Interest Rates ImpactThe increase in the 10-Year Treasury note yield and the widening spread of Agency MBS over Treasuries following a hawkish CPI print suggests higher borrowing costs and potential valuation pressure on mortgage REITs.
Investment RisksInvestment risks include challenges in maintaining adequate access to funding and managing interest rate, credit, and asset/liability mismatch risks.
Monetary Policy And Market ConditionsMortgage spreads have widened due to monetary policy uncertainty and rising geopolitical risk, negatively impacting the tangible book value per share.