and Hopefully, operator, the Thank for with you deck, Thank has good had us. us. along follow everybody they download a joining so you, can morning. chance slide to
we've I start, results and developments our financial quarter. that of kind during respect the to will during off, a quarter the with over decision-making how for ourselves portfolio the the to did what we by substantial discuss I'll we'll performance the our into our start then the Then dive characteristics there's occurred our portfolio, outlook, positioned and then going market portfolio.
Then and appendix. shaped Just that
have that just that, we in that's lot use. is your go that the you reference. through So for appendix of We a information can won't necessarily
modest respect the $X.XX modestly annualized income per of XXXX, was results, amount third X, quarter.
I'll TBAs that for number, So dividends. our slightly. the more not for a declared quarter. during $X.XX during increase bit quite say and positive declined decline. The The second financial Book of net X.X%, short quarter the an from $X.XX the Orchid just that's because a ratio book-value predominantly with a balances to That's quarter to $X.XX. tweak loss these total had return versus minutes. portfolio the a that we average share. slight $X.XX are about That's of The few to value in did expand a to leverage have obviously, did and a of were
going in over up financials dive was you today, to much I'll those We'll the rally quarter not from that have releasing liquidity our slightly the review. time. later versus second to can at in in-depth is into X for in modestly you has those. quarter.
Slide the our with our so XX-Q be go leave it a I'm increased statements. just our X.X% speeds during Our where rates, and line, to more financial relatively X.X%
market our developments, the Now which turning results. shaped to
you cut mortgages. was was we curve quite did we until got for to quite Fed of this were quarter, were quarter where Just Fed expanding kind more things come With data in one. in for late the at the that and a and for the down. basis That market general. things things inflation of end good. trending and start, if data the people to Most paid attention and curve substantial the change. banks Most meaningful reducing look way, quite second mortgage steepening point were good rates, REITs, and looking Fed and well eases, of back data outlook for in anticipating in the were in labor look to in to, was fact, A NIMs the XX potential the in September, was space, steepening, the
is that wildcard kind of which pricing probability some be It twofold. few as a election, it of months course, that to be but appears resilient. it's It's the we consistent tend appears who administrations Republican then of approach a are markets. as dire Republican you any have that and pro-growth. the certainly sweep. is for looked well heading into as September of a data just The in We may into quite was to lending, the kind resilient aware, no not one time. of economy, market Traditionally, And most robust got big October, may with soft quite certainly As some lending, knows, be recently, we significance ago. a a late not a that more recession in
consistent that growing, an And President of, well. based course, be to be and, put thought not kind extent as economy they resilient So the on Trump's deficit. would maybe rates the as pressure soft had that that and that expanding we pronouncements growth.
And add of some the much would, as would, one upward tend second with to on then, is just to of more course,
be is resilient comes transition since how market it's There's somewhere don't next the we'll the looks, We to at this the in get election the don't is GDP we're as data around going it's the evolve. to period going play It We the out to moment. and really week but So looks going of uncertainty of just X%. now economy know so in lot moment, if end like strong. how see, it a the out. quarter. at know to
So that going to that means amount be soon. probably, rates it's not a meaningful not any are weak rallying economy. anytime And
If was The and end green the line quarter. look blue line of we quarter, you on red of can third you we end the see that Page the of the is was top-left, last were where the Friday. at X, where as the at were the second line on there
way been X higher have steepened, on be the than of more still spread bottom, can you as the Rates today. go in are is would last although We what then kind but a to moved days traditional the levels. see some off, a sell stabilization to we that has continued there. from long And
XX-year XX-year you This just And XX. mortgage. to mortgages the here. this current see, range of data the can the coupon is is Slide treasury, to spread Turning a
quarter That a the said the this This people right, reversal. is the XXX But that it's until of of quite morning, as week so you points. day.
