New York Mortgage Trust Inc. New (NYMT, Financial) filed Quarterly Report for the period ended 2010-06-30.
New York Mortgage Trust Inc. New has a market cap of $60 million; its shares were traded at around $6.37 with a P/E ratio of 5.3 and P/S ratio of 1.9. The dividend yield of New York Mortgage Trust Inc. New stocks is 11.3%.NYMT is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Financing markets and liquidity. The actions of the Federal Reserve and the U.S. Treasury, starting in 2008, have stabilized the financing and liquidity environment for Agency RMBS. The liquidity facilities created by the Federal Reserve during 2007 and 2008 and its lowering of the Federal Funds Target Rate to 0 – 0.25% have lowered our financing costs (which most closely correlates with the 30-day LIBOR) and stabilized the availability of repurchase agreement financing for Agency RMBS. The 30-day LIBOR, which was 0.32% as of July 27, 2010, has remained relatively unchanged since December 31, 2009. The Federal Reserve has continued to reaffirm its plan to hold the Fed Funds Rate near zero percent. While we expect interest rates to rise over the longer term, we believe that interest rates, and thus our financing costs, are likely to remain at these historically low levels until such time as the economic data begin to confirm a sustainable improvement in the overall economy.
Prepayment rates. As a result of various government initiatives, including HASP, HAMP and the reduction in intermediate and longer-term treasury yields, rates on conforming mortgages continue to be historically low. While these trends have historically resulted in higher rates of refinancing and thus higher prepayment speeds, we have observed little impact from refinancing on the CPR for our portfolio. However, and as discussed above, the CPR on our RMBS portfolio was negatively impacted during the six months ended June 30, 2010, and in particular, during the three months ended June 30, 2010, by repurchase programs implemented by Freddie Mac and Fannie Mae as discussed above. See “– Summary of Operations – Prepayment Experience” below. We expect Agency speeds to return to a more normal range of 18% to 22% in the third quarter of 2010 on our portfolio of RMBS as delinquent loan buybacks by Fannie Mae and Freddie Mac decline from the rate of buybacks observed in the 2010 second quarter
Financing. During the quarter ended June 30, 2010, we continued to employ a balanced and diverse funding mix to finance our assets. At June 30, 2010, our Agency RMBS portfolio was funded with approximately $60.3 million of repurchase agreement borrowing, which represents approximately 16.1% of our total liabilities, at a weighted average interest rate of 0.31%. The Company s average haircut on its repurchase borrowings was approximately 5.7% at June 30, 2010. As of June 30, 2010, the loans held in securitization trusts were permanently financed with approximately $241.1 million of CDOs, which represents approximately 64.5% of our total liabilities, at an average interest rate of 0.73%. The Company has a net equity investment of $9.4 million in the securitization trusts as of June 30, 2010.
Prepayment Experience. The CPR on our overall mortgage portfolio averaged approximately 20.5% during the three months ended June 30, 2010, as compared to 18.6% for the three months ended March 31, 2010. CPRs on our purchased portfolio of RMBS for the three months ended June 30, 2010 were adversely impacted by the Freddie Mac and Fannie Mae delinquent loan buyback programs announced in the 2010 first quarter and averaged approximately 36.3%, as compared to 14.9% for the three months ended March 31, 2010. The CPRs on our mortgage loans held in securitization trusts averaged approximately 11.9% during the three months ended June 30, 2010, as compared to 20.9% for the three months ended March 31, 2010. When prepayment expectations over the remaining life of assets increase, we amortize premiums over a shorter time period, which results in a reduced yield to maturity on our investment assets. Conversely, if prepayment expectations decrease, the premium is amortized over a longer period resulting in a higher yield to maturity. We monitor our prepayment experience on a monthly basis and adjust the amortization of our net premiums accordingly.
