everyone. and you, operator, Thank good morning,
a begin, statements. I prepared Before of read I remarks just couple my would want to make
cover the purpose of Bimini’s to fourth all, is quarter of First call earnings. this
so me, Royal then because about prepared the is fourth So, of please remind Bimini or talk and my briefly. finally, call. I’m two-thirds Bimini quarter, bear to this want Palm a earnings all to going And with just current events speak remarks our first of that the I then about I'll in listeners
glad in So, take to separate regarding about answer to I’m but I not entity. questions will a general, is prepared the be Orchid. Orchid questions markets
begin. as The began was ninth and a show in With or the hike was U.S. of that beginning XXXX to will implemented had market Fed, XXXX economic Reserve, in December rate and far. to weakness. potential gone came the The signal end Fed signs the had XXXX of I growth year transition, Federal to of its too year an
downward such the this series value. rate dividend interest led funds and Palm’s net Royal on series on things, margin of flattened and Orchid, bond hikes downward the had put treasury of and The the to pressure of Capital’s. case as In book other curve, cuts and Orchid among returns of Island a pressure levered
portfolio. Advisors, at and and dividend value income our the well income Palm’s decreasing As shares our a declined, as equity result, management as interest Royal Orchid fee of on carrying revenues net Orchid’s Bimini base
October. September of to the in and meaningful range interest XXXX monetary in somewhat, the not Palm both July, re-steepen in Fed the benefit with in curve realizing treasury the to lowered neutral However, allowed stance Royal year-end. eventually XXXX, target given September net the three This a Orchid to or Fed policy times and funding respect expansion, although adopted XXXX, rate for especially the January into and their cuts. income full Palm enough lingered from in prevented Orchid This and experience of the Royal markets that of emerged disruptions Funds
did growing its year it capital With to However, XXXX these lower XXXX for somewhat XXXX of was the approximately the XX% of our approximately level $X.XX it by net Orchid services million resume capital X%. from The decline on result a average year-end to Orchid’s was base. ended by XX%, of $X.XX allow million. base than revenue above advisory developments
at than period revenues fourth XXXX. quarter were XXXX for $X.XXX service corresponding Bimini versus million XXXX fourth of at Advisors the X% of quarter XXXX for Advisory higher million approximately the $X.XXX in for the
as we Other stock The the support net style equity potential strategy. going X.X highlights tax-based pursue and million was July. loss price our completed enhance returns tender forward, offer share intended to provide for year tender about to the in on included operating Dutch
Bimini at substantially both contributed losses the well operating of at stake larger as net Royal The in order than Capital to tax shares Bimini’s Palm Bimini’s. also We before expire those income and Bimini to in in as Advisors its well tax ownership Palm benefit Royal forward. Palm are Orchid, maximize going Royal
and office into mortgaged invested portfolio. We Palm’s also Royal our the proceeds building
was quarter fourth sell-off. in of of Turning from third to The the the XXXX quarter. the recovery market period quarter’s turbulence a developments and
almost the risk aversion, the sudden of the runoff September August turnaround was early and dramatic. sell-off While witnessed as heightened – depths and the and
increased closing year events XX.X% at markets the of XX, were XXXX. recovery. S&P XXX led around the equity that end highs. globe for in U.S. few ended There a XXXX, were the to key and the the December The By record
One trade XXXX reached ended the and in agreement mid-January by of critical market was signed two turmoil. escalation was in the the between Trump of the were of tentative foremost and deal XXXX. trade First at administration reached heart Phase This The October tensions the [in that countries, was which in the China]. it and agreement
extent countries tensions Escalation we’re today. war seeing global of although triggered materially trade into impacted of has above. two sell-off the August The not between the in trade early the growth, mentioned what
Our the was to and like won this course, risk election avoided able respect occur Johnson when year. defer that, going late forward Minister the was any of subsequent looks with other will that to an around later Prime that developments in Brexit, year it
sovereign that over risk trading of at in of and Inflation-Protected substantially. occurred Treasuries, fourth the amount Securities negative course increases with brought across recovery in The of longer levels XXXX rates debt the quarter forms in U.S. dated inflation interest the of Treasuries. premium sentiment other yields and The in Treasury decreased break-even U.S. term it
All fear movements of are with an these of the markets. abatement consistent in
assure market such addressed XXXX, in final Fed took would into market the liquidity to September to in element long and the fear of that the so was emerged over-night it both funding of turmoil remained. The inject in as funding the do markets, as but the the be markets pressures meaningful that also steps
