residential higher is quality nature Fannie In pools. Lisa. Mae are believe and hedge. two have borrowers, lower profile, WMC CMBS that offers a portfolio non-QM The asset LTVs a these provide efficient quality attractive excellent sensitive our on of our is simplest agency high cost backed balance We a against and convexity classes predominantly with credit loans an mortgage program holdings form, and other. commercial profile to our focus non-QM good Thanks, of value that to this, yield assets pools and agency its each quite mostly loan to complementary a relative
overall and to highly market portfolio the the for of enables these conditions securities addition, that In it. liquid available believe size of nature financing quickly fairly abundance us call the for when we adjust
have to layering is also a opportunity certain avoid our We over growing reach Western profile. and market cost credit terms a securities of wide more a on that whole in management that step commercial opportunities, involved allowing This mortgages set collateral, counterparties without manager of program industry having to borrower Asset in experience of and set profiles, us to on market takes properties mortgage our covenant. strategy and backed as of purchase form. to the to source in includes whom can risk WMC, inflexibilities our have in one best resources the strengthens securitization class. expand loan transact the Besides commercial and compromise additionally We being loan further, further with control skill the
were holdings particularly of and year, performance our fourth the year. the assets we our for XXXX sensitive rotating made to to credit Turning primary solid and CMBS performance portfolio’s the quarter significant drivers agency out the full for the our changes of during
to last we and exposure mortgages the credit our overall Over sensitive have years, X securities. increased
the December adjusted up represent XX% XX% of of beginning XX, the sensitive As portfolio, of at assets total year. from our credit
while As of part the portfolio. earnings process, volatility, our leverage overall the of value this book all maintaining have reduced and power we
prior from end, mentioned, at Lisa X.Xx, X.Xx leverage was year. As year our adjusted down the
been the commercial. but approximately of residential the we credit in In our portfolio primarily commercial has on loans. portfolio of whole XXXX, sectors whole XXX of billion to invest added to across over $X.X focus residential the market, of loans and sensitive Our several million portion and
non-QM and XX% bridge loans Our credit make overall profitability. including and our now contributors meaningful to residential are our up holdings of sensitive whole nearly
LTVs, non-QM approach with on repay. focus borrower’s The been lower loans to underwritten to desire demonstration loans at borrowers repay. are high of rigorously market to Our quality always ability to to the which borrowers’ is a has ensure the the
the remains of market US appreciation and home phase normalized real more is housing view a remain estate Our favorable entering residential modest. price to as is expected
commercial of variety combination credit side, CMBS types. loans sensitive assets. commercial backed whole nearly $XXX our the million a These by On XX% own of of securitizations approximately represent a includes and we property non-agency of credit which investments
given outlook loans as saw We ongoing fourth returns. of attractive expect and the expansion whole quarter, to job additional the commercial $XX the on market solid. economic our over estate commercial In favorable to fundamentals acquired achieve remain risk-adjusted million we we opportunities real
target a able This of example solid loans We access credit stand-alone short on our We the strong that WMC fundamentals secured and is loans, to continue being leverage early, these interests with REIT. term properties opportunities we are collaborate often in by Western we to key as protect having get platform like to assets investment a mortgage are and of that structure. the able wouldn’t involved as that aspects good have because to lender. deals covenants
partner continuing one-year for of partner, two opened facilities one These financing mentioned, Another commercial each – Lisa residential us with warehouse the duration increasing financing. year-end, of financing. the and security After as is long-time we focus loan. longer-term offer committed a for our
subdued continued a are growth policy. moderate and more monetary Reserve neutral with Our current economic Federal expectations yet U.S. for expectations along a inflation
that, continue please emphasis As management differentiated ahead. investment believe well Operator, while our portfolio our core the focus open such, risk credit-sensitive we’ll balanced positions with to strong go preserving generating our to questions. we With of that a value. call up us on holding earnings book on strategy an investments and
