The conference call will be webcast live and accessible online in the News & Events section of the company's website at www.twoinv.com. For those unable to attend, a replay of the webcast will be available on the company's website approximately four hours after the live call ends. Webcast Details NEW YORK--(BUSINESS WIRE)--TWO (Two Harbors Investment Corp, NYSE: TWO), an MSR-focused REIT, announced today that it will release financial results for the quarter ended December 31, 2025 after market close on Feb ...

Core Viewpoint - Annaly Capital Management offers a significantly high dividend yield, exceeding 10 times that of the S&P 500, due to its legal obligation to distribute 90% of its taxable income as dividends [1][6]. Group 1: Company Overview - Annaly Capital Management operates as a mortgage REIT, investing in Agency mortgage-backed securities, non-agency residential mortgages, and mortgage servicing rights, which typically yield low-risk, fixed-rate returns [3]. - The company utilizes leverage to enhance returns, currently achieving double-digit yields across its investment strategies [3]. Group 2: Financial Performance - In the third quarter, Annaly reported earnings available for distribution (EAD) of $0.73 per share, an increase from $0.66 per share in the same quarter last year, comfortably covering its dividend payment of $0.70 per share [4]. - The EAD for Annaly was consistent, with $0.73 per share in the second quarter and $0.72 per share in the previous two quarters, allowing for a dividend increase from $0.65 per share earlier this year [4]. - Historical EAD figures for 2022 ranged from $0.89 to $1.22 per share, supporting a quarterly dividend of $0.88 per share [5]. Group 3: Dividend Policy - Annaly is legally required to distribute nearly all of its taxable net income as dividends, which results in its high yield, but this payout is subject to fluctuations based on earnings [6].

Core Viewpoint - UWM Holdings Corporation is set to acquire Two Harbors Investment Corp in an all-stock transaction valued at $1.3 billion, aimed at enhancing profitability and operational efficiency for both companies [1][2]. Transaction Overview - The merger will be executed at a fixed exchange ratio of 2.3328 shares of UWMC Class A Common Stock for each share of TWO common stock, equating to a value of $11.94 per share for TWO [10]. - Upon completion, UWM shareholders will own approximately 87% of the combined entity, while TWO shareholders will hold about 13% [10]. Strategic Benefits - The acquisition is expected to nearly double UWM's mortgage servicing rights (MSR) portfolio to approximately $400 billion, significantly increasing recurring revenues [3]. - UWM anticipates annual cost and revenue synergies of around $150 million, contributing to earnings growth [3]. - The combined company will rank as the 8th largest servicer nationwide, enhancing its market position [9]. Operational Enhancements - UWM will gain expanded servicing expertise and scale, facilitating the in-house servicing transition [3]. - The merger will leverage TWO's capital markets expertise alongside UWM's operational scale to improve financing and hedging efficiencies [9]. Leadership and Governance - The transaction has received unanimous approval from the Boards of Directors of both companies and is expected to close in the second quarter of 2026, pending stockholder and regulatory approvals [11]. - The Board of the combined company will expand to eleven directors, including one designated by TWO [10]. Market Context - The merger reflects a growing trend in the mortgage industry where scale is increasingly critical for success [5]. - Both companies share a commitment to innovation and modernization in financial services, aiming to empower mortgage brokers and consumers [6].

Company Strategy & Performance - Chimera Investment Corp is a hybrid mortgage REIT focused on diversified investment solutions across the mortgage credit product spectrum[10, 13] - The company reported earnings available for distribution of $039 per share[19] - Book value per share was $2091, a 12% decrease from the previous quarter[22] - Economic return for the quarter was 05%[19, 22] HomeXpress Acquisition - Chimera entered into a definitive agreement to acquire HomeXpress Mortgage Corp, expected to close in Q4 2025[11, 21, 22] - The acquisition consideration includes cash equal to HomeXpress's book value plus a $120 million premium and 2,077,151 shares of CIM common stock[22] - HomeXpress has originated over $107 billion in loans since 2016[25, 27] - HomeXpress generated $47 million in pre-tax earnings in 2024[27] Portfolio Composition & Activity - The company purchased $19 billion in notional Agency pass-throughs, with an additional $402 million settling in Q3[22] - Recourse leverage increased to 18x from 12x in Q1 due to growth in Agency RMBS allocation[22] - Loans under third-party asset management grew 43% year-over-year to $254 billion[57, 58]

