Core Insights - Annaly Capital Management (NLY) reported second-quarter 2025 results with earnings exceeding the Zacks Consensus Estimate, demonstrating resilience amid tariff-related uncertainties and mortgage market volatility [1][4] - The company achieved a positive economic return of 0.7% for the seventh consecutive quarter, supported by its agency, residential credit, and mortgage servicing rights strategies [3] Financial Performance - The average yield on interest-earning assets was 5.42%, an increase from 5.17% in the prior-year quarter [1] - The average net interest spread rose to 1.47% from 1.24% year-over-year, while the net interest margin was 1.71%, up from 1.24% in the same quarter of 2024 [2] - Net interest income (NII) surged to $273.2 million in Q2 2025, compared to $53.6 million in the prior-year quarter [6] - Book value per share decreased to $18.45 as of June 30, 2025, down from $19.25 a year earlier [3] Market Conditions - The Federal Reserve's interest rate cuts have led to a slight decline in mortgage rates, with the average 30-year fixed-rate mortgage at 6.74% as of July 24, 2025, down from 6.78% a year prior [5] - Housing affordability challenges are easing, contributing to increased loan demand, which positively impacted NLY's financials [6] Portfolio Strategy - Annaly's diversified capital allocation includes residential credit, mortgage servicing rights, and agency mortgage-backed securities, totaling an investment portfolio of $89.5 billion [8][10] - The company is focusing on acquiring newly originated mortgage servicing rights to enhance its MSR business, which tends to increase in value as interest rates rise [11] Dividend Profile - Annaly has a strong dividend yield of 13.5%, significantly higher than the industry average of 12.4%, with a payout ratio of 99% [14][17] - The company raised its dividend by 7.7% in March 2025, reflecting confidence in its cash flow and growth prospects [17] Stock Performance - Over the past six months, Annaly shares have increased by 8.4%, outperforming the industry average of 2.8% and peers like AGNC Investment and Arbor Realty Trust [20][21] - The Zacks Consensus Estimate indicates substantial year-over-year growth in sales of 463.4% for 2025 and 29.2% for 2026 [24] Investment Outlook - Annaly is positioned to deliver stable, risk-adjusted returns due to improving interest spreads, a diversified portfolio, and solid liquidity reserves [30] - The company is trading at a forward P/E multiple of 6.97X, lower than the industry average of 7.98X, suggesting an attractive valuation [31]

Core Viewpoint - AGNC (NASDAQ: AGNC) offers a leveraged investment opportunity in highly liquid and relatively safe Mortgage-Backed Securities (MBS), with optimal performance dependent on stability in interest rate markets [1] Company Summary - AGNC's investment model is designed to capitalize on the liquidity and safety of MBS, making it an attractive option for investors seeking stable returns [1] - The company has been extensively analyzed in previous writings, indicating a strong interest and ongoing research into its performance and market positioning [1] Industry Context - The performance of AGNC is closely tied to the broader interest rate environment, suggesting that fluctuations in rates could significantly impact its investment outcomes [1]

Group 1 - The earnings call is for Invesco Mortgage Capital's second quarter of 2025 [2] - The call is being recorded and includes a presentation available on the company's website [3][4] - The presentation will cover forward-looking statements and non-GAAP financial measures [4] Group 2 - John M. Anzalone, the CEO, will provide an overview during the earnings call [5]

Second Quarter 2025 Earnings Call Invesco Mortgage Capital Inc. July 25, 2025 John Anzalone Kevin Collins Mark Gregson David Lyle Brian Norris Chief Executive Officer President Chief Financial Officer Chief Operating Officer Chief Investment Officer Cautionary Notice Regarding Forward-Looking Statements 2 Q2 2025 Results | Financial Results | | | | | Investment Allocation | | --- | --- | --- | --- | --- | --- | | | Q2 25 | Q1 25 | | | | | Net income (loss) per common share | ($0.40) | $0.26 | | | | | Earnin ...

