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of We he's XX a said Harper, I the long to meeting, with years Gordon to time at spent bench. have are beginning the CFO, our been as joining and us deep fortunate us a Deloitte. And at prior
experience our portfolio MBS bring backgrounds both with extensive investment. co-CIOs Our and deep in
Now mortgage the let's talk bit a business. about
the quarter X cuts higher treasury Fed's has yields otherwise and climbed forced Fed's overly the with data XXXX, in to reversed XXXX. rate the path and fourth inflation Despite outlook in in again rates. and signaled abandon on expectation for XXXX of economic dovish Following the of recent year of optimistic the bond decline penciled at investors once sharp start XXXX,
releases, XXXX. and on more a climbed low of from totally XX yield trend above labor day the X.XX% inflation last a than treasury the moved the points on basis Following trading mid-April, X.XX% of of by hotter-than-expected XX-year data reported
particularly and spread inverted and at XX XX-year mortgage for an first treasuries The posing the negative remain points in level average REITs investors challenge banks. basis X-year of a quarter, yield between MBS and
until wide-ranging the shape. persist points originated fourth roughly basis sloping first roughly the a MBS traded within yield spread upward nominal flat quarter closing environment XX In its volatility range, to quarter, quarter. versus to curve elevated reverts newly We of the the expect spread with
XX-year return, quarter. inflation X.X% annualized portfolio The X first basis approximately of for strong to sharp tightened expectations X.X% economic in a by ARMOUR's the the rise and treasury contribute yields lower XX points basis in the half print total points. to heels performance first rates volatility points causing a XXXX, X basis by in of XX to ended in on XX OAS on widening for strong March spreads by mortgage a a Fed April's the
broad executed series sentiment Fed to volatility staying the quarter. on the portfolio ARMOUR of aimed second view shift longer, a yields repositioning at the trades higher and Reflecting for policy higher a of with dominate
premium First, we with sold duration higher approximately conventional and, tools MBS shorter in purchased XX% profile. of XX-year DUS our turn, a coupon
XX continue spread return of mortgage reinvest spreads capture spread points to and cheaper DUS convexity, recent quarters and positive into to to their in basis proceeds to benefits outperformance us compared favorable volatility While assets. assets, diversification our allows MBS exhibit lower XX
have mortgage Second, materialized. to MBS these of where in We of coupons of which the into a portion conventional from pools discount sold premium X.X% reinvested to our XX% ARMOUR stood benefit over backup lower still prepayment higher Ginnie TBAs, at deep trading speeds and rates faster proceeds discount Mae equivalents. while never with the
over XX% versus sold from the in coupon benefited closing ARMOUR hedges, par that most basis MBS treasury the trade of Lastly, rally March. spread
and X X.Xx respectively healthy liquidity. stood April of As maintaining at respectively, XX, the for years, market closed the portfolio's available levels duration while -- and X.Xx, implied on leverage
mortgages reasons moderate. priced the since scenario believe in value for to now Our path a a is quarter begin more We widening a in down and upside start offer of is where X%. a growth Fed and, book hawkish compelling the inflation result, as
favoring current Our About priced low April. for Around first are are valuations. mortgage and ARR's are continues target higher of mortgage benign of of that X.X supported assets and to strategy lower by half CPR for relative mortgage discount. in while The coupon attractive holdings a all turnover XX% which prepayment a to XXXX prepayments slow of at continues rates. still and well-diversified environment average due portfolio. prepayment our faster X.X quarter MBS, X% characteristics favor coupons fundamental assets specified elevated ARMOUR's experiencing with was speeds a CPR rate to in mortgages MBS are the historically
borrowings of at reflects its its haircut teens financing XX% the of to a end. points plus repo increased under of quarter, mid- In average with SOFR BUCKLER through around as broker-dealer growth a in to Securities X%. basis and affiliate. quarter generally approximately has ARMOUR funding of priced as benefit ARMOUR's markets weighted allocation its with BUCKLER's first This high
the profile the via the as risk As our turned cautious mortgage for to more spreads our second on of Fed. continue have political the of to quarter. in adjust market the indicates, remainder we macroeconomic trading we and interest activity data reaction environment participants evolving dynamically to new analyze continue We'll rate, risks
constructive further on we longer remain out, spreads horizon. the Looking over
the margin. on cycle anticipated much its to year, improved share of will this We that interest their expect leading eventually later start banks net MBS purchases Fed increase net easing
becomes of cut corporate decline We as increase to also may of more their buyers crossover date more investors, attracting to our tighter Fed to including MBS volatility that at MBS the certain, expect the expense want allocation first spreads. rate
to level We environment. continue that is believe our appropriate for dividend this
Thank questions. any first That joining up our and to take prepared of remarks today's the you quarter for wraps be for we'd call. happy XXXX,
