senior second you, with XXXX and morning, Hal. thank Financial’s and for earnings management. us our Co-Chief CFO; Wulfsohn, Thank Bryan other here Steve MFA of for call. and everyone joining Also Yarad, are members me today Kristjansson today you our Good quarter Gudmundur Officers; Investment
one, with the in March. rallying were higher after environment the treasuries crisis the aftermath XXXX grinding in another second rates rate the of quarter interest volatile most of in second The early quarter. in of quarter for X% below X-year banking the was
finally XXX to higher later fixed from the XXX XX treasuries the almost cut rate bond the points ended the heart. to general widened the a and curve, of in challenging. Chair began end consistent take to MFA’s strategic about throughout basis in to make initiatives quarter quarter hear levered basis particular, the about points particularly fallout moved to However, bond to management of and began as enabled yields the weather about inversion extraordinarily income year this very discipline inverted banking capitulate This mortgages of this risk optimism That the this rate investing beginning with false well. to at and seemed don’t volatility, reality. together much reflect in have quarter. X years XXX-year message said, fade, Powell’s so Fed us to storm interest basis the We and fear market higher the X-year continued points of at quarter and additional
rate points Our despite net to X.XX by quarter this basis spread backdrop. second X.XX interest challenging increased during the XX from
locked points, we higher on only basis continue at X assets basis assets the progressively have as for quarter point. in interest-earning our We funding rate second costs now interest in increased our several As interest yield and to almost yields. our of investments while we swaps, new the quarters $X securitization add billion XX by increased expense through effectively added by
$X.XX, was $X.XX exceeded which second comfortably dividend. earnings distributable Our quarter for the our
but economic half portfolio net first quarter the a that communicated a about in duration duration one. Our value total book return was to to gap the we for been have of and led the of year first and generated quarter, value in in This a increase we book quarter second book off decline this as consistently X%. the the be modestly value surprise, big our not a has second exposure should
received which our interest we is par. loans that par. received substantial rate monthly the principle Despite loan curtailments, are fair impact Page whether driven of simply through or a the below As of the we illustrate at payoffs, fair book marked on the value value at our these earnings to overwhelmingly is of by portfolio, par, deck, was XX fact principal our that value discount on higher scheduled the payments
loan much solid during par. declined major each this substantial this at provide second our be in and We are supports of as the backstop our pleased The credit very with expectation principle asset metrics of LTV XX% classes. quarter we seasoning delinquencies portfolio current of that saw of will portfolio that credit repaid a the
near quarters the steady cumulative appears time of few to the to the that Although is outlook the or at XXX it at interest impact give consensus for at rates and least of and from Fed be seems the certain, rate tighter economy this at basis is tightening the the policy. that of cycle monetary will the the future far next rate end point markets necessary to the Fed hold feel to points least
to Fortunately, add yields. accretive in effectively benefit which new very our ‘XX, XXXX we at continue the from to opportunities fixed investment work assets we attractive costs, hard early did and while we have late now funding
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and loan our higher high high quality and this not of to emphasize nature performance. Lima business value the yielding internally inimitable loan We enough is shareholders, assets. of purpose significance of it continues of this does assets, originator captive arrangement levels wholly originator, delivers provide One, volume Finally, owned the in source evident generated steady that to substantial cannot MFA’s but successively integrated the only shine, a producing
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a of the loans delinquent. same And all investor, we the outcome. not originator is risk. But our this control conflict live servicer we the will own go that uniquely This suggest under and because is to roof. between is there no not Now, always interest
Lima now the to talk over turn additionally activity about One. will I and And call Gudmundur to portfolio about