Core Viewpoint - Greystone Housing Impact Investors LP will host a conference call on August 7, 2025, to discuss its Second Quarter 2025 results [1] Group 1: Conference Call Details - The conference call is scheduled for 4:30 p.m. Eastern Time on August 7, 2025 [1] - Participants can join the call toll-free at (877) 407-8813 or internationally at +1 (201) 689-8521, with no pin required [2] - A live webcast will be available on the Partnership's website, and it is recommended to join 15 minutes early [2] Group 2: Company Overview - Greystone Housing Impact Investors LP was established in 1998 to manage a portfolio of mortgage revenue bonds for affordable housing [4] - The Partnership aims to acquire additional mortgage revenue bonds and other investments on a leveraged basis, benefiting from favorable financing structures [4] - The interest earned on these mortgage revenue bonds is expected to be excludable from gross income for federal tax purposes [4]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported a net loss to common shareholders of $3 million, translating to a loss per share of $0.04, primarily due to fair value declines and a non-recurring tax adjustment of $14 million [2][11] - The book value per share as of June 30 was $15, a slight decrease from March 31 [2] - The company declared a common dividend of $0.40 per share for the second quarter [2] Business Line Data and Key Metrics Changes - The Credit Sensitive Strategies contributed $22 million to pretax income, while interest rate sensitive strategies reported a pretax loss of $5 million [11] - Gains from organically created Credit Risk Transfer (CRT) investments were $17 million, with $9 million from realized gains and $8 million from market-driven value changes [11] - The company completed three securitizations totaling $1.1 billion in UPB, retaining $71 million in new investments [4] Market Data and Key Metrics Changes - Total correspondent loan acquisition volume was $30 billion in Q2, up 30% from the previous quarter [12] - PMT retained 17% of total conventional correspondent production in Q2, down from 21% in Q1 [13] - The weighted average coupon of mortgages underlying MSRs was 3.9%, indicating borrowers have little incentive to refinance [6] Company Strategy and Development Direction - The company aims to execute one securitization of agency eligible non-owner occupied loans per month and one jumbo loan securitization per quarter, focusing on leveraging organic investment creation abilities [5] - PMT's structure allows efficient capital deployment into long-term mortgage assets without the operational burdens of origination and servicing [3] - The company is positioned to continue growing its private label securitization market presence, having been a top three issuer of prime non-agency MBS [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a volatile market by leveraging competitive advantages, including a diversified investment portfolio and strong risk management practices [10] - The company expects to maintain a stable dividend level of $0.40, supported by projected taxable income and investment strategies [40] - Management noted that realized losses are expected to remain limited due to the overall credit strength of consumers and substantial home equity accumulation [8] Other Important Information - The fair value of PMT's MSR asset at the end of the quarter was $3.8 billion, slightly down from March 31 [12] - Delinquency rates for the MSR portfolio remain low, attributed to strong consumer credit and home price appreciation [8] - The company issued $105 million in unsecured senior notes due in February 2030 [15] Q&A Session Summary Question: Discussion on non-agency securitization opportunity and returns - Management noted that non-agency subordinate MBS experienced credit spread tightening despite rate volatility, with expected returns in the mid to low teens [18][19] Question: Retained interest on jumbo loans - The company retained a senior mezzanine tranche on the jumbo securitization, indicating a likely trend of retaining a greater portion of interest in future securitizations based on capital deployment [21][22] Question: Sustainability of the $0.40 dividend level - Management remains comfortable with the $0.40 dividend level, citing stability in taxable income and expected returns from investments [40]

