Gudmundur members us and morning, and thank Officers; everyone, CFO; Thank management. Quarter you, Hal. Bryan Good for Investment you here for Wulfsohn, senior Co-Chief other MFA Earnings Also Kristjansson and Steve with our are Yarad, joining Call. today our XXXX First Financial's of me today
January. between off the was up as Signature weekend however, Silicon sharply on notion were payroll shut and crisis in Valley the credit basis over bond spreads additional XX. February as Then quickly month of rallied down Two-year Bank constructive shot The volatility March blowout and dispelled. an And of Two-year month through through the more over X XX XXX a number market note expected banking February modestly XXXX This just phenomenon the treasury short-lived, higher. X XX. XXXX of rallying and becoming basis and first promising utopia Bank quarter Fed sold points yields a priced market any was on XXXX nearly treasuries queue a of with when started March progressively points treasuries of bond tightening. March early March that was XXX the
to about has As improved if that high inflation concerns add liquidity inning worry banking we to very is mix. and asset clear it's extend now to sector least term crisis in difficult quite credit is of short the a banks we for possibly of at possible environment to very not sales longer. Fed and numbers with willing did and the be focused It's know not on the will what that less year, the enough have still inflation but that persistently geopolitical last in banking
at we Powell, financial but the Chair, acknowledged inflation, Fed of will story market unknowable to effort not this impacts these reduced for could press in year experienced work conferences, lending the in time. over. has curb magnitude the some of conditions, is its Long last short, the As Fed which is volatility do bank tighten
and did beginning are over events not the a to quarter year, environment specific year first higher-rate to our our management many of last certainly risk the a in anticipated take occurred from over we that have XXXX results MFA the positioning have While of in protect we preparation. a could ago, testament steps
REITs. in and very the first X% an period book return X.X% economic quarter, value we was of economic challenging generated a mortgage in what Our up was for
and face funds X hikes period. XX early period In XXXX, of fixed as $XXX points constructive the the billion X have funds by securitizations in of the of in XXX securitizations fed less our basis quarter have million increased points of rates Together interest advantage cost yield to amount an collateralized in of has we loan swap by continued XX in XXXX effectively the funds. last has basis up, aggregate portfolio since over first market increased loans. book, took by X of the of XXX than the points with on rate quarters. cost $X purchased our securitization performing the almost and basis And our over our we trended We brief did a March same executed
today, foreseeable increase spread. our are future, substantially to that continue and the purchases for New should rate interest at higher yields
position, XXXX Fed of and swap million in basis the quarter, in rate first of the positive excess the $XX in very interest now is assembled which carry before XXX tightening, of points. generated stages and in carry early we Our early positive
early at time, the increased XXXX. of XXXX interest positioned swap effective MFA more this that the half admittedly, material securitizations the the least and half quarter compression thus and of much in pain particularly Now our far avoid over second of XXXX. the executed at But spread XXXX the position we spread funds last and our in in to first of reduced rate cost
credit of portfolio guaranteed loan portfolio are a to fundamentals with are weighted is LTV and years to purchased only discounts LTV of at And credit but risk ago at loans LTV the comprised MFA higher loans does low, current very entirely not and these almost not by the tail the we expose government, par. end but strong our is substantial importantly, quarter of loans of U.S. Our that average the XX%. loan small overall
UPB. deck than these earnings metrics. the is our credit price illustrates LTV Page our So purchase LTV to lower to of X considerably
fundamentals. On credit weakening book below overwhelmingly actually the low of provide in is Page in and XX portfolio than interest deck, earnings decreased MFA's we are also the rates mark our quite of upside due delinquencies value to This first rather loan modestly potential marked our par. Portfolio components substantially is as rising quarter. economic to
through to par debt principal discount value portfolio securitized the curtailments the have upside. over to recoup par. we share of par, either book potential with repay per borrowers we economic Netting scheduled discounts discount payoffs, loan or $X.XX to amortization, As these
that the seems clear need the Fed order further clear break rate they'll hold levels long it inflation. of to increases Now to certain nor rates neither in need about to at on is how us restrictive
remains strategy as in been second rate it prioritize has year. Our place last to since the continue We'll of quarter liquidity.
asset at market market Our position million reflect adjust over cash rates to on $XXX and current and purchases was will funding to securitize and continue end. loans quarter our pricing yields costs. We'll
now our to turn like and discuss Lima to to activity Gudmundur I'd portfolio And One. call the over
