Q1 2025 Invesco Mortgage Capital Inc Earnings Call Transcript
Key Points
- Invesco Mortgage Capital Inc (IVR) reported a positive economic return of 2.6% for the first quarter of 2025.
- The company maintained a stable funding market for its assets, with haircuts unchanged and one-month repo spreads remaining between SOFR plus 15 basis points to 18 basis points.
- Invesco Mortgage Capital Inc (IVR) increased its agency RMBS portfolio by 9.5% quarter-over-quarter, focusing on higher coupon agency RMBS, which are expected to benefit from a decline in interest rate volatility.
- The company successfully reduced its leverage ratio from 7.1 times debt to equity to the mid-6s, reflecting a cautious approach amidst market volatility.
- Invesco Mortgage Capital Inc (IVR) maintained a robust financing capacity for its agency CMBS purchases, with multiple counterparties at attractive levels.
- The company's book value per common share declined in April, with an estimate for April 30th between $7.74 and $8.06.
- Agency mortgages significantly underperformed treasuries due to increased interest rate volatility and risk asset sell-offs.
- Swap spreads tightened significantly, negatively impacting the company's book value.
- The company remains cautious on agency mortgages in the near-term due to elevated interest rate volatility and continued policy uncertainty.
- Invesco Mortgage Capital Inc (IVR) sold its remaining credit investments and is now 100% agency, indicating a lack of interest in adding credit exposure in the current environment.
Welcome to the Invesco Mortgage Capital First Quarter 2025 Earnings Call. All participants will be in a listen-only mode until the question-and-answer session. (Operator Instructions) As a reminder, this call is being recorded.
Now, I would like to turn the call over to Greg Seals in Investor Relations. Mr. Seals, you may begin the call.
Thanks, operator, and to all of you joining us on Invesco Mortgage Capital's quarterly earnings call. In addition to today's press release, we have provided a presentation that covers the topics we plan to address today. The press release and presentation are available on our website, invescomortgagecapital.com. This information can be found by going to the investor relations section of the website.
Our presentation today will include forward-looking statements and certain non-GAAP financial measures. Please review the disclosures on Slide 2 of the presentation regarding these statements and measures as well as the appendix for the appropriate
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