morning, and welcome Thank Good you, our call. Purvi. to everyone,
critical themes on months decade the year. we approach this As final the start I provide update and commentary the the we at to some reiterate, of and XXXXs, this enter of of two want highlighted
volatile we markets To flashing fourth recession in fiscal, with curve there to recap will the quarter our was "An call our in yield little compressed we’ve trade red on monetary and second on an data, quarter I able political a February, economic return project more combination contribute I in our pressures been to and economic, a inflation long for toward "Deteriorating in earnings resulting the obvious across and time." call then possibility The ratings and lights macro been signaling unresolved and policy credit apparent commented summer that flattening of call differentiation May America." stated that in shift weak "There a accommodative On of of global earnings spreads, remarked, followed risk." XXXX July, has growing corporate of outlook
Annaly This we say prior environment cut challenging Fast that to give the numerous top the that served certainly you five. forward on preview, to my has to a for commentary which reasons. day. provoked Fed later has for following quarter for can embark its third market first improved the now today, rate I’ll
five, by repo First still. actions lower an spread improving yields. asset four, as market. Fed’s York pre-payments recent additional outlook to lower funding end. LIBOR three, the expected quarter Number And commitment costs Number tailwind. repo the two, stabilize going better of slowing New for and the Number number
uniquely there finish visibility next as positioned on increased the and backdrop $X.XX. conditions policy visibility, decade. capitalize quarter we Annaly this are and enhanced more and to year this dividend of themes, of expanding market, Because which and significant and we five favorable the industry, this market of corporate reaffirm Against is enter
theme this necessitates the of to in and which is administration’s private additional theme clearly We’ve shrinkage past GSE the overtime. further the the we But quarter, the U.S. view this need for capital first private a housing shift evolution, The clarity discussed GSE gained market. about market.
Treasury’s While in critical how Freddie XXXX private Finance September, Housing the Fannie may form of will to it component capital future highlights Reform take. and and housing Plan published finance, integral remain the will a be whatever system
Annaly market, exposure. an XX% private since now residential participant balance issuance transferred To-date GSE’s $XX in active treatment efforts The billion, statutory private the FHFA, leading are consistent which excess XXXX since purchasing the level the capital of absorbed market mission. assess, capital in the has is align good with the roughly playing on for infancy of time $X.X for in that period. billion of GSEs and which in trillion prototype regulatory risk to unpaid of to $X.X now principal has market is and CRT been credit is program’s CRT field a products
several evolve asset In to finance. increase classes continues we market order anticipate the to level ensure remains housing and volumes to market U.S. robust, in private overtime we
last supply potential doubled match over the expect years business three in advantage credit growing and a rate year upcoming residential over to of structures next we growth taking Our has by new that the and market.
clear effects that could What further shrinkage market. are on have has the also GSE secondary become the recently more
many year. an and Fannie had last to XX% housing reduced affordable increase into collective home year, ownership of Americans. since this footprint, is XX% their of As already while move for Freddie unaffordable homeowners
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across now the country, the finance of while Our housing business built several pillars is supporting related to economy.
loans homes the in extended with borrowers less are financing over We country, price. loan balance lower nation’s have typically mortgages over than to XXX,XXX billion the $XX that totaling half average
to self-employed channels, billion totaling $X.X credit-worthy also have borrowers may to bank financed access We have over who borrowers. including loans not over traditional X,XXX
without into low our Capital through nearly billion economic healthcare, of portfolio invested groceries have Impact affordable investments $X Partners. and and education, such areas opportunity, low-income sectors more JVs With retail access with shrinking of in our areas other legislative its housing, growth of and is we Lastly, a contributor as and GSEs decade private affordability capital continue Annaly undoubtedly footprint as next the of housing maintain to system. the reform finance significant and the to is liquidity poised the to the U.S.
mortgage business altered and commercial Annaly models opportunity residential regulatory other activity liquidity and due businesses. sector, reform. long-term is of which shrinking to GSEs The trends lending significant is second various through Parallel banks the transformation and their hold experienced Leverage shifted product the to also the for banks to constraints have banking players.
