with an increase in non-accrual loans and a stagnant base dividend of 40 cents per share [10][11] - CGBD shares are trading at a 16% discount to net asset value, but operational challenges raise concerns about future dividend sustainability [12] Group 4: Bain Capital Specialty Finance (BCSF) - BCSF provides financing solutions to a diverse range of companies, with a significant portion of its investments in first-lien debt [13][14] - The company has maintained its regular dividend but has introduced special dividends, raising concerns about future dividend coverage due to declining net investment income projections [16][17] - Analysts expect BCSF's dividend ratios to be high, leaving little room for error in case of operational difficulties [17] Group 5: Two Harbors Investment Corp. (TWO) - TWO operates in the mortgage REIT sector, focusing on mortgage servicing rights and agency residential mortgage-backed securities [19][22] - The company has faced significant share price declines, resulting in a high yield of over 17%, but recent litigation charges could impact its book value and dividend sustainability [24][25] - TWO's current dividend rate of 45 cents per share is at risk due to the potential impact of litigation on earnings available for distribution [25] Group 6: Franklin BSP Realty Trust (FBRT) - FBRT is a mortgage REIT focused on commercial mortgage-backed securities, with a significant portion of its portfolio in multifamily properties [26][27] - The company is trading at a 28% discount to book value, with a low P/E ratio based on 2026 earnings estimates, indicating potential value [28] - Concerns exist regarding the stability of its dividend, as the payout has not changed since 2021, and market conditions could necessitate a review of the dividend policy [29][30]

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Core Insights - T2 Metals Corp. announced results from its Q1 2025 drill program at the Sherridon VMS project, highlighting high-grade gold and silver intersections, including 7.2 g/t Au and 145.5 g/t Ag [2][4][6] Group 1: Drill Program Overview - The Q1 2025 drill program consisted of four holes totaling 1,120 meters, targeting a strike length exceeding 800 meters east of the Bob Lake Historical Resource [3] - The drilling focused on untested geophysical targets rather than areas with past mining or historical resources, aiming to reduce environmental impact [5][12] Group 2: Significant Findings - Drillhole SHN25021 intersected a new zone of high-grade precious metal mineralization, similar to previous findings at the Lost Lake prospect, indicating potential for further exploration [4][8][11] - Drillhole SHN25022 targeted hanging wall Cu-Zn mineralization adjacent to the Bob Lake Historical Mineral Resource, intersecting semi-massive sulfide mineralization [9] Group 3: Future Exploration Plans - The company plans to continue exploring the Sherridon project for Snow Lake-style gold targets, emphasizing the potential for high-grade Au-Ag mineralization [11][30] - Geophysical surveys are currently suspended due to fire-related evacuation orders, but will resume to provide additional information on high-merit targets [13]

Core Insights - The article discusses the anticipated decline in book value for mortgage REITs during Q1 2025, indicating a negative trend in the sector [1][4][6] - Two Harbors is highlighted as a significant underperformer among agency mortgage REITs, facing legal challenges that could further impact its book value [4][5] - The overall volatility in the mortgage REIT market is contributing to the decline in book values, with most companies projected to see decreases ranging from 1.4% to 14.5% [6][7] Mortgage REITs - The article notes that volatility in the market, including tariff issues and bond market fluctuations, is detrimental to mortgage REITs [6] - Most mortgage REITs are expected to experience declines in book value per share, with only one REIT estimated to have a slight increase of less than 1% [7] - ARMOUR Residential REIT is mentioned as one of the larger projected losers in terms of book value [8] Business Development Companies (BDCs) - In contrast to mortgage REITs, BDCs are showing more stability in book value, with gains of about 1% for the top performers and declines of around 2% for the worst performers [9] Legal and Management Issues - Two Harbors' management faced criticism for their performance during the pandemic, leading to a legal battle that may result in significant financial losses for shareholders [4][5] - The potential legal loss for Two Harbors could allow the former external manager to collect approximately $140 million, raising concerns about corporate governance and accountability [4][5] Investment Strategy - The article emphasizes a preference for lower-risk shares due to the current volatility in the market, suggesting a cautious approach to investment in mortgage REITs [10]

Core Viewpoint - T2 Metals Corp is actively monitoring the wildfire situation near its Sherridon copper-gold-zinc Project in Manitoba, prioritizing the safety of personnel and the local community [2][4]. Group 1: Wildfire Situation - The Manitoba Wildfire Service has reported active fires close to the Sherridon community and the company's mineral concessions [2]. - As a precaution, T2 Metals has temporarily suspended field activities at the Sherridon project site to ensure safety and allow for continuous monitoring of the situation [3]. Group 2: Company Response - T2 Metals maintains clear communication with the Manitoba Wildfire Service and local authorities for real-time updates and guidance [3]. - CEO Mark Saxon expressed concern for the affected community and emphasized that the safety of the team and residents is the top priority, with plans to resume operations once it is safe [4]. Group 3: Company Overview - T2 Metals Corp is focused on enhancing shareholder value through exploration and discovery in under-explored areas, including the Sherridon, Lida, Cora, and Copper Eagle projects [5].

Group 1 - The article focuses on the analysis of Two Harbors Investment Corporation (NYSE: TWO) and its recent developments in the context of an exchange-traded fixed-income security IPO [1] - The analysis is part of a series of informative articles aimed at active investors, encouraging participation in discussions and sharing insights in a chat room with experienced traders [1] Group 2 - The article does not provide specific financial data or performance metrics related to Two Harbors Investment Corporation [2] - There is no recommendation or advice given regarding the suitability of investments for particular investors [2]

Core Viewpoint - Two Harbors Investment Corp. experienced a significant drop in share price in April, reaching a new 1-year low, but has since undergone a substantial recovery, partly driven by its earnings performance [1] Group 1 - The share price of Two Harbors Investment Corp. fell to a new 1-year low in April [1] - Following the low, the company has seen a profound recovery in its share price [1] - The recovery was aided by the mortgage REIT's earnings scorecard [1]

Group 1 - The article discusses the preferred stock and baby bond market activity, providing both bottom-up analysis of individual news and events, and top-down overview of the broader market [1] - ADS Analytics is a team of analysts with experience in research and trading at leading global investment banks, focusing on generating income ideas from various security types including CEFs, ETFs, mutual funds, BDCs, and individual preferred stocks and baby bonds [1]