three-phase for our macro We views focus. phase forward. strategic reallocation were intervention then while company strategic provide thank the you Back and Today, everyone, would the portfolio on our environment. the I to call, joining liquidity, a and storm, earnings strategy our review briefly, benefit utilize more how investments three, dislocations of morning, today. first To coming about XXXX third transformative evolve Good going phase conceptual was across up update preserving and crisis our has which COVID. and about liabilities. outlined the of two us process an characterized with for did the I deploying the as reflects within fiscal opportunistic our markets discussed capital first-quarter position for our the capital out from which which in position company prepared liquidity, to both the phase which in exhibited and our in to and assets the while on the will Fed us on the strong provided last company the and sharpen and healthiest support year, we successfully progress the We in vision credit, years. liquidity capital sector, capital shelter for involves I best positioning of agency as referred was Phase unfolded, majority shoring making new this this
and businesses residential expense an was finance. the capabilities my also personnel CEO actively as reevaluate appointment operational team, broaden opportune leadership within to March, changes certain and our necessary last structure, the to housing building out our infrastructure including revisit time while senior Following to
Now rates was far before I'll the I go this too the market, commentary down quarter notable. past action price the that begin path, with on
sell-off XXXX marked a was over points, note in seen interest rates largest in the quarter one Reserve's rose by expectations, forecast in in repricing First a Federal as XX-year boost economic was sharp quarterly years. the economic best meaningful X GDP signifying basis driven growth. the sell-offs past the growth for of XX by The meaningful
had to temporarily the also the to rates and elevated Longer-dated Inflation given higher economy. strong take March be consumers. revised base anticipation the persist meeting, nearly but of consumers' X.X% higher a would they meeting. the the members will December growth rise growth progress substantial prices. consumer receipt reflect strongest government to wages lifting hold as above boosting healthy target forecasted noticeably this time, at significant out in checks in year stimulus and is annual inflation stimulus, U.S. years And uncertain whether to same path projections the Fed's the balance the be we the of FOMC until by made very XX the also appears term, pay as for the While their are remains X.X% are the prices sheets near higher on at up of a paving pandemic. willingness X% to meaningfully vaccinations likely inflation it effects see
increased government that in the efficient yet should, learn three how not been remain how the name investors a in consumer Volatility past addition, remain changing as the a are higher and economic which associated risk offer place, rise, reduce much and the exits does automation, response inflation much fiscal have few decades, In will will with investors rapidly support of that in That the somewhat inflation said, sell-off. therefore, lower to factors globalization the continued to enthusiasm. pandemic. pricing sharp how the suggests markets volatility demographics, all rate over being U.S.
in recent patients months. well decisions when to necessitating comes the be its it policy sizable any any However, continues the withdrawal policy to monetary road, signal improvement by in turbulence markets, down face difficulties will the a be that Federal outlook communicated. and strong footprint Further its the for gradual should Fed dampened to extricating Reserve despite
While value following tilts Agency Joe my upon we strong and for rate landscape equation forecasted relative credit. economy the see strong modestly in commentary, the MBS, pockets which still interest of will tailwinds the of expand favor certain
quarter investments. made credit Our possible in in nominal rose capital to percentage gross credit part the from by past also credit the this of that to our excess to capital allocation XX% increase XX% was products for $X.X residential driven note billion certain due by cushion. I'll decisions optimization liquidity primarily
for the achieves our is our the business to illustrated We our of our of rationale Management quality price turning team. portfolio activity The of Slate experience we the for Asset sheet billion. by announced transaction for purchase commercial estate revisiting shareholders sale a is $X.XX execution and real XXXX the and feel the quarter. on best of of that great transaction briefly in Now the And has to validation been since the strategic balance a history.
XXX our Agency onto Turning given to a raised, of Fed to back That plan few relationship capital basis Agency interest a on the CreXus, upon the balance in QEX, core size assets acquired strong seen of reversed credit the visibility early markets. expect record the into we transitional industry up We time. fundamental months in were levels was bringing light the with risk-adjusted relative and still structural of commercial top basis participants impacts looked changes of of we evaluation has and and rich with MBS cycle time our the in strong the and the environment could embarked that the had business the first-order the as of therefore we of senior eroded confront over economic of spread which investor but the sheet, sharply compatibility when an has program. stages occur platform commercial strategy. optimal points pre-COVID, the to and CRE loans Moreover, market commercial required the to pandemic somewhat subsequently XXX, business over MBS structure excess bond-buying pick commercial
shareholders. and in injected outcome prevail exploration certainty strong the we our our the economy, potential recovery commercial turn, data would the strongest of people. find platform prepared in buyer had acquire the for provide to process platform, that firms sale for began With that assets going unprecedented well the the a the confident would the a and fits represent to to we the and the were identified its support a company including After we comprehensive when business of majority the forward,
time, use economics may the as across placeholder strategies until assets addition mitigating spreads, we favorable respect serve our profile opportunities return, to our risk. With for while buyer, a other the on of carry capital a maintain the considerate of the over proceeds, will to will rotate arise. reinvestment we close, Agency capital as to In investment
to conditions Given months operational the all the sale, capabilities leadership million. from which further residential sector, of between we cornerstone environment agency our residential the be strength reaffirms businesses. the strategy growing been our us receiving and The customary approximately the which housing capacity the transaction expand and of continue market, mortgage synergies about $XXX be closing our capital has Annaly's away across since multiple approvals, and founding. give still and will finance regulatory the additional back current we're of to excited the aspects credit The will from
therefore, approach MSR our capabilities a in runoff the is which sold. MSR in our that year, via in Previously, a mode with for we to area the class past first investing today. owned servicer asset But connection and acquisition been the multifaceted our expanding the Now has acquired we portfolio we're employed later and Hatteras in we've sector.
we've We and hires third-party this of we of own MSR experience, lead made part decades servicing industry that of have key build-out and several our in-house, as have developed effort. with committed overseas to partnerships
grow again. licensing Additionally, established our subsidiary, significant portfolio witnessed office, progress we've begun to a our with and base have satellite
of We partner profitability, core as spread the the prospective we can This a MSR are useful and acquire strategy, also agency our MSR basis breadth increased as become reducing because has to to contracted, leading a exposure. products positive complementary them reducing from additive secondary to certainty of highly modestly agency as volumes. while of our our originator has hedge our yielding particularly to takeout. is the primary-secondary a originators capital strategic returns
see capital the the basis given above have of the However, sector to severe structural as of we XX% allocated a the and do past, much a we run-rate not leverage asset. on in pricing implied said dislocation, liquidity the in absence
in MSR very is view the is require precision and of in Our ingredient volatility and risks. portfolio, potential that attractive measurements the but a recipe light the
drove additionally, we purchases loan pipeline continue saw we the front, sourcing continues third-party and our on grow. which in-house the the of over in credit residential Now and whole million our add capabilities to to to $XXX quarter,
a now with Ilker $XXX beyond over outlook. returns platform since to our our teams middle-market to go million commercial residential a diversified we We and been through key on alternative markets a like the which pricing for expect to strategies on investment agency hedging is it also also I'll that continue optionality business, with to retain mortgage-backed XXXX, that, we the including Through over and sector and generate sheet the leading platform. turn balance time portfolio over portfolio, in grow our agnostic differentiator to embedded And believe investments. which we'll securities cycle beginning depending go that activity. us, And has our with lending activity