Financial Data and Key Metrics Changes - AGNC reported a comprehensive loss of $0.13 per common share for Q2 2025, with an economic return on tangible common equity of negative 1% [14] - The tangible net book value per share declined by $0.44, while dividends declared per common share were $0.36 [14] - As of the end of July, the tangible net book value per common share increased by about 1% after accounting for monthly dividend accrual [14] - Quarter-end leverage increased slightly to 7.6x tangible equity from 7.5x at the end of Q1, with average leverage rising to 7.5x from 7.3x in the prior quarter [14][15] Business Line Data and Key Metrics Changes - The asset portfolio totaled $82 billion at quarter-end, up approximately $3.5 billion from the prior quarter, with a focus on higher coupon specified pools [19] - The weighted average coupon of the asset portfolio increased to 5.13% during the quarter [19] - The net spread and dollar roll income declined to $0.38 per common share, primarily due to the timing of capital deployment and higher swap costs [17] Market Data and Key Metrics Changes - Agency mortgage-backed securities (MBS) underperformed relative to benchmark interest rates, with spreads to treasury and swap rates widening [5][7] - The current coupon spread to a blend of treasury and swap benchmarks ended the quarter wider by 7 and 14 basis points, respectively [7] - The expected net supply of new MBS for the year is about $200 billion, at the low end of most forecasts [9] Company Strategy and Development Direction - AGNC's strategy focuses on maintaining sufficient liquidity to navigate financial market volatility and taking advantage of wider MBS spreads [6][9] - The company aims to deploy capital opportunistically in attractively priced assets while managing leverage [26][27] - The favorable outlook for agency MBS is supported by anticipated regulatory changes and a commitment from key policymakers to maintain implicit guarantees for agency MBS [9][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the financial market stress in April led to a reassessment of macroeconomic and monetary policy outlooks, but most markets recovered by the end of the quarter [4][6] - The company expects bank and foreign demand for agency MBS to grow, with improved seasonal supply patterns for MBS issuance anticipated in Q3 [8][9] - Management expressed confidence in the stability of the mortgage market and the potential for tighter mortgage spreads over time due to supportive government policies [12][21] Other Important Information - The liquidity position totaled $6.4 billion in cash and unencumbered agency MBS, representing 65% of tangible equity, an increase from 63% in the prior quarter [15] - The average projected life CPR of the portfolio declined to 7.8% from 8.3% in Q1, while actual CPRs averaged 8.7% for the quarter, up from 7% in the prior quarter [17] Q&A Session Summary Question: Insights on the attractive environment and capital raising - Management indicated a favorable outlook for agency MBS and the potential for raising additional capital or increasing leverage as opportunities arise [23][26][27] Question: Core earnings trajectory and dividend levels - Management discussed the alignment of net spread and dollar roll income with portfolio economics, suggesting a return on equity in the high teens range [32][36] Question: Capital deployment status and opportunities - Management confirmed that approximately $1 billion worth of mortgages were purchased recently, with a focus on higher coupon specified pools [43][44] Question: Optimal size of the company and capital issuance - Management emphasized growth driven by accretive capital raising, highlighting the benefits of scale and liquidity for shareholders [50][53] Question: Balance between swap hedges and treasury futures - Management noted a preference for a balanced mix of swaps and treasuries, with a current overweight in swaps due to market conditions [58][60] Question: Impact of government budget deficit on the repo market - Management expressed confidence that treasury issuance would not materially impact the repo market, citing ample liquidity [90][92] Question: Changes in credit scoring and prepayment environment - Management acknowledged potential impacts from changes in credit scoring but deemed them not significantly impactful from an investor perspective [100][104] Question: Risks associated with prepayment protection - Management recognized the risk of increased prepayment speeds due to market efficiency but noted that significant rate drops would be necessary for widespread refinancing [106][112]

