MFA - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the MFA Financial First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode and later we will conduct a question-and-answer session. Instructions will be given at that time. [Operator Instructions] And as a reminder, this conference is being recorded. I will now turn the conference over to Mr. Schwartz. Harold ahead. go Please

Harold Schwartz

actual expectations speak Good are MFA’s statements today unknown The to for nature, All XX-K statements may Financial, uncertainties anticipate, When management’s Report regarding operator. future to this and performance year would could, estimate, forward-looking from discussed in are in These containing These and on conference MFA may operations. beliefs, reflects statements factors ended including could assumptions the they time Exchange and it as XXXX, intended which December call to contain identify Inc., from in assumptions it such any file morning, MFA’s various you, as statements. Commission. including information to factors, time that with and are only expressions risks, or MFA’s forward-looking everyone. and makes. types implied other used, other on statements to and Annual uncertainties, projected, Thank Securities expressed or results known the are statements differ reports risks, date that historical as the words forward-looking to and forward-looking of should, Form or other cause those made. not on will, XX, described those subject expect, of similar believe, which materially those refer

Knutson. see quarter call in Chief now the would for For additional to XXXX turn time. you disclosure information Thank MFA’s President, Officer use to and this regarding results. your relevant MFA’s like please press statements, Craig Executive MFA’s financial release forward-looking the of announcing over first I

Craig Knutson

quarter Vice senior to results I’d welcome Bryan you of XXXX With Senior Wulfsohn, today Kristjansson, Vice Yarad, CFO; management. morning, like Thank me other President; you, and members MFA’s Good Steve everyone. are financial Senior President; Hal. Gudmundur webcast. to first

XXXX. first in We with and our activity investment of results pleased quarter are financial the both MFA’s

around rate residential largely produce maintaining these to centered peers. challenged of profile during continues unprecedented credit interest this reinvest Our residential low while investment mortgage coupled much with returns book leverage risk XXXX, provide attractive lower sensitivity our to portfolio run-off experienced results We muted assets, mortgage than our stable assets with MFA’s which capital. a credit value. multiple us

reliable whole has spent looking Our to a investment of purchase the and enabled in order establishing QX competition, we pools at in counterparties XXXX source in efforts new to team size significant last analyze time, of low are able loans These transactions investment volume. time as some with considerable opportunities. to fruit of effort year as both MFA’s credit sensitive relationships limited bearing have XXXX. same us QX to buyer of reputation new loans, continue been including acquire cases, and we and

third quarter down a CRT securities generated in of and most demonstrated As and reputation followed all-time rising has securities from an are over of initially first capacity price home MFA value recently, XXXX the and to prices with were then RPL/NPL QX we many in credit years, with by assets earned loans fourth hurricane-related We the tight share that in MSR-related $X.XX sensitive Please the as difficult after X. we’ve and non-agency when from RMBS turn recovered XXXX, quarter. in in have which per Page intellectual levels flat legacy of appetite. non-rated declines earnings CRT year a quarter, sizable evaluate XXXX, early the quarter last to was with assets, XXXX in they to mover first the with understand, to as

been levels of very the to stable book coupled value value Our average has our investment strategy per low the variance and than a with MFA’s declined in quarters book last quarter due six share, less primarily for between first and with quarter-over-quarter value a low X% X%. slightly book than variance $X.XX less high to leverage, of

values, for from generally the the the quarter first strategy was benign MFA’s insulated book value of shareholders not. experienced of XXXX And While was sector. sharp XXXX deterioration much a period book by

for provide X. to $X mortgage investments taxable fundamentals our run-off continues XXXX, XX% credit billion credit mortgage MFA’s now over was equity asset this quarter $X.XX class exceeded with nearly MFA’s total strategy at and we comprise of our residential which quarter of loans, assets paid now class. $X.X to per and billion, investment book Residential common March allocation. our as returns, income new $X.XX. first MFA’s Page earnings REO a XX, XXXX XX% in including represent over Please drive by $X.XX of strong $XXX attractive paid quarter home shareholders consecutive in equity credit million. at XXth And the asset estimated largest finally, assets value. Residential Our undistributed the approximately of allocated We to of first XXXX turn share. have dividend the

