Atlanta, Georgia – Invesco Mortgage Capital Inc. held its Q1 2024 Earnings Conference Call on May 9, 2024. During the call, company executives provided insights into the financial performance and market dynamics impacting the firm’s investments, specifically focusing on the agency mortgage sector.

John Anzalone, CEO of Invesco Mortgage Capital, highlighted the challenges and opportunities faced by the company in the first quarter. He discussed the impact of higher interest rates on the yield curve, driven by inflation and strong economic data. Despite the market adjustments, the company reported a positive economic return of 4.8% for the quarter, with a focus on agency mortgages and credit assets.

Brian Norris, Chief Investment Officer, delved into the details of the company’s investment portfolio and outlined the changes made during the quarter. He discussed the performance of agency RMBS and Agency CMBS, highlighting the benefits of diversifying risks in the portfolio. Norris also shared insights on funding costs, asset yields, and the company’s leverage position at the end of the quarter.

During the question-and-answer session, analysts raised inquiries about the supply of prepay-protected specified pools, the variability of prepayment rates across different coupon levels, and the company’s outlook on dividend sustainability amidst changing interest rate scenarios. Executives provided detailed responses, emphasizing the company’s cautious approach to leverage and its focus on interest rate volatility in decision-making.

Overall, the conference call provided investors and analysts with valuable insights into Invesco Mortgage Capital’s performance, investment strategy, and outlook for the future. The company remains optimistic about its positioning in the market, with a focus on navigating mortgage market volatility and capitalizing on investment opportunities in the agency mortgage sector.