three example, and GSE twice GSE just As decreased banks out have six eligible ago. years footprint one loans that originally only to compared an share of their every now
financial certain the Anecdotally, in characterized business other large their mortgage banks markets under U.S. today dominant in now income once statements. the
As capital other of lower, and strategic non-banks market. origination agency banks, of is mortgage-related up void. from Annaly. exposure These mortgage XX% of such originators trends XXXX, to in non-bank’s XX% stepped have are share originators and partners the to growing as total Since fill non-banks the
how I leverage the has redistribution new played terms theme real-time the corporate differentiation out credit for and growth and sponsors of to private partnering XXXXs, with of in a The role needs of land and environment. equity in wanted private to partners. equity safely in this of third structural out system market, the amount in Our depreciating banks in of of some the provide examples growing risk, with we’re invest balancing leverage lack huge the
nearly capital simply we’re strategies, scale on diversified in less portfolios the the major credit, focused $XXX participated the private million this competitive equity our Real several of Within sponsor, deal $XXX the million Blackstone larger Commercial year-to-date. volume right month, large on for Estate contributing liquidity. Group, our our for firms, approximately deals for financings established Group and given Annaly structure the sourcing right right to Within just has in strong place selecting relationships including of
Our in XX% existing is has that X business assets this Notably, through which our the million was in Residential lastly proprietary nearly business sponsors. And our of partnerships. efficiently tier Credit approximately competing up average two $XXX year, of has middle-market years. lending size deal past repeat team with top times originated team
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Finally, we very competitive leverage our all producing of three are returns across credit using conservative businesses.
XX.X%, our focus For credit $X a leverage. on the billion capital levered weighted theme only generated and expertise, quarter, of using operating return times X.X The a efficiency, is of third financing optimization. combination of fourth average investments overall
and beyond Annaly decade already efficiency. next operational the built For with has
in efficiently as the in investment outlined. the paid the have We just forward. redistribution assets Company’s invest to in it of I infrastructure The future
the Out growth while the and the GSEs, banks, alongside of equity. private of Fed, the investing
businesses that our our additional capital total fee for infrastructure. in to of Now added raised of XX additional have a have four basis management reduced reached partnerships we’ve institutional successfully XX lieu points scale, paying and for
our businesses. operating four incomparable have leverage in We
that cap of on mortgage average have companies market nearly expense companies aggregate of X% XX% operating XXX and percent for as an management a to Our only trillion. is equity the $X.X asset REITs, compared insurance banks,
times models With these average asset against. we we our efficient investor XX these more compete are all on other in classes ratios, over across
structure and additional through securitizations. and capital activities, our financing Regarding alternatives refined capital optimization, we capital financing markets
late in over and These repeatedly of We the in August book repurchased we stock. million our fourth diligent resulted economic real capital. shareholders. created evaluation into shares, Beginning accretion in immediate $XXX value of demonstrated and quarter, for return of taking advantage have allocation repurchases
differentiated to Our approach our repurchase the markets. program emphasizes capital
mortgage book it XX% similar back buying shareholders. REIT offerings the others stock dilutive Believe in or are are issuing completed We sector quarter equity the were below to levels in of not, valuation stock at third that the value.
highlight be market Finally, Annaly and in the theme responsibility where I ESG. continues decade, market for to corporate to another leader, next want and today’s significant a
inclusion healthy world. over on which focus and a culture, made and Specifically, all to debate, from talent has open of fostered by our enriched experiences up the broad is diversity
voice validates present lower invited in and of to Merrill through or our on higher outperform I extensive volatility. more our that positions whom least research businesses Savita an half this our who illustrated equity earnings Subramanian, and in XX% to our future a of in have – have our from commitment represented ESG returns effort since leadership across long-term. invited we study firm at XX% as Lynch, to in leadership to an by with year, leading just diversity women we board we than racially identifying price over the female CEO additions organization diverse, women became to With
in made we’ve always our of XX% Board are XX% Annaly’s a of XX% our female of the data is women, as of XXXX are validated the almost XX these responsibility and oriented new of striving of are since additional hires XX% increase and and XXXX. funds Committee areas efforts we diversity. an few Shareholders have demonstrated originally to in Annaly, corporate Directors points ESG identified as now finally, diverse. by our employee which illustrate improve, XX own While women Operating
helps the which visible Finally, opportunities tangible heading, the we to is are by make our direction encouraged market today. more and
U.S. and forward will to the As owners beyond. industry a for the and solution this in of monetary business capital real in country, redistribution market, next the across opportunities asset commercial that decade estate provided and look housing the be next private phase policy the we
Now I’ll Finkelstein. David to over call turn the