we presentation, Additionally, by significant in in the and managing achieve ourselves of later recognize sometimes we further immersing credit the and better resources returns. will effort. to outcomes messy that committed Bryan details We our have improved sensitive loans on can elaborate asset complicated management that and

non-agency X.XX%. results and is in As our financial And a first direct and yield oversight the tangible our of our quarter to materially continues decision-making. turn services Page to generating contribute involvement there a third-party benefit perform in to good as portfolio Please legacy finally, X. are, to well

from at borrower increases in price economic assets impacted are interest rate in short-term we continue focus be appreciation returns assets therefore, good sensitive have on residential to tend and actually improved and as purchased have prepayment We to continued less so acquired benefit have nature assets profiles. they repaired a The sensitivity. credit Investor our of Many of primarily sensitive credit discount, expectations rates. generating were assets. credit positively growth mortgage have home credit

the altering risk investing by challenging the trends profiles. makes are return positive resulting own, these new market While assets more we pricing for higher

maintained market asset that of materially uncertainty discipline, well asset opportunities. than reevaluating disruptions year have potential is continuously pricing We our likelihood new was XXXX. We as higher it in the and exploring classes, while existing as this believe price

significant $XXX Page million the market as turn liquidity able including powder of of We less book shorter-term continue to Furthermore, reduced prepayment over the advantage continue on with have opportunities low approach look in returns that together We strategy reward to risk and rates rates. in sensitivity provides credit primarily is while sensitivity less designed still arise, loans. forward disciplined and producing widening lower done assets same purchase to to than to leverage risk. our we spread on set utilizing value, interest preserve interest expand of achieved historically. and/or credit X. of our take within in whether were other us to our focusing to residential with with space, over we returns, of to investment more are similar opportunity other quarter, MFA mortgage our dry the focusing to with companies, materially Please – credit look investment leverage residential rate level to than sensitivity Our first assets whole has million or attractive $XXX because little a substantial

less off. almost exceeded assets Stevie team ran a who leverage as quarter. quarter, of call Our million first our run-off than the has the loan utilize for the will deployed by we portfolio the our during of million efforts impact $XXX incremental approximately management assets on outcomes turn asset And whole results and the the of Yarad, had investment capital that our I’ll $XXX acquisitions the credit returns to over assets. meaningful now further sensitive in on provide details existing And incremental financial

Stephen Yarad

Craig. Thanks,

stable continue this earlier unchanged quarter. to highlight book Craig MFA’s value, in As dividend results our presentation, outlined has relatively this financial

quarter, impacting quarter income CRT lower the income unrealized per CRT the in XXXX as value While this related primarily two, on prior sequential not which is was during the gains in reached pricing for portfolio quarter the X, discussed, million. following. this of higher the resulted Please as tight unrealized due prior $X.X primarily driven net fair which still to from of our our from quarter; the income is volatility unrealized common $XX.X lower gains quarter, in compared approximately quarter. when the This concerns historic Income to performance income, fair than in strong price $XX.X results, value million resulted other loans quarter analysis nearly while present This of Page high EPS And at sequential Interviewing you items levels. negative in terms we in CRT of value. of to primarily includes turnaround million less decline note net significant income quarter quarter. as a a quarter as the of a is to subsided million, in net to of $XXX,XXX, cash than gains key previously $XX.X fourth turn gains million decreases approximately One, for the income net will One, fluctuations Hurricane is on contrast fair summary of quarter. is the fourth $X.X that $X.XX prior mark-to-market account share. that two, coupon the securities, XXXX, income loans for on the to is second-half experienced by price due to our and in following. our where basis, this the