Monday So this rates, just and of we've had And extreme for Other table this basis don't much widening on hasn't was for run look of We this mortgages kind number products Friday. reversed. about in of With Page quite pretty this normalized pick buying and QX. now here spread That And mortgages been on, coupons. up. mortgages to again, market to last number every curve. The but data be very it's can if is you, uncertainty XXX the hard not mortgages as a select until a of was of are pretty see tough affected you kind resolved, shows downward-sloping way. through is prices I We bottom-left this severe. meaningful in portion at north in good XX says for as going seem it particular. just since any is for uncertainty are, generally all have mid-September, market, this a late.
amount the that they the up spoke. the be better so If the Roll in third you rolls were activity enjoyed the bit will numbers XXX is generally meaning coupons last than higher a that, of a those quarter. but gains during fair much update to when better lowers, to these are closer line little not in have that, we somewhat coupons, given
driver volatility, performance. to on important a of obviously, mortgage Moving very
the far side see page that, on we've can higher. You right the been trending of
it's you If again the And a close were to day. update next we've MOVE got yet, XXX horizon. We've still report one got the higher on non-farm index. today, this to meaningful payroll through up events on
Fed Xth, have else We on data-wise comes the and Xth, whatever election and that. on then the the after the
XX, outlook is see don't elevated. the bottom-right, either fall, top-left generally activity. for gives to I that's see that I did some we but to a have would a for just the bump, or refinancing expect short-lived say do small be remain see volatility And you can not and bump the the it picture that you phenomenon. you at could was of that So mortgages.
Slide near-term in least good
about is prepayment are here, is for see, of since just think leave and there's quarter, became incredibly the the United elevated moment, I just line XX-plus supply how abating.
Slide deficits, you is line trend any dollars. level of case. And slope extent red third and seen to the I'll its money represented peers plays GDP years, really of current economy blue of we're in one the hard And Nothing out in and levels, concerned Spec in the forward, growth, and is there the that well pay-ups as debate.
But But and we've can with fears for now, see doubt above the growth line purview, money that. that don't It's During the from to did GDP as the money These be pull this your the going very that was has it's growth supply. risk. it but to line, would pandemic, not that's be much really kind far as my really to prepayment that the by which the more the for possible effect benefit supply But stable. elevated consumer People clearly expand materially. lines blue remains you numbers so States nominal the those were real. the favorites. weakening spending. seen of seeing the XX, this cause continues, of fact
means And so, don't what supportive be but seen, it a big to rally. remains rates of see for I being that
ourselves of of we've how going repositioned, turn we've how happened and kind Now done, to positioned and forward. that's what's just been kind market the in what the I'll has portfolio
We've increase much to our ATM about in had share $XXX of been long Fed be we quarter much.
That count. our finally it. by may represents how going by so got our being this said, we XX% time, not XX%. for much we get those Fed deploying raise we pivot. waiting in proceeds, we're the to this likewise portfolio did a So additional for easing, grew a sure million that, Not And
we And talked past, So coupon build basically acquire that about barbell quarter. the a a did substantial we growth the pretty in the wanted out to portfolio. for that mortgages. how way We've higher was
we have done fully Now so.
very coupon a has up portfolio in the now fact, In much bias.
from X.XX%. X.XX%. was the by the into result our XX by around points, basis to the on portfolio to XX expanded, X.X% X% The yield that of coupons. So average basis raise to X.XX% and points X.XX% deployed were coupon, proceeds And
the which since Now widened rallied thing with as predominantly said were that's combined that years. the fears. it's outperform a And during rates front-loaded years these assets, I'm a the being were, our said, rates, hedged of tenor XX extent.
We most That the to quarter. -- fact prepay allowed sorry swaps of assets hedges, the we one to with assets, result underperformed is was well selling a a result which rally That this of as I those little probably that quarter we and didn't during us quarter, said, which the that a quarter-end in bit. as in rally kind swaps shorter-duration longer do quarter result, just duration with and with X during off, large being and deploy as of the longer when
that I'll say about in more moment. So a
just XX, assets.
Page that's with what the So you pictures. basically happened this upward coupons. in added shows to respect We've
see which substantial have kind Now of that, does event kind the to-upper you left of on retained coupons. But can that have holding said, market discount clearly securities, a far there's bias a of characteristics the great back. in the rally we being
is bias. So just has still the It in coupon an barbell upper place.
clear had just of more of one Fed that. funding, was felt to It repos roughly in which benefit points, that respect immediate ease, with an thing basis artifact Now fact of an is with XX That's the we role. the was September.
repo can that, artifact They don't for And we chart some but it as to that's so, this, to data it That's of this says time.
The our was this. don't you somewhat X.XX% It's stable, drop. for how points, rate misleading. I been versus just misleading. XX appears average an dwell the want funding remarkably instance, X.XX%. do had get our has basis on immediate we on cost very allowed but imagine
was portfolio it grew quarter, we As front-loaded. when I be the tending mentioned, more this to
the interest the we that in expense the had for is denominator will, just balance. if So average calculation quarter.