Summary of PennyMac Mortgage Investment Trust (PMT) 2025 Conference Call Company Overview - **Company**: PennyMac Mortgage Investment Trust (PMT) - **Date**: June 03, 2025 - **Key Partner**: PennyMac Financial Services, Inc. (PFSI) Core Strategies 1. **Credit Sensitive Strategies** - Focus on mortgage investments primarily exposed to credit risk, particularly subordinate pieces of securitizations [2][3] - Current focus on generating new securitizations of high credit quality loans, comprising about 15% of PMT's total equity [3][4] 2. **Interest Rate Sensitive Strategies** - Investments sensitive to interest rate changes, with a sophisticated hedge program to mitigate risks [4][5] - Mortgage servicing rights (MSRs) make up approximately 45% of PMT's total equity, benefiting from lower prepayment sensitivity due to their origination in 2020-2021 [20][21] 3. **Correspondent Aggregation** - Aggregation of loans from smaller originators, with a focus on both agency-eligible and non-agency loans [6][8] - PMT collaborates with PFSI to adjust correspondent activity based on capital availability and objectives [7] Financial Metrics - **Total Equity**: Approximately $1.9 billion, with $1.3 billion in common equity [9] - **Total Assets**: About $15 billion, with $3 billion in non-recourse debt [10] - **Monthly Securitization Size**: Ranges from $300 million to $400 million, retaining $25 million to $30 million of first loss pieces [12][13] Market Position and Competitive Landscape - PMT is capturing significant market share in the investor and second home collateral space, with one main competitor in non-agency deals [18] - The prime jumbo space is more competitive, with higher origination activity and more players involved [19] Risk Management - PMT employs a dual-pronged risk management strategy focusing on interest rate hedging and stable funding sources [25][28] - The company maintains a mid-single-digit leverage ratio and utilizes non-mark-to-market debt to avoid forced asset sales during market downturns [29][30] Dividend Policy - PMT has maintained a stable dividend of $0.40 per share, reflecting confidence in future earnings potential from both interest rate sensitive and credit sensitive strategies [31] Additional Insights - The company is not currently focused on significantly growing its MSR portfolio, preferring stability and predictability in cash flows [22] - The overall return expectations for interest rate sensitive strategies are currently lower due to an inverted yield curve, but there is potential for improvement if the curve steepens [23][24]

Core Insights - Arbor Realty Trust (ABR) reported a revenue of $240.69 million for the quarter ended March 2025, reflecting a decline of 25.1% year-over-year [1] - The earnings per share (EPS) for the quarter was $0.28, down from $0.47 in the same quarter last year, representing a surprise of -20.00% against the consensus estimate of $0.35 [1][4] - The reported revenue was also below the Zacks Consensus Estimate of $244.25 million, resulting in a surprise of -1.45% [1] Financial Performance Metrics - Interest income was reported at $240.69 million, compared to an average estimate of $243.16 million, marking a year-over-year decrease of 25.1% [4] - Other revenue from gain on sales, including fee-based services, was $12.78 million, exceeding the average estimate of $11.74 million, but down 23.3% year-over-year [4] - Revenue from mortgage servicing rights was $8.13 million, slightly below the average estimate of $8.45 million, with a year-over-year decline of 20.3% [4] - Total other revenue was reported at $58.72 million, surpassing the average estimate of $53.80 million [4] - Servicing revenue, net, was $25.60 million, below the average estimate of $29.89 million, reflecting an 18.8% decrease year-over-year [4] - Property operating income was reported at $4.39 million, significantly higher than the average estimate of $2.42 million [4] - Net interest income was $75.44 million, slightly above the average estimate of $74.09 million [4] - Other income was reported at $4.42 million, exceeding the average estimate of $1.57 million, with a year-over-year increase of 89.4% [4] - The diluted net earnings per share was $0.16, compared to the average estimate of $0.19 [4] Stock Performance - Shares of Arbor Realty Trust have returned -5.5% over the past month, while the Zacks S&P 500 composite experienced a -0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: High-Yield Dividend Stocks - AGNC Investment and Annaly Capital are mortgage REITs offering an average yield of 13.2%, requiring an investment of $7,580 for $1,000 in annual dividend income [1] - AGNC Investment has a current yield of 14.2%, while Annaly Capital offers a yield of 12.2% [3][7] Group 2: Company Operations and Financials - AGNC Investment borrows at low short-term rates to invest in long-term mortgage-backed securities, with a significant increase in average cost of funds by 373% to 2.89% over two years [4] - Annaly Capital's portfolio is 87% invested in agency-backed securities, with a diversified revenue stream including a residential credit operation that securitized $11 billion in loans in 2024 [8] - In Q4 2024, Annaly's average cost of interest-bearing liabilities decreased to 3.79%, resulting in a net income of $0.78 per share, supporting a quarterly dividend of $0.72 [10] Group 3: Market Concerns - Both AGNC and Annaly face pressure from fears of inflation due to a potential trade war, which could lead to increased interest rates [4][7] - AGNC's stock price has declined by approximately 47.6% since its debut in 2008, but it has provided a total return of 470% through dividends [6]