Finally, quarter. transfers than is liquidation and $XX.X gains other higher This quarter. on $X.X this to gains cash totaled receipts prior REO, million million which the

marginally the compensation-related G&A this were Our quarter. quarter in expenses higher, higher expenses reflecting prior

equity forward, X.X% and expense between of X.X%. percentage as Going should G&A range a

election in of net As noted to calls, about of due accounting to the other Kristjansson, provide we items now overall who’ll our increase including overall MFA’s to turn in accounted value activity and to investment future the may earnings quarter. in result portfolio income call this Christiansen, fair reporting have for the fair earnings, MFA’s over our some I’d income contribution our more details periods. level option fluctuations performance the of value like in And recent Gudmundur

Gudmundur Kristjansson

Steve. you, Thank

in approximately Majority as and another is $XXX loans residential Turning out residential our our of million loans We MSR-related investments at whole mortgage to whole X. excess across largest REO Page billion. are and Craig had now earlier, we active class of universe. And very pointed residential $X.X asset in as the quarter, assets. purchased

to targeting strategy us experienced last sensitivity rising assets the rate further. as credit to rates the of successfully value. has the serve us environment X.X while we XXX points, basis Page us basis sensitive XXXX, XX-year well as book strategy XXX to have points with interest XXXX. attractive X. by This interest XXX continues an years its positioned maintained July for funds increased in XXX in spread, treasury rate today rise MFA’s December Fed approximately interest and basis of limited points approximately of extremely lows well increased MFA’s protecting well over Turning rate as have from by seen of by

the on first quarter, our basis assets As remained during spread by earning basis you the see interest yield of approximately on XXX to interest this the on page, roughly this MFA’s can end XXX at has period rate unchanged. points has graph increased while net points

We our have as well that continued short achieved benefit sensitive floating from as and this by strong primarily on assets. credit duration assets preference for focusing rate credit fundamentals,

In Turn interest re-book credit Fed and our kept rising funds. swaps as XX. sensitive assets as to from fast Page increased have costs addition, competition fund our rate to the

holdings. show for more cost spreads and significant yields the we of funds Here

continue fourth in attractive classes duration as that first to leverage little of sensitive quarter, to will seeing residential continue points, Given structures XXX and we’re quarter. basis believe the as credit, coupons, the be of adjustable or majority yield credit generate risk we of MFA’s and Page to a amount to yields step-up the marketplace, our of mortgage each positive our from hybrid strong rate to to mortgage of the our the current points our XX. Due X continue our benefit asset primarily was changed asset rate emphasis the that of basis interest with Turn are the the returns for assets appropriate and ARMs, shareholders. assets the end in for our At MFA’s the remains quarter, assets have our coupons fact on supporting two-thirds up approximately low. fundamentals duration such, asset credit. from the

as of MBS, much and fall. highly In asset to doesn’t seasoned our the agency or change nature our due duration non-agency rates rise addition,

risk rate changes of will such, $X.XX interest in profile. materially interest unchanged As hedgeportfolio rate rates in first not long-term was the our quarter our size The at change interest billion.

shortened hedge duration points the our approximately While basis time. XXX swap as declined basis points, naturally to XX over minus

rate interest our to currently our In value market addition agreements. of swaps repurchase hedged protection, about XX%

points the the a in can we we the modestly MFA’s delivered rate achieving basis to XXX stability, of value result, strategy graph this was on of X%. the Turn quarter-over-quarter low book change orange book from a increased being change points average largest XX. few line of page. Page see quarter-over-quarter first As net the strategy has change value value the big basis and quarter. consistently risk A limiting XX years, than MFA’s the In stable interest the with maintaining end X%, duration, been as at our this have to asset factor in on book left less experienced. has duration in by last limiting

To our increased levered interest many by rate And happy investors value by average our credit with treasury more maintaining due by rate by which value, discuss pleased to our over in held XX-year margin the net book while XX quarters, the the space. environment. rates the basis during and points. challenging large last over our value detail. treasury assets the rate of the protected Bryan In the XX-year XXXX, up unchanged, will in roughly and proved only that, to XX an also With points I interest turn book rate addition points attractive sum we’re book treasury current strategy declined in interest stability, treasury for quarter by Wulfsohn, recent increases, investment XX rate our are basis while fourth two-year value has call basis who’ll was In has two book XX rising we two-year increased the book with this increased up, very X%, while sensitive value basis rate increased points. our

