of everyone. be and our today. to joining print discussion copy you of us the had today. you operator Thank has chance Thank I deck. a will That slide focus good morning for hope everybody a
Assuming of everybody be on is ready, I starting you slide will give we all three, the as the rundown agenda.
will to guided and we of portfolio. will our will we our et then we decision we affected to about financial Then few a credit cetera, a hedges that quarter. talking making. financial we minutes And the First, the finally, brief turn results. And spend market discuss made will have and results our characteristics, portfolio highlight portfolio changes developments for the have
Starting our share return return And declared quarter $XX.XXX public X.X% $X.XX the an dividends. the the In a derivative per those since agency return. was quarter, as XX, the assets of the initial well share of for December $X.XX $X.XX income X.X%, swaps. the with per the just XX quarter. was year mentioned. assets, unannualized, quarter. end generous was including per at income share XX.X% approximately per on $X.XX. I $X.XX share times and And very unrealized our share rate losses we declared of our of at net dividends. as interest generated net on of of previous RMBS $X.XX all interest or common have gains $X.XX Earnings common instruments excluding $X.XX Book Economic includes value financial our our per realized company annualized. for or the points Orchid basis and This increase Island of from offering, our fourth highlights net for
context Now before facts investors background I listening move and maybe REIT. We give forward, just I not some for Orchid some about time in to mortgage have us basic is Orchid. long just reiterate those an take and who you try been to do for new provide a for and agency credit. want some
in Our versus have very own generally and in to pass-through our although portfolio Mac focused. is on Mae. generally form Fannie rate Ginnie own tend conventional, or XX-year towards Mae invested generally be XX, We assets We do bias years. to market versus so we fixed versus securities And depending conditions. CMOs, XX XX Freddie tend a those we
inverse sequentials. late and when be We structured XXXX, IOs. of high use instance, were generally IOs owned hedging do And we tend purposes versus have backing for We for carry generally. in some those. up, So REITs concentrations shorter those not IOs to
late again, those reiterate At although view very in in that or we do other could the cycle market fixed-rate to conventional with To point the that wanting focus the not credit this mortgages change to some the non-agency ourselves as of factors credits, matter, the for and future. we respect there. at and form market market, the point, any being XX-year use be of discussion, not that which, on To will add the affected especially securities.
six. slide to now Turning
start with interest do, always we the As rates.
is the third previous end ended of movements see quarter of The the line where the the hand side, line red on you in curve. we the treasury blue we curve as the The the And of left curve. is the end at the swap line the year. where represents On year. green right, the and were
through quarter. high for was and XXXX. market speaking, And quarter, prepayment number continued a favorable remained examples. the entering investing of the the mortgage-backed high has caveat, thing, is to throughout activity for into go one remain leverage conditions were high through one the quarter But going and Orchid generally I So am to
left, of that see into, higher So actually the by rates over on to as sit line the amount. put be course that But interest blue the quarter. where the meaningful moved today, below a line you and can would we
the two well basis probably XX XX-year basis So The is XX points, is lower. XX. more points than over years approaching
very we favorable movements But generally fourth was it for since significant year-end. had market So have the quarter, environment. a
the treasury slides backing time swap. all mortgages. XX-year thing, good up. subsequent to spend to And a tenure I just Sam am of going on you movements you and of a Generally, note, thing Turing the the lot in rates seven shows for these. slide saw
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only XX In it's points. today, basis about fact,
we very in a were So far cry back XXXX. from where
our nine to the the Now, slide mortgage see we on market. of XX-year performance top various left, focus fixed-rate In changing the coupons.
down noteworthy They bottom even lines the for price. the you Fannie performance. decent more the instance, in given and in actually for when see, can are That's ticks at look Xs, selloff are up line, four you treasury. X.X it's But As they Xs.
up, XXXX although backing of were in up third poorly. were the mortgages rates in quarter these performed price, very they while So
In in in certain the on fact, days up. they down were instances, price with market
just that's of some So up. catch
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the when if the case, soft, the side that page. case strong As the always and is see is market can pool roll often of you spec is very market right the not
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general some continuing market on XX. slide indicators more with Just of conditions
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a So again, of favorable market another instance condition.
all decent a want Slide XX for of spend to few is backdrop this. on discussions is mortgages. for us. I This And moments a new very
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the fourth course the though, of Over quarter, it declined.
very So where another mortgages. instance condition favorable for
two got rally, into and number move with the the that we as quarter of ago. weeks X,XXX first over XXXX However,
end So this range of that's the in high above graph.