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New York Mortgage Trust Inc. New has a market cap of $60 million; its shares were traded at around $6.37 with a P/E ratio of 5.3 and P/S ratio of 1.9. The dividend yield of New York Mortgage Trust Inc. New stocks is 11.3%.NYMT is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Investment in New Bridger Holdings LLC. In May 2010, the Company closed on an investment of up to $750,000 in senior secured notes (the “Bridger Notes”) issued by New Bridger Holdings LLC (“New Bridger”), the parent company of Bridger Commercial Funding LLC (“Bridger”). The Bridger Notes bear interest at 15% per annum (on the unpaid principal amount) and will mature in May 2010, at which time the unpaid principal and interest must be repaid. Bridger is a 12-year old firm specializing in originating and funding commercial mortgages primarily through a nationwide network of commercial banks. Bridger includes its loans in larger securitization pools resulting in the issuance of both investment and non-investment grade CMBS. As part of the transaction, the Company also received warrants to acquire Class C units equal to up to 25% of the fully diluted equity interests of New Bridger. In addition, the Company has an option to purchase an additional 23% of the fully diluted equity interests of New Bridger.Financing markets and liquidity. The actions of the Federal Reserve and the U.S. Treasury, starting in 2008, have stabilized the financing and liquidity environment for Agency RMBS. The liquidity facilities created by the Federal Reserve during 2007 and 2008 and its lowering of the Federal Funds Target Rate to 0 – 0.25% have lowered our financing costs (which most closely correlates with the 30-day LIBOR) and stabilized the availability of repurchase agreement financing for Agency RMBS. The 30-day LIBOR, which was 0.32% as of July 27, 2010, has remained relatively unchanged since December 31, 2009. The Federal Reserve has continued to reaffirm its plan to hold the Fed Funds Rate near zero percent. While we expect interest rates to rise over the longer term, we believe that interest rates, and thus our financing costs, are likely to remain at these historically low levels until such time as the economic data begin to confirm a sustainable improvement in the overall economy.
Prepayment rates. As a result of various government initiatives, including HASP, HAMP and the reduction in intermediate and longer-term treasury yields, rates on conforming mortgages continue to be historically low. While these trends have historically resulted in higher rates of refinancing and thus higher prepayment speeds, we have observed little impact from refinancing on the CPR for our portfolio. However, and as discussed above, the CPR on our RMBS portfolio was negatively impacted during the six months ended June 30, 2010, and in particular, during the three months ended June 30, 2010, by repurchase programs implemented by Freddie Mac and Fannie Mae as discussed above. See “– Summary of Operations – Prepayment Experience” below. We expect Agency speeds to return to a more normal range of 18% to 22% in the third quarter of 2010 on our portfolio of RMBS as delinquent loan buybacks by Fannie Mae and Freddie Mac decline from the rate of buybacks observed in the 2010 second quarter
Financing. During the quarter ended June 30, 2010, we continued to employ a balanced and diverse funding mix to finance our assets. At June 30, 2010, our Agency RMBS portfolio was funded with approximately $60.3 million of repurchase agreement borrowing, which represents approximately 16.1% of our total liabilities, at a weighted average interest rate of 0.31%. The Company s average haircut on its repurchase borrowings was approximately 5.7% at June 30, 2010. As of June 30, 2010, the loans held in securitization trusts were permanently financed with approximately $241.1 million of CDOs, which represents approximately 64.5% of our total liabilities, at an average interest rate of 0.73%. The Company has a net equity investment of $9.4 million in the securitization trusts as of June 30, 2010.
Prepayment Experience. The CPR on our overall mortgage portfolio averaged approximately 20.5% during the three months ended June 30, 2010, as compared to 18.6% for the three months ended March 31, 2010. CPRs on our purchased portfolio of RMBS for the three months ended June 30, 2010 were adversely impacted by the Freddie Mac and Fannie Mae delinquent loan buyback programs announced in the 2010 first quarter and averaged approximately 36.3%, as compared to 14.9% for the three months ended March 31, 2010. The CPRs on our mortgage loans held in securitization trusts averaged approximately 11.9% during the three months ended June 30, 2010, as compared to 20.9% for the three months ended March 31, 2010. When prepayment expectations over the remaining life of assets increase, we amortize premiums over a shorter time period, which results in a reduced yield to maturity on our investment assets. Conversely, if prepayment expectations decrease, the premium is amortized over a longer period resulting in a higher yield to maturity. We monitor our prepayment experience on a monthly basis and adjust the amortization of our net premiums accordingly.
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