Bryan Wulfsohn

Gudmundur. you, Thank

March, rising, and mortgage latest rates lack continues CoreLogic, with X.X% down still fundamental homes by upward year from a XX. remain Now turning a insights technical in reported we but both is and in believe report of sale for home to available rate X.X to market According support. April, is on mortgage historical to standards. prices. supply dropped year pressure X.X% month-end to of Interest There the to keep ago. ago. credit loan the X.X% enjoy are released of months supply Page unemployment dearth low Residential rates performance versus will a this X.X% delinquencies The

acquiring $XXX We million XX. Page to Turning in first quarter. residential the of whole again over loans had adding in success packages

for activity the We as more first loan be Our we for approximately the has We in of continue heavily $XX versus to the the towards saw Again, year-ending to side more weighted delinquent active XXXX. of similar be the tight. universe expect loans space trading supply billion is on expectation is NPL XXXX, as the legacy non-performing RPL volumes spreads trading billion volume the in remain to time. over re-performing which decreased loans across $XX quarter

and value, fair permanent with our and consistent X%. value acquisition. sheet as expectations credit billion, our at is balance at re-performing elect Again, Typically, sensitive on continue value, we reminder, loans for carrying is million. made a This and two held non-performing loans loans be of Asset value held time lines, non-performing $X.X fair for to loans appear returns our loans. to the on loans $X,XXX at election on carrying of X%

non-performing or of economic of be now were are active delinquent of oversight loans XX% than servicing the more REO purchase outcomes. prior our month-end or full, believe liquidated, one-year. in management We XX. either are XX% purchased status. for therefore, Page either to shows portfolio that XX% the still outcomes performing XXXX, March produces loans liquidated to at to were paid for better Turning in owned decisions have that slide and This

or are our These over We outperform our of very on XX% re-performance. in pleased to modification our with for performance initial performing modifications as since either results full. are continue paid expectations

reduce to improve management more well team with continues results. evidenced our servicers upon working quickly to Turning team concert loan the two right-hand to asset is our in limit the resolution. side of charts We on as Page to by already and impressive loans get timelines their believe the as is This re-perform, XX. to page. The

top you in full. in held for This in XX XXXX can XX% chart, paid NPLs since at in in XXXX. making improvement were re-performance acquired XX% see On rates or the monthly XX% of compares to months and XXXX payments

loans acquired months the XXXX XX chart, resolution after XX% were year-over-year. our resolved of and lower improved XX% performance in On you XXXX. loans can XX% in versus in XXXX after see timeline

portfolio the X.XX% We quarter. for our XX. for to first AX approximately tight AXs Page relatively Current MBS modestly yields around with We from AXs. Craig. the AX now, to majority to market the higher Turning in to moved over of call like first X% in managers. remain RPL/NPL still I’d spreads our added and unlevered quarter over see are and coming demand rates. yield space of And money the turn back

Craig Knutson

Bryan. active In investment remain market. the in we you, summary, Thank

pricing We we approach, maintained our which sometimes win means disciplined bids. have don’t

for are that investments aware far the in of we years are investing for lock We reaching keenly long-term, too suboptimal returns. can so

meaningful will over our and believe able lead We and be up to our for open management concludes This structure call better next the Our diligence investment the reevaluate cannot always team will opportunities. will what that attractive seat understand classes asset we opportunity the expertise to at we to to predict questions. Operator, time. are confident We but size. please that and than be, realized to the approach to returns would the quite you table, invest is transaction have remarks. ever working ample investment a in various asset new capital harder prepared

Operator

is with Suisse. line [Operator Credit Doug go our Please ahead. And Herter Instructions] the from of first question

Douglas Harter

the next about can outlooks quarters? in talk like for of you couple the Craig, repayments what Thanks.

