OUR MODEL
The pillars of our investment strategy.
Our focus is on investing in, managing and growing a diversified portfolio of mortgage servicing rights (MSRs) and residential mortgage-backed securities (RMBS) to provide investors with attractive risk-adjusted total returns and opportunities for capital appreciation.
Servicing-Related Assets Acquisition
Selectively acquire Mortgage Servicing Rights (or MSRs) through flow or bulk purchases with mortgage servicers.
Agency RMBS Acquisition
Opportunistically acquire and manage Agency Residential Mortgage Backed Securities (or RMBS) on a leveraged basis.
Non-Agency RMBS Acquisition
From time to time, purchase fixed and floating-rate tranches of non-agency assets (e.g. RMBS backed by jumbo, non-qualified mortgages, etc.).
Hedging & Risk Management
Attempt to mitigate our prepayment, interest rate and, to a lesser extent, credit risk by using a variety of hedging instruments and, where available and applicable, recapture agreements, enabling us to preserve book value in times of volatility.
Agility across markets.
Our investment strategy has been and will continue to be adaptable to changing market environments, enabling us to preserve book value.
Our investment and portfolio management decisions, as well as our targeted asset classes, may vary over time in response to market conditions.
Risk management practices.
Leveraging various hedging strategies, we attempt to mitigate interest rate, duration, basis and pricing risks that can impact our portfolio.
We may utilize certain derivative financial instruments and other hedging instruments that include:
Interest rate swaps (floating-to-fixed, fixed-to-floating, or more complex swaps such as floating-to-inverse floating, callable or non-callable)
Swaptions, caps, floors and other derivatives on interest rates
TBAs
U.S. treasury securities
Futures and forward contracts
CMOs