us you morning. Thank today. Good for joining
also of has everybody website download going as you that’s usual to And because agenda. will through. deck be kind slide Hopefully, our able I’ll as the through usual what walk been the off just we of
first they’ve just portfolio I’ll during The faced for forth. briefly positioning over into go hedge to I which our talk development the want outlook for go thing so so far characteristics, Then into of on and end our they’re position us then for we very also quarter. spend that the results going meaningful because our greater detail our quarter, go some one, market we’ll very do developments unlike calls, description a QX, our is to also, at highlights financial the our the I’ll mortgage participants, and about of results, been in But in forward. but and significant, especially most time are,
interest and the share derivative gains income excluding and So $X.XX, income instruments, share realized interest swaps. on reported had to derivative and of per losses unrealized with that, gains RMBS net share from again, slide per and negative just unrealized swaps. net including Island and $X.XX net rate on $X.XX, per income turning X. Orchid including of instruments, gain realized net We a interest in net of earnings RMBS and
in paid including of offering, $XX.XX in March last per dividends share, share public was the its initial per declared $X.XX declared XXXX. subsequently share of the per and the XXXX. end $XX.XX April Company’s value at XXst dividends. in since dividend QX, the Company And In Book versus $XX.XX at declared
hedges unannualized. also was is our to all I’d Orchid it’s point And Island assets None of just per For the available and hedges earnings occur. maturity. are of that in in or the the as assets they share, sale gain for And or because held total which at both for classified economic like are held accordingly, of topical, period quarter, the are of just our $X.XX in value. quarter X.XX% fluctuations fair value the for out, reflected
maturity available So sale. we have for no held with for or even issues
inverted. market curve In to Friday. and year the you further the two moving Now the can red to last that the through turning was of the developments. nearing end out can this also curve most the curve, there’s the all can at recent is as see their reflected left. Fed you closer, but of that the the the this further and see, cycle. points is words, if peak through here. slide, the One, In time, And line reflects hiking slide keeps is it’s getting other look go you rates on just of peak end one move X, perception we market’s the the of that And we
to expects the follow some point future. at recession market the in So,
that’s minimal, of movement not story the does points. that also at if you for XX, And to the see I can basis curves, we very faced. want that quarter out XX It the misleading. But point you look very these what was tell
In like fact, opposite. it’s the
have rate very conditions everybody that in lots quarter throughout happened you reacted if involved, market those it’s affects had in of has and in markets, high our And into changing performance. fact, just market market. continuation look first the of how conditions what a interest really we go terms XXXX. mortgage leverage I’ll XXXX, faced is ratio, greater of what particular in a later. at positioning, our In impact we in to And our the that and these And that dramatically detail and on volatile markets of profound
just in the faced continue I will through going what now, For we quarter.
of you how As And using as in kind as a phases, get picture And can if describe it I the quarter. can changed. you will. that tenure, of a things see, the you kind case of first the happened what see would in really, that proxy, of just much
started of February was which which of phase, very, the belief continuation end big and February, balance was number of a Subsequent was was non-farm blowout trading and market was yield The And north inflation a higher. in first strong. a nearing And over the that payroll primary kind the that on in pivot ebbing XXX,XXX. date Xrd, this we made just in just very And the early and rate X late The the X% of saw -- changed early on early treasury kind of dramatically terminal March, what that very ease. was XXX exceeded the funds Fed the rate ended XXXX. tightening market and of north terminal points. would or The cycle their catalyst was basis the report by got in Fed of pricing the Fed the tiered funds, in of start to February. that
in sea January. from where big were So, a change we
in little yield declined The a Fed one by weeks. the Bank XXX Xth of there Signature March, declined the case by and yield, around in in In then Silicon treasury and we a two-year the then, fail, funds Valley week. basis had basis contract future was points December the And move huge early over way two the other XXX points we another catalyst. had
banking that the Fed’s hand impact the force it So, going was went to thinking was the that to crisis going the market economy. to
And Fed meaningfully, occurred also the so you after again. as to Of The banks. treasury, conditions moved bank the of failed March course, to they’re we impact, their these steps balance moved and Fed steps buffer into as through deposits. even the to, significant credit of But That bank FDIC and they will, Xth. the taken after Treasury pivot that assume macroprudential and would also introduced the funding had would facility, work. FDIC tighten was seemed big to kind this term if March the April the around of referred and guaranteed that, the
kind balance on the that’s the preferred the especially strong, market we quite for going services strong. of and the moved buzzword these call core”, running They we shelter, the through it as were running still and could which quite Fed were focus ex and new measure, monetary what And April, inflation, work. into the to contain become “super Fed’s which the steps of in March appeared going has And that to still policy inflation. is was which macroprudential problem,
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in market implied what just volatility it just seen and all just volatile rates realized to amazing. we’ve are and very market of theme this a volatility, so, the And is market, contributes high, options
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us for of meaningful that’s our how So manage the kind background it implications and and business. we has
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taking the very continue the dropped. can bank If that over just expect That Valley two far And and FDIC on to off you Signature over Bank. Bank you bleed you note side, those that right would time. Silicon reflects line see
XX, top left. Slide the
pattern described. and performance You it can a the mortgages group see just follows just same select I of of kind the of
need kind then and aggressive so or there mortgage reversal and reason That’s forth much we precipitously, of bank did very fell was That’s and market. for banks rates market the going the reflected course month mortgage a Then taken has and kind rallied first that But mortgages a the so though off. did are be because well. two that hikes less to was liquidated. quarter, rates so more we to of the see sore face. in as early of started the and of Fed had price to there market just over the lagging The is FDIC we you of And the as combined billion failures $XXX that had an the very, even risk performance March, widening, that well. in to lot obvious and supply securities of that have