Craig Knutson

Prepayments?

Douglas Harter

I and that any the, Are of deploy? Yes. coming amount the you’re might to that cash Oh, the repayments. RPL yes, have guess, back there of of step-ups sort have securities getting accelerate

Craig Knutson

– portfolio year a less than probably than the it that it’s was size than was So, ago. a third a little of more

done – because it’s certainly Typically they those they lot not that think step-up, callable, of rates. the become I the saw older – three-year but were it. because at we’re we of just So as deals those their payoff size to payoffs higher they a when we’re last year, acceptable not many usually deals of reached the of because portfolio,

we So called, year. we’ll I like don’t see last could we anything some think see saw deals get but

Douglas Harter

And your – how do – But comment deployment Got of discipline. you’re opportunities obviously, see in far then, as that it. pipeline we competitive I can think about last how we so bidding guess, of capital? it’s the your that you – on as

Craig Knutson

the good. row There when I a very was in over replacing think, of incremental which Bryan a runoff. they’re was billion. loan market, you’re deployed we’ve – $XX small It’s out, there’s think, pointed There about transaction capital, that big in two supply. robust pretty is no I task quarters still million $XXX When as yesterday.

opportunities still there’s out there. So

whole sale, you for loans the difference agencies, buy we agencies we when with they’re unlike loans instance, any whole is only think, – the can day of I for could week. buy

sensitive So looks pipeline but the timing, good. it very is somewhat to actually

Douglas Harter

Great. Thank you.

Craig Knutson

Sure.

Operator

is ahead. KBW. our Bose from the Please of line George next with And question go

Bose George

you’re portfolio, from test how does decline loans, growing Actually, lot a morning. also just first mean, I spreads I that on whole offset that Hi, the the guys, should standpoint, we does whole see given pool the so there? decline? that look guess, I And just, good mean, to of a continuing just there, agency

Craig Knutson

that any loans those But the good in assets Yes, I’ll Gudmundur agency for are the we talk those about mind buy, market. of tests. let all keep

feel any don’t really pressure that we in regard. So

Gudmundur Kristjansson

to you holdings, from table agency yes down. options has they Bose, that new all point on will I before current expect continue highlighted, But would run as Hi, mean, said Craig yes, I and investments are on the a of view. the

we as to as and the those extent, agency all-in they to away take MBS We rise from happens itself. stand situations, on present asset said, only pull the Fed definitely spreads, and yields see anything agency to the Fed, against ready fact So the sense depending and to such the advantage so continues bio, of didn’t to rates have spread just improve. extent, agency take make what we And it us. the that, don’t It competing advantage any MBS. there. opportunities was pushed we were we tight against which of is uneconomic the We’ll so But because that. for they markets

Bose George

Is makes Okay, lender that that guys actually, investments investment that Thanks. you then to secured And sense. are are MSR holders? essentially it you making, the is? what MSR

Gudmundur Kristjansson

good way it. that’s phrasing Yes, a of

We’re essentially of security structure. sort a loan structure, some type a corporate say, of vehicle or lending let’s securitization whether to

Bose George

do situation? you of in growth decent And a for that, opportunistic or that see opportunities one is kind

Gudmundur Kristjansson

an ago. opportunistic, of grow It don’t going but going present two And those, large be a I flow and being evolving a we it’s we a there’s it’s it’s out really into So asset steady to yes, mean, market. think initially to going class, think years initially evolved but opportunities forward. nothing continue to

Bose George

still just to could more, day. sort the is like the – into sold it dealers? and pretty that Is market for Craig, opportunity And you the it guys big one being by thanks. referred transaction you? a – One that of that billion Great, Is $XX be other Capital

Bryan Wulfsohn

that was just was Bryan. out Hey, There it just mean, this was was Bose, morning, this awarded. that is an I yesterday. article

is I ongoing. still that process So think,

Bose George

Okay.