in reversal that. had we have a So sharp
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refi and number here As close that today, higher. the materially moving is XX% is we index, to I said, sit as
as for returns here the bond quarter. Turning simply takeaway to the we show here is broader top fact index. a risk-on across the period. refer quarter U.S. we The XX, The is of year. the the market the is bottom components what is various of on and XXXX slide for really that fourth The the aggregate to
words, well. risk did So in other assets
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component component appreciation. price of total that or a that return has So
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was a decent rule. in year it for general So as a mortgages
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want XX, a Finally give versus funding just rate. market to expectations the on Fed the of picture you for slide
We have four here. tables
which expected Fed midst the cycle look of September if bottom and at that see That tightening at On can the several end that But the market in left, see when dramatically. the is XXXX. additional the you you right, changed of you has the the tightenings. last year, was
thing be out that's Ironically, cycle out. the close for the cases, the funding have that is is was me case even actually lower. levels height that today, One Fed And every here as sit market in been let of years In expectations clear only even all gap point drastically and would several was versus we in market tightening are different. on the larger. that probably the they here much time
financial results, will Now turn our to I slide XX.
and level high eventually the portfolio discussion with will a off detailed evolve our kind start look more the the Let's discussion and returns a into at portfolio. of of
side, On for the the quarter. right returns show the we hand
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term XX, look longer to here. Turning slide a at taking trends
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column fixed market labeled look the is the or second rate fair value, which, CMOs. To if at you line FMV
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I a for minute greater discuss our the will of those we those bottom hedge pass I now. will in just detail. positions. on show the At page, in
prepayments as And experienced equates low month dotted slide. balance of this you of points. what digit I It's we This the line the XX, here just basis we unpaid of we level double over and given this life at portfolio. principal kind amounts of average a the is can are line, is in of represents dollar rather approach. XX here. what over of there to to reflected is, that's have simplistic amount divided the the look at prepayments at new dollar the the CPR. a Slide in another explain we look company. time red we what of want how a the by Well, is That that And prepayments. see, kind at this look showing
So CPR somewhere to XX XX the in range.
period above sold mortgages a see and treasury. in one has The significance But staying blue all off, of surprise XX-year we then rallied is, red with above were X% XX-year meaningfully. And line see, as election, our the XX-year high mean crested And that way you the standard back XXXX note had period. in the interesting result of and for what's time, the is, to you in we represents now since spike this first the and that time. that's that this created lot period for the in-the-money why the outside of our show was of there over long norms that deviation lines rates
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historical just information. I about won't is XX that anything today. Slide say
a Slide XX, of I just couple want points. to make
that our the credit ample On is the And retains fact takeaway funding. list from to Orchid this left, counterparties. we the access simply
we available the counterparties, both names. more number and of diverse the geographically, need very funding of than of group names type have to us a We and from
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supply. of mix than more ample and So counterparties a diverse
ratio. quarter, again our fourth rally. taken And high the the to have our year-end, want note did is not backed as number in slightly the rates we On the that we the as leverage was. as Since with it side, up up right that leverage down I we leverage show slightly, back back take up. But
four show some are now positions. is will our We say those Eurodollar the buckets the TBA I hedges. our of To hedges. top words about right left The here. our
running treasury you life this as off run of all bottom, which we our intention have in hedge our the then contracts only have place some the we as we no off have basically The instrument, swaps. year. instrument, a have At On and at to point the one been hedge and our that. Eurodollar in was can moment, see, futures adding
We basically to run those allowing off. are
With TBAs, those lower earlier, have we coupons. And the versus respect to rolls been negative. as mentioned X.X% using actually are I coupon some
can we actually in So so X.X% negative. short get do use to a drop and position the paid is TBAs because
to With it one, in it add was reduce it exposure the our reflects down respect it's quarter from somewhat futures, where at end swap to and the the in instrument that decision there the run and of third really bucket.
we right, bottom our swap the show positions. On
that since bucket really XXXX. fact year-end, the that to off in bucket. that to that year three just down As do We is was and you and swaps years have most of three where three three outside big change the we between reflects one see, years. any The were we actually, and And lie. swaps and year five not swaps it change five have That's one our in added broken have to the that. of running just
mortgage expectation up most to price we market's most has for three The to is the well curve. own. And market we other year five in hedge activity. expectation lines to with curve curve seeing you equal in and extent that treasury Fed rally we typically most way. eases The the beginning to the Fed also in get area reaction effective today think point because, the assets belly meaningful area, the And of often a in the as that's case, that rally sensitive what an market duration magnitude the the reflecting more to been changes, the of tend the that the in the are of it the is is fairly
the shares I XX. to want Finally, another And that illustrative been show I right out, really has our have, slide on grow just repo in It to that purposes. far the over share new the year. slide last the point the second declining. it's for outstanding, Orchid just to column, did want course expense we column shows per of
year, result, capital the a end times deployed at month. the beginning sometimes being the various month, the of As throughout of at the sometimes
funding being that column, declining. in If But issues abated funding you at to dropped we rates repo the at timing repo look have issues share more did it's X% expense quarter X.XXs. the wanted anything. year. point than resulted And some over but the noisy has just out issues per repo the the of the have rate markets costs repo reflects just then, third that generally have kind just in those been I turn back and into in since our of
been And the so the costs but the realizing to this number are has asset room to eases we know, decline. have don't and funding our we Fed benefit side, declining. Again of
With over turn questions, that, the I operator. to will call
ahead. go may You
