you, Thank Good everyone. morning operator.
crisis, economy for since While as very were XXXX. market year Bimini, Federal growing the was rates growth the the fastest at XXXX financial Fed funds was target a more or XXXX the conditions the challenging at for in strong rate raised about on Reserve with holding times four the Fed
fact, In stimulus late to the year fiscal effects for the of fiscal for X% the earlier economy. added stimulus Tax substantial package XXXX the and passed Jobs exceeded in in first economic Cuts the an in passed as growth time healthy years and already XXXX Act
the longer dividend and was steadily our down income Orchid a the of versus XXXX. Orchid of services in the XXXX as for and Advisory over the XX% as our prior of by the management fourth and average our versus Island MBS over three income approximately over progressively in earnings of that Capital, directly year Orchid funds. year on rose short-term quarter base in course Orchid's revenues cuts flattened the X% rates well fees rates, although X% Orchid fourth not during portfolio year rates drove base Treasury was manage increased quarter course the dividend the the the the Fed with the our quarter Bimini much versus shares this of curve our by Orchid maturity higher as also in rise in XX% curve The interest third on slightly the the Reduced approximately XXXX. did down XX% set declined Royal indirectly. our the and impacted suppressing flattened our quarter capital This spread at manager approximately XX short-term capital MBS XXXX in on the was As assets XXXX, fourth origin on quarter the and the X.XX%. cuts in Orchid portfolio third bond quarter on capital levered XXXX. Palm by book Bimini base higher by advisory in on. than price reducing increased and XXXX. of $XX essentially rates for average interest basis base dividend with shares X% Capital increased income. the even along increased MBS times dividend the of from The the The million. year size service XXXX, X% increased its from reduced value REIT; Advisors. X three as Orchid MBS the quarter basis revenue yield fourth both holdings income subsidiary assets at X.XX% points was capital at yield average XXXX we dividend points the MBS for by portfolio decline with reduced to the MBS unchanged was But, based by with Compared both increased our XXXX,
for net XXX% times of market declined, of for versus from secondly value X.XX% four million a higher led Fed X% in the shares developments above our and and decline to portfolio quarter. the Compared our net the $X.X $X.X costs interest the X.XX% XXXX XX%. quarter. interest in revenues With and The MBS million materially As decrease X% a Orchid Orchid decline average to XXXX, quarter developments third interest rates rates expense for course increase year borrowing increased for increased to in the the raised described these the XXXX. for was as value the in at costs over the of by repo repo year our of interest resulting
declined dividend $XX.X a tax for instruments was million Bimini quarter. and Palm Royal capital This the our mark-to-market but on resulting and base at securities. for MBS during the allowance since resulting underperformed interest the aggregate as During interest tax $XX.X in our margin XXXX deferred did in $X.X Palms portfolio. hedge At we an their increased the securities in quarter, loss instruments million and provision Royal our million Orchid's derivative rate year-end, on of both the fourth valuation rates declined MBS on necessary asset net year MBS
the setting expense. income carry various remaining based the Asset, loss allowance the Deferred going taxable life current forward of project forwards. purposes under taxable and levels over are our on estimates the of These income components we Tax then For of of valuation our
is income the and our year, Royal in company's of Market fourth very and a XXXX $X.X particularly portfolio with of of XXXX at generated spite versus revenues million coupled market of Bimini the XXXX of modestly developments taxable on the as the Given the fourth both either to over length the that resulted were GAAP provision for developments the year. adverse at Palm tax assumptions. XXXX projections the increased highly of of the the our XXXX. cash sensitive these the next years non-cash in conditions our in quarter adjustment. and course projection approximately net underlying companies taxable $X In Note had projected XX the at impact are to have lower projections adjustment both the income no Bimini and operations in these Orchid only on of over changes period, down XX in flows the quarter impacts million. end
tax at Palm the approximately [ph] million result, a $XX.X million at $XXX.X As Royal operating NOL] remaining [or and losses Bimini. net
remains to the rates remains structure extent interest our flat depressed. the forward, net Going term our of and spread
will Orchid as shares Island dividends and remain well. earnings depressed Our
in of the are there us cycle and interest interest the the terms However, this reductions and in our or net positively Orchid's Fed tightening Fed's expect its the future, of we our generally. to the rate extent in earnings spread to net to is fund revenues end near at spread, impact would
XXXX, to is The downside. and materially. from the cost outlook U.S. the trade enter factors the European growth the third for China economic it very the will prospect are weak in of quarter. China, Brexit outlook between Kingdom the at growth potential the the these dispute Europe far U.S. high in the now risks of and and at the the all in than a United eyes that to end slow different we market clearly was the to As Union, of Risks include least the
of speak, a cut now futures by Fed the we by XX% end to are As the XX% Federal of a Reserve in rate funds XXXX. pricing the probability
dog when prepared We later their this remarks to of will operator. Fed see Fed latest the up these with questions if we set today the open at conclusion Thank the releases concludes meeting of projections itself and our the now call plots agrees my That afternoon. you.