Thanks. great. Okay,

Craig Knutson

Bose. Sure,

Operator

[Operator with Instructions] go Securities. DeLaney Steve next JMP of Our the question Please ahead. is from line

Steven DeLaney

the on congratulations taking for another and Thanks solid quarter. question

Craig Knutson

Thanks.

Steven DeLaney

you The break two QM residential curious in new it included billion million whole that this the I’m quarter production the $X and you’re $XXX don’t there there with NPL/RPL quarters. volume acquiring? loan in is out. just loans now over last acquired But in products any

Craig Knutson

said repeatedly as really table Steve, So, the day. last on are since every all investment summer, we’ve options

Steven DeLaney

Right.

Craig Knutson

at. to it whole but can’t when case they opportunities we do take opportunities We if or are to was environment, our before very take investment lead meetings years first for might, limit the significant new all investments, time be or asset meetings And these haven’t cases, our it much afford that there never I buying residential options. usually in some these actually other before and we may mortgage-related started they’re on smaller any loans, And first of the In from to growing doubt those. the eventually to into first us. prospects In all investments. in meetings classes investment when actual months cases, looked of investment complacent investment we current kinds lead

Steven DeLaney

Right.

Craig Knutson

When this for case how ideas we is many sectors. early the give we’d say, not prospects. and suffice every we’re even all involved reasons, can’t competitive to month that have. very every might count advantage mover week, new prefer in new I to But any away meetings we have with

Steven DeLaney

That appreciate time. appreciate respect – this RPL/NPL of players helpful, everybody that’s Thank you I clarified there market. that. is these to opportunities and in market Craig. I at dozens the dozens do you’ve emerging be need that And – and that for are are that way confidential knows, And institutionalized

Craig Knutson

Sure, Steve.

Steven DeLaney

sort recent a XX mortgage studies your with tell entire seen transactions just NPL/RPL that any slide, of on the RPL/NPL this of you us debt Bryan, have Page outstanding remaining question universe? just year, we expect billion the of kind you size – of $XX is,

Bryan Wulfsohn

loans, I about just right? supply were mean, are you the majority to assets talking trade, So… versus say, never these when tradable re-performing going we of because

Steven DeLaney

about tradables, yes. So the maybe we should talk

Bryan Wulfsohn

Right.

as improved be going when $XX just towards But expect RPL created. through. has legacy – the There as issues similar this the as NPL So a say another just aren’t keep just and worked billion many you just new that’s there’s year, economy can to being we NPL is trending amount. continue – expect another versus to maybe again

is passed So three next and to tough think, tell. a for But $XX still to billion that, I it’s two possibility probably looking years, probability. forward it’s the again,

Steven DeLaney

Right, okay.

that got do some making – towards a I’m have are more something be guys – in now. could more you determining sounds with into kind of asset your management your vision commitment if pass of sort to operational the just it like flow it that strategy? outlook of curious outcomes? And So the something does you’ve internally of

Craig Knutson

the you more NPL is – there you units. to additional take effectively more we’ve more – able Yes, to and space, those of on amount be be people is more just therefore on, just required continued management as loans need to that’s there manage the active

up we’ve of been sort that’s bulking that side. So, expertise our on

Steven DeLaney

sit Okay, consider just Steve EPS you. your GAAP forward REIT income taxable – any close, Yarad, you Steve, for going thank And and when a and dividend, differences basis? there down like looking be do GAAP is reported is any to we talk reasonable ongoing or the to RTI proxy about discrepancies should Board a that between on quarter the you material quarter and to

Stephen Yarad

around the four an basis income on Yes GAAP year past period. you right the average or our interesting same basis because taxable say over a our look think going I share, last Steve, be if it you is and at an actually years, over quarterly have question, it’s on $X.XX amount, four the t so per at ironically if go back

difference of when securitization, $X.XX have differences you unwound in quarter an income have income and taxable we between individual significant quarter. settlement, stabilize RMBS in because We’ve had securitization. an on income can the from quarter-to-quarter from taxable we and either GAAP $X.XX GAAP to quarter However, obvious or

impacts hard really is has and are predict now particularly into going NPLs focusing And forward, modification as taxable hard, have we income that have – centered which and on as more can residual to it’s talked our Bryan portfolio – on have activity. when loans. whole which income, it’s taxable So about, you NPLs RPLs we on turning

that differences say GAAP can amounts, be very has from what been of in So to taxable have of there it’s would towards difficult over you perspective an tax. have a and forward that GAAP. the they to – On so sort quarter same trended going interesting, that proxy time the you say reasonable income it’s relation might any individual

the quarters. So I necessarily the answers several color last if that giving on it you how trended but just know over Steve, question, really your don’t