Core Insights - Dynex Capital reported significant growth in its portfolio and market capitalization, with a portfolio size of $14 billion, over 50% larger than the previous year, and a market cap exceeding $1.5 billion as of June 30 [2][4] - The company increased its economic leverage to 8.3x from 7.4x, supported by a stable mortgage repo market and strong liquidity [3][4] - High-return agency mortgage-backed securities (MBS) are driving risk-adjusted returns, with ROEs on newly acquired positions ranging from the mid-teens to low 20% [5][6] Financial Performance - Dynex Capital's debt-to-equity ratio stood at 8.3, with quarter-end liquidity at $891 million, representing 55% of total equity [1] - The portfolio expanded by 25% since the end of the first quarter, increasing from $11 billion to $14 billion [2] Market Conditions - The company benefited from a supportive policy environment, allowing for increased leverage while maintaining robust liquidity [4] - Mortgage spreads remain historically wide, contributing to the attractiveness of agency MBSs [5][6] Strategic Focus - Management emphasizes continued capital deployment into agency MBSs and maintaining sufficient liquidity for further portfolio growth [7] - Long-term value creation is anchored in high-quality, liquid asset exposure and flexible leverage according to market opportunities [8]

Financial Highlights - AGNC Investment Corp. reported a tangible net book value per common share of $7.81 as of June 30, 2025, a decrease of 5.3% from $8.25 as of March 31, 2025 [7] - The company's investment portfolio totaled $82.3 billion, with 96% consisting of 30-year fixed-rate Agency MBS and TBA securities [8] - The economic return on tangible common equity for the second quarter was -1.0%, comprising $0.36 in dividends per common share and a $(0.44) decline in tangible net book value per common share [6][9] Management Remarks - The company's President noted that financial markets experienced significant repricing due to governmental policy risks, leading to increased interest rate volatility and negative investor sentiment [5] - Despite most asset class valuations recovering, Agency MBS underperformed, resulting in wider spreads to benchmark rates during the second quarter [5] Investment Portfolio - As of June 30, 2025, the weighted average coupon for fixed-rate Agency MBS and TBA securities was 5.13%, up from 5.03% as of March 31, 2025 [8] - The company maintained a substantial liquidity position of $6.4 billion in unencumbered cash and Agency MBS, representing 65% of its tangible equity [6] Leverage and Risk Management - The tangible 'at risk' leverage ratio was 7.6x as of June 30, 2025, compared to 7.5x as of March 31, 2025 [20] - The company issued 92.6 million shares of common equity through At-the-Market offerings, raising net proceeds of $799 million [9] Income and Expenses - The company recognized net spread and dollar roll income of $0.38 per common share for the second quarter, down from $0.44 per common share in the prior quarter [17] - Interest income for the second quarter was $830 million, while interest expense was $668 million, resulting in a net interest income of $162 million [32] Other Comprehensive Income - The company recorded other comprehensive income of $48 million, or $0.05 per common share, during the second quarter, compared to $93 million, or $0.10 per common share, in the prior quarter [28]

Financial Performance - The company's portfolio fair value is $142 billion[13], with a stock return of 4656% since IPO (dividends reinvested)[14] - The company's market capitalization is $15 billion[14] - The annualized dividend yield is 167%[14] - Average earning assets were $114 billion in Q2 2025, compared to $103 billion in Q1 2025[24] - Book value per common share decreased from $1256 in Q1 2025 to $1195 in Q2 2025[24] - Leverage increased from 74x in Q1 2025 to 83x in Q2 2025[24] - Comprehensive loss per common share was $(011) in Q2 2025, compared to a comprehensive income of $016 in Q1 2025[24] Portfolio Composition - Approximately 96% of the company's portfolio is in Agency RMBS[13] - As of June 30, 2025, Agency RMBS pools constitute 701% of the total portfolio, while Agency RMBS TBA constitute 259%[83] - Agency CMBS and CMBS IO constitute 40% of the total portfolio[85] Macroeconomic Themes and Strategy - The company employs a global, top-down macroeconomic approach to inform risk management and protect investor value[10] - Key macroeconomic themes include global power shifts, government policy, fiscal policy, Fed policy, system liquidity, and demographics & tech[33, 34, 35, 36, 37, 38] - The company is positioned to generate income and drive value through opportunistic investing and diversification[73]