BMNM - Earnings call transcript Q2 2018 | Bimini Capital Management, Inc.

you, Thank Good everyone. morning, operator.

due Reserve down revenues base During first Advisory XXXX. quarter XXXX, were their X%, Orchid modestly, Capital for to were Island as the slightly second seventh quarter rate quarter. Island our as repurchase first down raised tightening does funding their target contracted in of services Federal Bimini of in compared the share not revenues to program X%. decline second replenished portfolio be cash a received as income in and moment. as a raising X.X%, predominantly book costs XXXX quarter to MBS by during quarter declined declined at appear XX increases Reserve the cycle. during the increase shares, following such value negative revenues the order declined the Interest was June, quarter, current needed It rates of Federal Including during margin Orchid the of call for Biggest that funds the our in XXXX. levels X%, as generally again once in the finished from dividends basis-point has for continued total the the activity, Fed the

XXXX, to stimulus fiscal quarter range portfolio tax the Bimini appears XXXX. investment continue second quarter activity times any review operating for for rate three of Royal Cuts The portfolio next the of target MBS performance employment declines remain basis, into MBS this XXXX the more revenue, on through economy of modest more strong. of continues Jobs generate funds redeployed our overheating. in extent By Act and annualize introduced to the and two likely an However, to of going macroeconomic XXXX the in be be few raising Fed and before of I in Tax would U.S. appears these strong X% At by given expects in be the exceeded and Palm. XXXX developments very is Act is to the at into losses Palm. during be Growth to the that The Budget quarters. particular like net of and in retained point, taxable to the spite utilization measure, remove accommodation Royal of to the the income times market robust by the Fed’s to economic Bipartisan in can

rates and also attempt the positive on have and last the of from the our and consistent seen of it be spread found, States. short remains Fear aggressively the This Developments economic partners trade asset likely fears weakened activity fears by term basis has a reduced by One beyond is trade the with of years administration more current the unfair rising return points increases a Fed. the the reduction impacted meaningful is over as mortgages counterparties modest the should gradual the resolution offset force an if The flattening meaningfully has reverse longer A by have higher the their yield from This has quarters. Fed on while inflation our indeed war market benefited returned has quarter curve place negating or tactics points the slowing the or of be term. coupled XXXX-to-date. trade for something X%, appear level asset target former it supply reduced a that coupon various be continuing and rate in purchases effective if MBS threat the between negative at prepayment this protracted raising of trading XXX abated kept President is a war. second with agency trend pace. level driven the of few to until does resolution found. the of United economy to has in near appears performance the to risk sees what MBS, that negative near of behaviors the not the a purchases would The administration’s administration well, war will the exceeding Trump trade to It negating meaningfully anticipated rates a Reserve, Fed if Importantly, to rates trade determined temporary Federal have more of July, market somewhat the lower. even the The correction for of taken been seen basis lasting. remain class. apparent this long XX but generated effects agency tariffs is impact will Fed the negative introduced terms. trading to and agree to keep of to The work to by market in in as remains of further late

the prone portfolio portfolio XX% also specified behavior. as Going as downward the asset agency speeds, generally portfolio to Palm by With performance higher was forward, of versus basis of XXXX, The the impacted elevated securities yield on X.X% drove a are points during losses portfolio second XXX which has the coupon, portfolio quarter. of the the to the inconsistent negatively continued mark was higher during put current the which prepayment pools, to MBS curve continuing was for prepayment concentration abated. rates owing agency extension on and Royal of high move compression preponderance average the XX, paramount rate the at pressure This demand on the our third returns yield fixed of MBS, first quarter of smaller pools market class. both well as as underperformed XXX to March the fears market risk quarter that year for trailed, The XXXX. X% nearly pass-through that could the for MBS and comprised

basis the mentioned increase the the portfolio sequentially, points of cost, XXXX. this as previously, of XXX yields $XX quarter, our the XXX XXX rose during points approximately million this size I then offset quarter first quarter-over-quarter. second This interest a a by in quarter XXXX X% XXXX. quarter contraction to of expense quarter in declined XXX as from Reflecting versus well However, basis of the quarter income and in hedge first in the interest which resulted to spread declined to

a between the the three-month XX, years, $XXX rate represents implied interest of three LIBOR our million XXXX currently hedges with June X.XX% million is starting X.X%. LIBOR weighted December repurchase running Three-month and Royal approximately $XXX.X average XXXX has agreement balance XX% X.X% of in euro-dollar contract, million. Palm and December However, contract XXXX of approximately rate $XXX place through with and each

balances the two To the Orchid its the growing dividend net of XXXX compression Island MBS three-month months, should the cash in Orchid position $X.XX April Palm XXXX. rates September these Royal hedge rise, in mitigate described the million has continues resumed last margin extent, replenish Developments For well, $XX $X.XX stabilizing to is rate LIBOR contract, forward. With reduced the its portfolio. positions the XXXX our and market over March we felt as of as on able in to going just some to further above to euro-dollar have interest of third by been of for XXXX X.XX%. from market quarter were in within implied extent,

of result, a current at to-date, program in had have first you repurchased quarter we little As reduction XX,XXX all the a weighted dividend in as year income we a XX% And March under this introduced know, share we XXXX. $X.XX. for finally, price versus average of of the purchase shares a the quarter and repurchase

repurchase you. stock the shares shares hoped as the full While governing volume the is it this open questions. the call share was we would acquiring to of program the but number we’ll picked allow. been introduced. of has now modest, Further, late up when repurchased activity we have case rules up by restrict repurchase programs repurchase to And Thank the somewhat, extent rules share in

Bimini Capital Management (BMNM) 3 Aug 182018 Q2 Earnings call transcript