Steven DeLaney

Craig. very It’s – helpful, very it helpful, because

Craig Knutson

you forecast. one just why difficult to example I’ll it’s so give of

if purposes. So modify but loan for we generate nonperforming doesn’t gain, a a loans any look generates at that for gain taxable when GAAP instance, it we

using those that any with On income. the produce value loans, that the GAAP hand increased, we for fair value other taxable of but income, doesn’t account nonperforming and produces loans the if

it’s to in So so and two the exceedingly really it’s say forecast. ways complicated are to sufficed difficult totally it’s different in areas, some

Steven DeLaney

it’s period, quarter care track no smoothing reasonably really course it, the is – of year the Got the I’d we year so quarter comment about should say. comment, to over Steve’s longer a out that just about it wouldn’t is much a over

everyone thanks comments. their So for

Stephen Yarad

to trend to years over but into the that. continue difficult case, clarify definitely the four will know past the just been Steve, is Yes, on whether – it that would Certainly that’s future. that

Steven DeLaney

thanks. Understood,

Craig Knutson

Steve. Thanks

Operator

And questions. It just no someone again. we looks further up have like queued

Doug Credit have Please go ahead. with again Herter Suisse. We

Doug Herter

wanted to be in and a you your interested this that’s capital way get in something on opinion space as Thanks. just base? participating the in whether would to your grow recent I consolidation guys

Craig Knutson

for activity topics Doug, that duration. acquisition obviously mortgage We’ve mortgage Sure could the not our engage thanks recent like and paid merger in and to in attention discussion interesting REIT space. knew on geeky convexity negative people question. and really Who things just

we to parties. might cocktail we Before get know, invited even

merger shareholders. or consider any really acquisition, our interest we only evaluate the we As possible of

that drag expense equity adequate scale on operating operating base some we make which already. can we high the these a the expenses sense case, ROE. an have lower might produce lowest in MFA’s among In transactions we and others feel For because increased sector ratios have

an to at own we to that the look we price. interested likely they opportunity if we attractive would be most offer assets when at us So acquire want these transactions,

this to day. but the And effort the if assets, Facts as the change. the That it’s that every something not accompanies the we even table as purchase that in difficult or said, would we so circumstances likely has we’ve and does is We on do our everything rather I’ve on and/or past, don’t the never or try that do future. that said, said is distraction we book, marketplace asset some not do have in that not and can never can done mean say bought call and price something in class at said, have, may about we that Gudmundur as transactions. say above the are enormous to and justify if substantial we as if assets we such assets

Doug Herter

Thanks sense. Craig, it makes

Craig Knutson

Thanks Doug.

Operator

have now the And moment. questions we no at further

Craig Knutson

All right.

today to the for in to thanks. and you joining in on again we call want August, look thank I us to everyone So speaking forward the quarter

Operator

and made X, at ladies midnight. will today gentlemen, August be XX Well, replay to after conference XXXX available through this P.M.

at the conclude International [sic] You participation and access System Those entering thank you access [XXX-XXX-XXXX], for using Executive code that X-XXX-XXX-XXXX XXXXXX. does for the your Replay AT&T Executive and by X-XXX-XXX-XXXX today, XXX-XXX-XXXX of our And for XXXXXX. XXX-XXX-XXXX. conference any and dialing AT&T may time dial again Teleconference. are access code numbers participants

may disconnect. You now

MFA Financial (MFA) 8 May 182018 Q1 Earnings call transcript