Robert E. Cauley
then discuss to economic operator, you, and give the brief of the to you we morning. quarter faced XXXX quarter for joining Thank a our Thank fourth you results. backdrop during good us and results. Bimini's discuss I'm going overview
we approach of pricing trying adjusting to end the monetary the as reaction usual XXXX, was always was As policy levels economic accordingly. driving to market Reserve's Fed's data data discern the the Federal the and
pronouncements index outlook consumer previous XXXX. However, revised policy. in The October regarding for months, monetary was higher market much February was Fed early the although necessarily pricing for lower price not November consistent and of were with data than this public the
as market At the time developments quite down was of had the quickly. its interpreted and coming peaked evidenced release, inflation
and incoming economic data appear economy the XXXX slowing. the of with to assets peaked would grew a XXXX. quarter monetary the be This during performed Fed confidence material the sentiment loosen led very had course that the The change consistent inflation quarter market and to to fourth the was of and thesis risk over that need As policy pivot fourth start the to tight well. this later in in risk
the negative, XX. up returns The were Agency X%. MBS full year for XXXX of market
MBS was quarter. comparable of XXX the for for which duration not basis than uniformly the higher However, fourth sector the positive Agency quarter was returns performance sector swaps. the The X.X% posted points positive fourth of
financial comparable March S. levels late the U. levels reached widest duration easily MBS Treasury S. to spreads in surpassing many XXXX. By level observed highest also since Treasuries in years. crisis, their the The Agency reached U. their October, yields
Agency these triggered improved, rebound October asset risk as turned reached The likely late levels market continued were viewed spread sentiment attractive. and MBS very early by classes other extreme like the into was As XXXX. appetite mid-quarter and in most rebound sector's
At monetary the policy clearly inflation, the look in in to Fed slowing had market beyond was outlook to diverged. inflation of the reversal, market namely and focus a path slowing instead economy. the the this be for such the successful and step policy perceived economy, began ramifications Because the the point, that Fed's of of this the process going on market at
in the the on I the evidence or change slowing and November further a data of of pivot market As or mentioned, due part slowing of focus occurred late to economy. October inflation
data in rolled has accelerating. However, as growth slowing this now again maybe trend steady evident appears shifted materially accelerated to and longer fact March, has no into employment all inflation be February and slowing, of breaking XXXX. especially Growth, higher January the with throughout sharply
for policy markets market the rates end with monetary the The pronouncements considerable and Fed. back rates likely by at these Fed's the trends than market is Reacting and has take the recognized into future pronouncements, higher various even period. the to XXXX, in a resulting indicating need increases alignment pivoted pricing the of public to in these anticipated restricted
and now for the XXXX. of In additional a pivot Initially effect, done lower tightening was the towards market anticipating round restrictive nearing back trip. to policy Fed monetary the and has expecting a rates balance
to back of with early have results the October quarter much last first delivering through March. and the XXXX give of risk in XXXX quite November of of solid of in poor summary, assets quarter volatile, the performance XXXX, been and In returns XXXX January of only XXXX February from
faced operating environment the since we last that's spoke. we So,
million, share and to per resulting equity price to million $XXX.X gain. XX, $XX.X XXXX, of Orchid in during quarter (ph) increased September unrealized income of [$XX.X increased million] from Orchid December reported its quarter For share XXXX. at at a the XXXX $XX.XX per fourth $X.X shareholders the million $X.XX Island share of XX, net from
unchanged the quarter dividend the beginning although the as for Orchid’s the higher dividend of quarter dividend for quarter balance was down was year. rate for in was slightly effect third the income XXXX at rate the of slightly the than
$X.X were revenues service Orchid Advisors unchanged Island quarter to at advisory Finally, the essentially of Bimini approximately management third million. from related
XXXX. were of during For reflecting $X.X approximately the versus at in million Orchid equity revenues the increase XXXX, $XX.X million share and shareholder year, advisory all significant Island service issuance
With cash throughout Palm, year stabilized during evidence our grow fact the respect clear latter until our our quarter saw to did the we market redeploying intention to MBS was resume the in growing before add Agency did the the portfolio. to Royal MBS the position The portfolio. portfolio we modestly to of as and half stabilize case was had the fourth at the most of cash
XXXX MBS approximately the added recorded unchanged essentially quarter $X.X increase of Agency elevated fourth us in to million $X.X portfolio. approximately million policy net the the Fed offset caused of subsequent for which pause has our new million market We we plans The million. by in the early market and pass-through these in in softness of to although portfolio the tightening $X.X mark $X.X added the a unrealized paydowns of MBS, the were quarter. For The for recent gains now. structured was first further was growth expectations of during quarter reemergence
the $X.XX agreement $X.XX for With results $X.XX from expense Palm, quarter million the XXXX. the down on million to was on versus was our million. million million the the $X.XX Royal $X.XX $X.XX interest income portfolio quarter. of respect to increased therefore the to quarter from repurchase the however, MBS of Net Interest of portfolio quarter third funding, interest in for income third for fourth million approximately
third quarter $XX,XXX the into quarter the dividend our of declined from As income by from mentioned, of XXXX. Island Orchid shares fourth approximately
this three CPR high the useful X.X% from XX.X% Finally, speeds rate declining environment, to very quarters fourth and the CPR third months interest prepayment for during remain respectively.
Fed forward, policy. long rates incoming the to while a funding monetary and variable with began. Looking how into to process has the year continue We and not lags, with and responds that respect the removed all data restrictive works policy Fed well are know been from yet considerable economy, it will monetary we watch accommodation economic the since territory, has
slow economy the for Eventually, Orchid and will will time, both the effects will hold that accommodated the and inflation At take pools. of far tightening become more market Bimini the Island. as
Royal expanding and net MDS sector our to In well. do appreciation potential such of would interest by services advisory by our Orchid portfolio raising capital Palm price a an margin at scenario, both at expect potential into we assets our
Royal income taxable harvest interim, In the we positive cash continue to and Palm, continue to to tax us enabling flow our net operating remain generate at losses.
call concludes That to the and questions. my open prepared now up we can remarks,
