J. Rock Tonkel
welcome Fourth our me XXXX Quarter ], and the Earnings Arlington to John Good call the on joining morning, today Asset. Manager. for Thank Also you, is Rich. Portfolio Murray Call [
mortgages fixed Risk pending prices with continued monetary from market support, to a to markets Federal both improved available extended while rate fiscal last balance most at continuing repo attractive tightening for credit with readily and with sheet income spreads and their vaccine costs. curve rose quarter, asset fourth the outlook.
With to ongoing expectation economic volatility successful rally rollout, a yield well rates for fourth Reserve the on during funding along strengthen led low performed economic optimism classes quarter, in recovery. interest agency and funding additional the of the a equity steepened quarter During and MBS long-term response interest agency asset support, stimulus
sentiment investment high par reflecting that increased dependent agency agency low mortgages mortgages of elevated premiums home ongoing there's overall the assets combined positive uncertain supported the Residential profile risk of return credit continue and to general purchases economic by also historically investments credit improved on prepayments tightening theme across with generally and rates. with low a expected Overall, tightening be assets financial at towards path assets. trade However, reducing values asset values spreads fourth by risk in are the Federal Reserve, mortgage to credit quarter, rate spread a the new and going strengthening an of environment.
Mortgage led an to forward. strong in a of price during of outlook appreciation of mortgage
allocation company's this improve sources unencumbered mortgage including liquidity currently of diversify with goal level the agency build its are the complement that which investment of targeted available of by strategies, company investment reliability environment servicing to agency However, credit rights, The other mortgage over of financial believes other attractive the The MBS complement risk asset its and time MBS agency of and expects mortgages portions can into returns. returns at in shareholders is opportunities its and portfolio classes. that company investment there portfolio, deliver income our multiple time. redeploying in to and this capital to an form
flexibility leverage available. high and structures term financial position financial liquid and low keeping stable where strong, non-margin a maintain to utilizing expect while We by financing
growth flows, company's to current possible on in the of that is the of company for returns top and investment value-creation the compounding creating promote the potential partnerships or where addition, platforms investments. the embedded focused layer investment In opportunities predictability on
for company from MSR channels and while potential Before unlevered high-return strong mortgage currently complete relationship leverage investment results and established X% the quarter more return approximately discussing economic and as note a in initial to secure investments MSRs structure. GSE expect The for produced strategic as rights highlights. low the maintaining with balance well in a financial like flexibility, the return through sheet double-digit We and opportunities. few a servicing detail, a in completed stable opportunities a ongoing we servicer appreciation I'd which
at company prices, improved a shares of by expected outstanding year. additional X-year common expenses with structure, by reduction in the year, its G&A to in of XX% savings are shares repurchase over repurchasing its during potential period. a accretive the XX% XXXX leading expenses cost to that continued approximately ultimately company XX% the for stock The And reduce to
of For $X.XX the income business-purpose core quarter. operating and its investment of fourth benefited which a of share trust fourth The quarter, consolidated per share. operating net core income $X.XX operating share of per mortgage loans, the approximately company contributed during in the reported core $X.XX income company's residential from per income
asset delivering operating year.
The Going the the its strong X% investment that as company's both first of performance. in $X.XX the a maintaining resulted economic expected lead quarters low company X leverage. income of will the XX short expected while of the fourth performance mortgage was risk during continued accelerated as to the this expects an strategies economic December value this the quarter the investment, of its still to contribution notwithstanding credit pay-down per the is as book conservative approximate positive company's MBS and an share and first be profile duration during investment experienced the to forward, particular return agency 'XX in of company half core lower This of
its be repurchase As ratio significant was X.X:X at stock to leverage having continues flexibility.
The company's XX, committed the with overall company of company December risk the program. financial to
an of $X.XX X.X% the outstanding stock quarter, company per During at repurchase contributed price that share value. book to repurchased per the share fourth common $X.XX average of its
per For the outstanding year, to the accreted value. of that share $X.XX book stock XX% company repurchased its common
XX, the company MBS As stock.
The performance mortgage benefited positions agency authorization spread the shares with Board of the to up to tightening. repurchase of pleased and XX.X million as its both company MBS investment portfolios of remaining both -- was credit common and quarter December agency had fourth during from
increase.
