Investment Financials' with quarter here and and Gudmundur other of are thank Yarad, me management. XXXX and our are today morning, senior members earnings Good for for you Hal. Co-Chief Also Wulfsohn everyone joining Bryan you, Kristjansson Steve Officers CFO; today call. us third MFA Thank
not with particularly with not markets mortgage quarter no the and period continued or already markets considerable up in was mid-August all financial crisis, and the down all-time near despite the over prior highs, since another was respite third rates through Bond Inflation second of the The Equity extremely time XX% quarter. markets. seen S&P across great quarter up certain the for volatile was the XX% very disappoint half recall offered from in and difficult financial challenging it taken was agency stubbornly backing prints historically a it third X% XXXX you'll action third the quarter in to quarter, then Freddie credit XXXX numbers continue Fed. that spreads experienced touching of be which was two by for Fannie volatile good. high XXX down only a the although to quarters
seem and and it point market Japan, inflation recent obvious in a pause yields was stocks participants not UK at in Although becomes Ukraine raging this a with soon. the for likely Fed we subside consistently has to until volatility and a stocks which their is retrace still sometimes up financial advised and clear sole focus to temporary that ill euphoria bonds is to that driving signals a down short seize anticipate market on tenuous random period on been pivot or and this in war levels stresses the
in As spreads many as generally result, levels. yields to sidelines have and a market even wide financial the on historically remained investors cases moved have
one what XX active But time was that conspicuous into of any years, agency mortgage as an XX to the see over versus absence Fed the is quite of even today last an as question for been observed the plus in the the buyer admittedly, we of market nearly effectively which spreads as notion spread RMBS, floor calls market attractive. that as XXXX, period. products explains of on have today even look credit treasuries many wider on looking normal what today. XX-year levels puts average Recent a Now they all back or in wide prior or non-agency the spreads
to were that been agency referred overlapped of first year when periods see earnings and years our then for points whereas financial XXXX. we another times periods four call there basis XXXX, rates basis four dislocation spreads quarter earlier falling for function Fed in rising crises of a and XXXX, systemic rates. the except only XXXX, with is and last total fact, the wider, raised points all today and largely with of rapidly In coincided the XX have XXXX XXX six of a and market XX XXXX, times I all these this XXXX February MBS during times rates unique in
plus and first today, beginning the tightening year through and XXX. tights time, of Agency identical purchases they increases a early basis the remember at tens announcement mortgage almost Fed increase but and July, begin from all by the prior to spread wider. off XXX only finished would low spreads back XX this be recent similar spreads XX in early tapering in points fifties. rose hundreds. Agency in XX XX-year when basis XXXX basis set push April points in off before points XX of XX-year the XX first rose mortgage September. January a widened the asset inside some During taper of widened of widening rising were and in MBS XXX. the yields mortgage late agency point prior XXXX. just for agency the widening which X% to fed Chair widening rate and yields and from of more the tantrum, from treasuries we a taper selloff Contrast to from versus peak that were have would action plus XXX tantrum before announcement That's XXX agencies the XX the A by 'XX, fed from in set future XXX date September the plus summer plus in in spreads peak Bernanke's year in agency over yields to early then basis just rallied had to XX MBS the led and this basis just with and to to a points of widened XX-year about
recollection context. tantrum than was much in spread Somehow the suggest, my today's numbers of actual taper more and this environment these puts again, dramatic
the While direction exceeded foreseeable. the magnitude some fed hikes expectations, of was has
steps at rates dramatically XX pay became rates We at last position and billion than when had duration move extended, $XXX clear and expected. in average X.XX. beginning XX. the to our the team X.X of rose that preserve at of quarter MFA swap of Our we again previously year, at million took year it Fed manage to to more end swaps capital fixed last need interest duration rate fourth year this $X.X This book weighted and billion increased to June as has March would and
these this pace With now lock considered basis does the U book PB cost, in a only to position funding we've steps same approximately our securitizations the benefit billion is securitizations taken at loan our time, locked throughout costs decline. slowed action and asset-based what acquisition cheap beginning but which from year, receive the we also not points. deliberately through a XX% swap XXX now now the quarter mitigated priced yesterday's in, securitizations positive execute leg, fed is we we and in of the floating from effectively first So in continued financing together. nine year our and of our have rate carry These of $X.X value over
which value, portion or value payoff value the book Although immune or is relative vast peer was decline MFA's diminution book It's will we many majority likely on maturity. MFA worth until was significant a due performance also not that versus to book noting of The sheet. fair hold conservatively our loans balance value to in certainly marks better. group in of
As of the billion approximately million. purchase loan September portfolio principle on discount market is $X.X $XXX performing to of our balance unpaid XX,
by issues book of value $X.XX million secured These a below marked $XXX increase are two that approximately produces potential per have $XXX million We also discounts netting. par share. approximately or
loans losses the loans. amount on purchase any particularly losses our on Assuming at liabilities would be and expected low, portfolio. this off pay relatively par, loan realized all are performing But by offset
as and holding the on Having a while also have all the ended cushion in sizeable liquidity our a substantial $XXX S financing at provides a the market balance We've swing our times September cash the of overall pages quarter recourse take prioritized fortified the for us gives not financing that volatile fences. XXXX increased third for and six drag as cash, of we also and We've portion our market equity liquidity was This non-marked creates seven ability quarter We sheet advantage to was arise. to presentation. time of XX% XXth. in and our X.X our of only to with leverage is million position we end. approximately obviously non-market show roe. market on opportunities and of to of
from term than haircuts for financings spreads months multiple extend financing has market XX% despite to and a other financing. we continue financing for counterparties financing term financing the Typically, The from of these months. agreements agreements bank and eager the before is and couple their agreement. calls Our of financing available date are field maturity another fixed this provide year, term of six loan a loan greater is on borrowing and volatility, we expires, existing significant lenders to
some of after housing over bit spreads Activity in widening not at the dramatically. sell-off talk month see has a like credit. parts This home a little should the on and I'd last mortgage least modest about had years. two rates home appreciation a dramatic to residential after and housing price has over a and declines country beginning be mortgage Finally, and impact and the surprise. dramatic to rates month profound mortgage the price some Clearly slowed We're
portfolio show lowered However, eight, combined mid-fifties. cases has page as to considerable on our which the HPA, embedded loan LTVs the has amortization most in current with we
we substantial MFA continue how to liquidity. maintain summarize positioned, to So is
and fortified the term products. for and from LTV. through our financing financing, with seasoning loan price balance sheet appreciation our agreements non-mark licenses has We a and our low rate benefited market And loan financing have fixed swaps has and portfolio secure home
their financial equity now borrowers the I'll substantial to details properties. Yarad additional discuss Steve of results. over And So to have turn in call
