everyone. and is hope safe. you, operator, I Thank good morning, everyone
health, the the first way taken impact in United witnessed quarter period devastating ever the particularly and of The life, the to of and of XXXX were globe across economic most on steps terms was drastic. our spread perhaps the The virus in States activity. of slow
As moved selling assets to drove it verge investors to the raise margin on prices down cash of financial quickly as economic became investors became resulting leverage activity and numerous as forcing was The reduce and of collapse, calls leverage. businesses quickly the clear possible.
or first to MBS market selling to gain sole well the trading Bimini liquid witnessed a invests in, managed Island position in as Agency one was Advisors of The subsidiary in that first sold. as the Orchid the in markets that were U.S. market, market. the Treasury wave be company we most the our addition market Assets such the to
adequate a our and margin on approximately needed MBS sold assets impact to anticipated leverage levels. liquidity These our events retain of Palm maintain meet had will quick adequate than impact I calls sell to securities, significant good levels. was portfolio on XX% Royal discuss the Bimini. to was operations first. retain at more We crash levels,
during to on associated by debt. basis and trust did approximately XX%. related a the all million value hedge related MBS closed our sold, million Book the able X.X portfolio withstand approximately share million was were losses hedge disruptions X.X reduced the preferred The to Agency of it losses period, on of to realize our which positions, of per market, assets X.X of with although company the was
allow us capital market However, were in the to remaining we had end, opportunistically the to enough liquidity settled. redeploy to our left with once
the the other U.S. economy, market, prompted and intervene in Given particularly Fed by, the market the markets an the purchasing market. MBS to Agency in breakdown more the U.S. effort among importance of stabilize Agency in things, MBS to Treasuries the the mortgage
support and the the Feds Fed many XXXX, March went announced introduce on following purchase proved over essentially The to to Fed asset steps eventually and unlimited Treasuries markets inadequate, the weeks. days While Agency initial on an additional program for XX, MBS. facilities other U.S.
May quickly However, XX MBS market the action on and stabilized recover. to prices the Agency began asset
to below this opted to all March time, time, XX, of XXXX just its Palm that Palm Like in mortgage Bimini, remaining shares early shares dividend were purchase a share a value. discount at of Orchid depressed April. book Orchid’s Royal additional trading redeploy able Island at Royal the REIT’s XX%. yield is prices At severely opportunistically. were substantial capital At to
exposure XX, acquire March exceeded modestly [$X.XXX] the Orchid’s again reported from up the simply past value. value substantial book could a that a the week, on The markets price returns potential reflects MBS was figure XXXX Orchid dividend. announced XX, the book April last and This XXXX declared available to the because the to on markets shares in we same return at discount
via Orchid. shares we levels to MBS forward, of markets and very recover, or via indirectly in direct to low attractive, to remain to funding continue investment securities the be Moving anticipate investments either
In in on fallen. rates X% yields given as the the to any Prior to to March feeling have in month. its X.X% impact COVID-XX, depending prepayment were yields of full on assets were generally of aftermath, our speeds closer X%
approximately just XX over weighted However, funding our are were now costs basis before points. they while average X% March,
The starting prepayment to in before rates in April. recall speeds was the decline in increase February during and led speeds speeds, seasonal the typical of interest to and in February. steep lived quarter and slowdown slowing quite March January XXXX were respect third With seasonal the fourth short elevated as
lived equal Royal portfolio For the to when concentrated observed as immediately, reduced released of because in benefit pass-throughs was this realized XX% this above, MBS The month the balances returned in as levels Palm, less $XXX,XXX. February. loan described we portfolio our effect than of short approximately remaining concentration of the was with speeds or to
interest supportive securities helped high to sensitive We keep speeds our prepayment net margin. this of will of in less concentration prepayment contain incentives our
attempt continue securities. we a high the will concentration to portfolio, we such maintain to As rebuild of
the to add ended cash deploying we have million the approximately [ORC in million unrestricted X.X X.X in quarter we quarter despite to million X.X ended, approximately still with unrestricted since And today. Finally, position approximately shares] in our cash.
hedge As extreme during February our market mentioned, we in positions the of closed March. and most interest rally rate
our low funding rebuilding current lock positions the rates. was book in as hedge our portfolio protect from the well levels, As value to at we anticipate as rising rebuilt,
which IO We from have approximately also and in invested X% of high our rates. protection securities, offer IO capital inverse
With our Island our the the realized coming equity quarter, will this purposes in respect fees shareholders fee to and for use advisory XX% management first reduction its during months. lower an services approximate management Orchid segment, in
the our its is equity disclosures, level. has grow welcome the we March XX, in partially future, has We to see will recovers indicated to Orchid fee XXXX capital increase. revenues able public To news. base this shareholders further the continue For recovered extent, management recent Orchid its from and
with needed to we losses that In our to necessitated we The allowance exploration. our decline doing be will prior in Orchid management portfolio associated take tax net their tax projections asset our we the so, net fee we operating Palms able and extent our review estimate we valuation estimated operating utilize Royal additional losses. an of MBS Island the that million to use XX.X from deferred to against revenue
of at Advisors advisory they as light going in developments continue occur. will to the Royal or to at We portfolio forward either Bimini revenues projections MBS evaluate Palm our
to in utilize to I that this plan want Royal of our NOLs execute Palms to we tax on later effort to strategy continue our an decade. stress investment that expire organically growing However, portfolio
that events to path. our and we intended generate able back, appears continuing cover precluded to cost execution not to of on related The us have not our we strategy. it sufficient revenues have stabilized, have will the Orchid resume stopped Now set – us from and but pandemic our be COVID-XX
Thank call you. operator questions. we now the open And up to can