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slides XX, and the performance of just kind asset really XX On this class. mortgage of
you were middle again did QX, through But quite For income that’s can assets the that the of They mortgages of range, March. representative of fixed very -- see. well. kind the all
of FDIC the of kind on you last and things. crusher page come were I’ll As under, week and just out we commenced mortgages XX. point have moved bottom or April announced liquidations couple into and a on the see
so first April that’s of at column, top. kind And XXst, It it’s Friday. to change. year the pink The through date last says
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the So centric, the of at kind just QX late on QX, now. in very fact it’s it that going in is reflects market much for especially least what’s market today,
just Now of turning of things. on kind a out I this for point speeds. want slide XX, couple to our is expectations to
at look primary the you the stand couple prevailing and top that a spread, If the this out. is mortgage or treasury one rates between things right, so underlying spread thing and secondary -- rates
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goes that what of to be we So, if a we in hedges. for would our $X.XXX, the actually $X.XX which reflective paid about again, -- discount And negative accretion earned $X.XX. of proxy
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try to the composition term change that because chase to strategy’s to of opted We think long not costs, in work. in not we an portfolio the to effort have going the funding that coupon higher
will convexity, follow much think coupons, a the like But the very fed’s they’re in -- moment. end I’ll exposed cycle. we more this tightening to again, probably don’t about rally, the of the at the really talk We which higher a especially
total is in positioning. change return But our there slight that portfolio for earnings. very we shortfall But So, from forward, comfortable remain going the a a rate That the conditions warrant. is of if perspective now, intention. could with
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of XX The remaining important. history. about that. leverage going slides, Slide is is to ratio. is XX This I’m just pure anything not say really course our
On the we on our left side, hand basis. GAAP leverage ratio, a like of report kind
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it’s still So, expand we capacity that and fairly have meaningfully. low quite to still
think if that and and warrant, coming when time soon. is So, conditions we
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amount slide fair do our hedges. to say, this slide. XX, I to want Turning about
to First, give changes. of just the kind you
left, top you can They the our On did change. futures. see treasury
we did our pretty also a million position Ultras. As the the Ultras. I to mentioned, Short five-year It’s position. much That from moved to $XX we actually future was made We and note raise went we reduced starting some million swap some earlier forward and into added to changes but swap. shorts, $XXX.X capital change. a
the can maturity look what right you happened if increase. So you on see the That’s side, there. longer swaps
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kind QX. So, of wraps that’s it for
I Now, spend time what means developments just wanted as second us the forward. in kind talking mentioned, some of, that and about for quarter, I to going
FDIC may less looked on going once mentioned, that April, were macroprudential all they macro it taken be when said, Fed Fed steps over could the working, So refocus happen. they were the trying But two and the appears containing being what’s issue suspect the entered be assets FDIC And mortgages, the those inflation. these have have we to to that and to as those the a liquidated. I to banks, other auctions you’re have asset like took that last looking a take liquidations had but way And they months. fight over to and take still started originally but prolonged we out, may period of liquidations expected well, that and of they’re the planned, started from third, with be and going at the to given classes. than was mortgages I pretty week they’re agency
could And mortgages, and especially time And these Fed other over get sales keep the list is meaningful could could higher for length fact And the in the And that given -- this a of is inflation occur, the then rates own. development the market just obviously longer. our a and stay lower degrade we’re even if thing mindful grow. so, of favor, time coupons mortgage high for size bank the that risk. have investor. very there’s that could also possibility is liquidation that a the we that we there’s turns another the of even the could the of that risk could taken more And that over performance
a the them. given strategy these that’s with are in deal to our have risks address position we that those and meaningful, So, we place that face
the keep in is Signature of skewed liquidations mortgages if And to are be sold to well And countercyclical economy’s element perform eventually mortgages pivot. thing And the I I economy’s to that going the -- we to say think we asset. being one are Fed I and poorly, of types are rolling and do and is And we’re well that tend intention the they’re about I to positioned. towards roll have they duration we starts strategy our will think as longer to Bank said, we so, They think that that assets. do kind on is don’t follow are that those over over, environments. to very the the sound any pretty premise it, credit lower Valley going of much and want continue mind expect the when credit that coupons, based going portfolio that from to do a the Silicon which in
And occur. assets. get them This being so more longer of that that sold are asset well large are A an to that sold underweight extremely bode the managers offer assets would that are the opportunity would coupons duration these have lot components any the sector. and that of would being position, given especially index. to And if meaningfully neutral
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So, said, mortgage rally to you but be we extremely higher back look originations are be certainly and in to selloff the I or refinanced. rally, frankly, to if also think, coupons these they likely exposed into most as a going are a to coupon, because up all a ‘XX ‘XX, going at
look so, and very we’re to can to And situation fact face, our our continue current does fact, we given the of comfortable increase better extent able position balance the of positioning. be allocation risk eventually to in occur. to the ourselves would to advantage it with And even we that in add we capital take to when
quarter, it, of how that’s ourselves the forward. kind we’ve we’re going through kind gone first So, positioning of that’s how
And with call think questions. we the can I over to turn operator, that,