Levered X% to rights which mortgage XX, raises we January XX% its December allocated $X backdrop, of benefit to Reserve strategy, have Since repo in the yield an and As low servicing our X, to continue capital, position. appropriate returns costs, allocated are overall to we seeing available that MBS as single agency agency in and Against MSR MSRs. hedge this to MBS funding with million support expect was an the well continue returns strategy, the investable high mortgage XX% curve. currently we steepening to company's as capital levered a from to X% mortgage credit additional Federal agency ongoing of to digits allocation
cautious company mortgage increasing leverage environment. about the capital agency remains in significantly However, allocated its on somewhat current the
present expensive, premiums purchases, economy hand, any prices an the premium lead spreads, sizable If As market of par, to a which, entry Federal provide significant support result at for Reserve's other relatively agency trading continues investments. pay-up expectation of through the its a large-scale that of new including to the a are agency mortgage bond could point improvement, to mortgage mortgage demonstrate specified mortgages agency pools. the taper meaningful the on would holding for Reserve agency widening could attractive market of Federal
loans, the to at capital expects the environment, company also investments company's purpose diversification lower its maintain company current liquidity particular, growing time, allocation returns complement structures. assets risk-adjusted its of form MBS finance as is and residential single-family redeploy to in the presently leverage, opportunities assets substantial offering primarily agency that such to and well better opportunities same business the for low in and financing closely into on or as agency The strong target non-marginable holds, focused, meet other and a risk while mortgage term the objectives at-risk requiring investments MSR-related other of specialty strategies in unencumbered MBS, reviewing of leverage. that while rental evaluating In MBS while returns, as agency other it
seek price mark-to-market returns to base to of loans. Freddie servicing created Mac current MBS mortgage Fannie and expansion provide hedge rights compelling and agency to financing multiples in opportunities just funding without purchase reduced above upside continues potential superior company investments multiple The newly levered Xx, risk. At Mae return exposure with matched MSR unlevered from risk
rights investment risk including is other our company diversifies mortgage correlation servicing agency have return MSRs as of the in to a investment evaluating owns or most the investment negative generally classes our MBS. addition, In
risk in We institutional knowledge also MSR evaluating in benefit when long-term our investment mortgages opportunities. agency assessing prepayment from
to in typically time specific exist MSRs as in entry or to investor is would requires rights through operational mortgage complete regulatory one or to licenses amount to hold an purchase for to required licensed barriers capital need However, acquire oversight and significant means, residential To servicing traditional of servicer, MSRs mortgage subjects and the hold a significant the invest arena well which risk. as ongoing a as investing establish investor to and directly.
At company to to a holding pathway, in return level, high fourth an GSE-approved quarter effectively without company investment licensed the As garner licensed is traditional platform. a enables economic the a the a entered during the requisite the alternative servicing of partnership servicer licenses renting company has with the that purchasing into the directly. the an company of strategic instead MSRs
to our the strategic partner option fee us. We provides relationship, an way in partner. the cost-effective increase our to partner our company, our leverage directly. the turn, purchase strategic all gain capacity to has exposure to returns of MSR payable to the to MSR, rights. servicing to the receives our less believe utilize terms and the efficient of is a At the economics for to direction, Under most company and our strategic potentially capital relationship Arlington mortgage And
MSR total first an transaction We investment entirely of X.Xx were additional average current a of end of multiple MSRs retracement approximately for appreciation newly any $XX Fannie XX%, XXXX MSR unlevered multiples. million, at loans. These an comprised with also early expected while toward completed purchased return an of Mae our potential investment with December offering in originated of the at pre-COVID with
company's mortgage mortgage repo sole non-agency on with credit margin November repo XX, expectations This funding The its at December the funding investment repo origination. has line million that for exposure not on a of any performed its $XX has characteristics loan of outstanding in XXXX of portfolio credit experienced to MBS. company matures consists calls its any and date. have As did repo facility a not in strong commercial with of
either directly mortgage use continue Going marginable possible. funding mortgage company its limit the financing indirectly repo forward, financing investments of longer-term or will the Instead, will on to where company investments. or structures through credit focus non-marginable and credit
The company made towards also progress has significant structure. its cost improving
year by the the annual the run its of the expense-reduction or 'XX. expenses the of over some The company already end lowered will realized company For it year, the will rate of $X.X not XX% by expects from company XXXX, period. over G&A be earlier. almost lowered until XX% the by fully million initiatives end that a Further, expenses taken have X-year of G&A by
well Overall, during to returns investment multiple quarter, high-return, the shareholders, building agency platform offer of to which of raise to potential progress upside. as channels, objective made the diversify ongoing core toward its by risk sustainable solid provide and complement fourth flows and noncommodity overall a asset investment MBS income sources series as its portfolio company
that to in MSR mortgage investment with evaluate and opportunities focus MBS, result continues other credit platforms specialty potentially agency on strategies, the to longer-term addition a could its developing company investment enterprise partnerships creation. value finance In MBS, and existing attractive
available over the power investments expanded the MBS returns from we time, can for provide and these expect capital company channels, As investments to through deploys form which to shareholders. diversified our pathway agency potentially to noncommodity higher made capital returning earnings
repurchase be use across as opportunistic leverage, we where financial expect arise the financing deployment sectors As investment of enabling position, a flexibility ongoing structures conditions and as utilize its maintain that the evolve and stock to the to that may company ability capture highlighted process well opportunities high attractive low possible, term occurs, sizable strong authority. as to by financial
you take much, happy we're and Thank very to questions.