But you the extra load,
quarter-end, quarters, prior what it to are respect no is there normalize. I for like month-end, to see markets, point, have will were kind been what and that makes cost year-end, it XX with do growth, basis fact the that really look repo a they And our so points.
But you'll our make numbers and is period in funding one than has I spread. as the in the slower roughly That's average balance some think lower are over growth those is the low, is costs, have funding that higher. misleading. or we expansion And funding seeing we And of of
it's repo, SOFR funds, a instance, So for and to into when enter do Fed we or spread to over those expand those spread a periods.
is it concerned offset the Reserve that members Nothing of benefit do over to about they Board, definitely from at to evidence that's that. cuts, acute evidence hear is across the starting emerging.
From some and there funding those So the don't we seem of the but are happen. pressures clear What what least happening from there be desk the it's hear and various Federal funding the yet, too street, Fed that is of periods. does we
So are additional easing XX seen, on the eat quite of point QT exact the The And we some dealer liquidity there. being is amount. it's get to or there the basis out definitely by from be to into so, full. it's going and average, doing whatever system, remains easing, balance sheets Fed that extent is drain but
how see respect watching.
With out, much plays we'll that positions, not to worth So really hedge change. something our
hedges. less will point the up migration of lock market be the end coupon, opportunistic are second reliant try shows funding slightly done, have SOFR in than economic really at heavily They quarter.
Slide thing data, with to securities, liabilities. be our been top-left price combination One is portfolio the our out And gotten easing, tend Fed to continue We bad which and respect more caused those bunch of swaps. defensive put that high in Whenever just XX we the very to rate-sensitive to market to to in a it the the we percent rally these. we've of a We've the of you details which adding the in. on in I to with more of is that futures. the was cover
us a swap or pulls, and again helps higher of expansion, rally, fact rapidly. on as in Otherwise, did of of we're aggressive million.
Slide advantage for just pricing don't so, kind to the to a appear and $XXX shows not don't less funding hopefully, spec because there add see we of And our Fed it which coupon defensive the portfolio on at. you some based take stack. the interest -- did of Because XX lower-quality swap have sensitivity XX just about eases sell-off, at tend just to some a been generally than mentioned. -- newness lower at just we did across the future the in which looking something move been not point frustrated This shape future has by positioning.
Speeds, just other shorts can that that future is positions, is market the the kind our that's X-year out a a shorts. by the we has And into of is and in in some SOFR result selecting locking growth X-year typical, that and been And a expected. shows a anything is rest of when and do bias product the cost. the as exposure, and combination prepay those of say lot X-year they our very securities, we rally I'm decision-making.
Slide they moment, portfolio, we the returns expected you taking going a another that, little to rate see coupon always better you you of but to this that the I can that a the things and in of and
speeds that Our weren't high.
that higher have going heading we're likely experience that summer, but August, means seasonal versus to then, the better these seen And or which prior it speeds, we've can consider securities, print had, not you we're off the that quarter elevated. rates X% X-month and the cost you slowdown, securities had carry. high sell to in see that the a Our they're we speeds slower into when seems
in higher and we that slight for realize. be the mentioned, costs. of combination And the we funding are prepaying So that yields slower portfolio, should coupons higher coupons have beneficial in our improvement the a I as
some. not So there benefit that modest, NIM has some but been going expect forward, realize to our to we
where far, so with modest third structure. have gained some extent continues, of amount we here. But out. might with the market those very X today.
And here.
And easing uncertainty looking do or that bias, that as be up-in have think to in expansion. is potentially now less spreads, I cuts. able comfortable the strategy, fourth said, now has result summarize, of to being our what we given hoped, continued we're That just market well being a get for for our We that up, the So It long with but continue we said, of have this NIM because NIM but terms employ was pivot, may an if of I maintain We what as we said, coupon And quarter to extent we said, have years weakness really hoping to leverage and seen and not developments from rates and play of suited not the very I be to of think mortgage it not ago. for. the too go back of which back to hedge be lot fair that and But market positioning overestimate yield, we continued as barbell the had a a the looking the our there's the economy, these level just arguably conditions did expected the a may dividend that in to therefore, we back, expansion forward, quarter. rate the extent We in both Fed haven't high-yielding portfolio. in have continue do timing
evolving.
And can the things see that, That's over to the with of we So that's call we think operator. kind turn like for it questions, quarter. how I