from of in MBS from Royal points the early spite completed reduce rates the approximately on to decreased a Palm policy, by in reversal versus larger With to fourth yield XXXX average assets XX offer MBS to the X.XX%. in basis at fact tender the portfolio fund we July. Capital XXXX, the was in of The generally size had X.XX% mid-year interest monetary result lower XX% approximately portfolio of X% quarter that as XXXX the the portfolio in MBS
in MBS $X.X the to million. the as our basis increased the quarter the Compared on of XXXX, MBS portfolio by increased income fourth average XX increased third points quarter interest the yield of assets XX%, and size
in above, XXXX our fourth the from the a in described repo in market quarter. resulting decreased the the costs to X.X% third agreement average versus X.XX%, borrowing In spite quarter in repurchase of a X.XX% of interest outstanding for decrease repo costs increase borrowings X% and disruptions
the repo increased X.XX% average expense The in XXXX. the occurred base expense as average X.XX%. of fact the XXXX was off interest interest from in to third expense for the expense of our benefits of For The and course cuts our of quarter. XX%, the first year, low came by X.XX%, Fed rose benefit only of rate of quarter reflects that interest lagged the the interest
XXXX, third in During and our the fourth quarter, $X.X mark-to-market of quarter our securities outperformed our gain on instruments aggregate interest securities. but unlike million instruments, the resulting MBS derivative MBS increased, an rates hedge
decrease positive both but periods Finally, grow just XXXX. upward to we continue million deferred the increasing provision that Bimini, would of and and for growth the we the overall valuation base $XXX of in trend year the the purposes assets, Island’s a contraction, tax will valuation forward. the under is for at Capital assets tax in December deferred million $XX of XX, and base Palm $XX.X from Orchid million had of going resulting tax $XX.X approximately for inception of allowance quarter. at Orchid Accordingly, million on to the capital Royal assume
has coronavirus a events. current significant financial The and economic on impact had markets outbreak global more to Now activity.
declined U.S. yields of prepayment interest extremely rates securities. maturity hundreds the of to still of is establishing of fears the levels of curve. the people across materially globe, thousands elevated for across mortgage-backed have all-time addition In new low This Treasury activity help
working Federal from to markets recently, investors the lead asset the and typical prompting The Reserve, as a on package, as and severe of policy stimulus significant we law become by smooth levered signed has government responses fiscal well coming operation be Such is in have banks activity. across Federal such central is seen into substantial of erratic weeks. conditions sales market well expected typically as financial globe. to rumors the
no agency access in appears all and Royal poorly portfolio been we XXX% highly to have difficulty have have While about assets. or risk poorly low-risk haircuts. in not and agreement – perform been asset ample performance the in obtaining generally question of assets repurchase MBS high-risk elevated correlated with outperforming to invested assets we've funding Palm’s credit affected, profile RMBS experienced had with remains the relative markets to
has basis for point XXX the last Funds cut two Fed the rate this point target the in occurred XX a and points. lowered the first twice Sunday Federal XXX second basis the X cut of weeks, in crisis Reserve occurring to The basis past on March response total
for $XXX MBS, in which Fed a ultimately The Royal Fed of addition Funds billion for other easing package, allocation to and of other term those utilized lead agency to includes counter steps during lower funding million including to numerous and to costs numerous overnight quantitative Reduction has various other the XXXX. $XXX crisis, akin announced should rate an in operations Palm. financial crisis matters
X.XX%. weighted As of Royal XXXX, XX, was average March agreement Palm’s repurchase funding
target in past the we this with borrowings. with However, points, range, existing XXX and new another funding bonds as to expect rate reduction mature fall our basis Sunday not replaced of
activity the lower may a costs, reduce by on agency premium our will borrowing earnings our via benefit – assets. amortization from on While loss realize prepayment our yield RMBS we
reported stay positions with pay in on starting and costs, the we speeds prepayment-related lower downs be and To rates the elevated not reinvested our materially activity extent March to received likely hedge of to to the very cash prospects prepayment rates our time. low for long to April a anticipate [indiscernible] We have this are conserve have X. adjusted light XXXX accelerate margin interest of mitigate
excuse We have also – me.
concluding remarks. Finally,
duress, During these management market critical. of periods is liquidity
to the difficult maintain ample assets We expected of and have to with available market deal unencumbered cash and conditions. levels
the it. And questions. Operator? that's Operator, over call I'll turn to
