Increase in Book Value
Book value per common share increased by 4.5% to $8.41 at the end of the quarter, resulting in a positive economic return of 8.7% for the quarter.
Decrease in Interest Rate Volatility
Interest rate volatility declined notably, providing a supportive environment for risk assets, particularly Agency RMBS.
Improved Capital Structure
Leverage increased slightly with a debt-to-equity ratio of 6.7, and $36 million was raised by issuing common stock through the ATM program.
Positive Agency CMBS Performance
Agency CMBS risk premiums declined quarter-over-quarter as investor demand increased, providing attractive risk-adjusted yields.