Earnings Sentiment

Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.

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Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
And at the same time, allow us to be positioned in such a way that we can do very well when the market turns
But we think if we do get the outcome of a bear a bull steepener that we could be poised to do quite well
And you can see on the returns of these coupons, the lower coupons definitely stand out with the best return potential
I mean we - margin call activity is very robust
I think that those higher coupons can do quite well
And you can see - the deepest discounts that we own the 3s, the 3.5s have very high wallet as a result, they've prepaid fairly well
So that has been a very beneficial fab for us
We don't really know when this period will end, but we know these are the steps that we take, they are going to give us a high, high level of confidence that we're going to get through this period
So optimistic, I guess, that you've seen some signs of life from the banking sector
Those lists went off so incredibly well and so much faster than we expected
So that's been very beneficial and is going to be critical going forward
There was definitely a more positive farmer tone
I hope everybody's known well
And with the deep dollar price of the securities we own, that's allowing us to increase a fair amount of discount, and that helps with our earnings
So Fannie 7 has a gross WAC of 795.8 and loan balances are very high
So good luck going forward, guys
And the realized yield increased even more from 3.81% to 4.51%
But there was a couple of reports out in the last couple of weeks about banks being able to unload some of their lower coupon assets and supplement their income with some better earning potential in higher coupon mortgage space
And we think that those securities are the best securities we can own to maximize our potential outcome in that scenario
You’re welcome
But given - unless we get more heights, we expected, that's pretty much where it should plateau and that gives us fairly comfortable NIM
Money managers are very overweight and maybe having redemptions
We have a pretty good sense generally as we go throughout the year where we are in terms of overdistribution
We bought a 30-year 6 and 6.5 coupon securities to increase the income of the portfolio in light of the higher rates for longer in the apparent case so we're going to be higher for longer
Thank you, everybody
The GAAP spread, and you can see it increased slightly from 128 basis points to 133 basis points
But that 12% seems fairly well reasonable
The average MBS portfolio did increase over the course of the quarter
That spread has been widening also, which gives you an idea what that the yield on mortgages are going up much faster and even treasuries those resolved
Good morning
       

Bearish Statements during earnings call

Statement
So obviously, especially since September 1, it's been a very challenging mortgage market environment
Unfortunately, October has been equally is intense, and our books down about 14 - a little over 14% through yesterday
As you can see, our book value was down just over 20% from $11.16 to $892
It was very disappointing third quarter
We expect it to be challenging going forward
And obviously, those are very big negative numbers
Total return for the quarter was a very unsatisfactory negative 15.77%, and we paid dividends again of $0.48, same as the last quarter
Although you also know we lowered the dividend this quarter
It's been a very challenging market for mortgage investors to say the least
Another thing that's been a challenge for us has been volatility
And [Gob], I did mention it's - we're down about a little over 14% through yesterday
And in a rally, they will not perform well
I mentioned it's down from 8.5% to 7.4%
Net income for the quarter was a loss of $1.68 versus income of $0.25 last year
Obviously, the market is very challenging
And as rates just grinded higher, there was really that lack of marginal buyer
And so that's selling caused lower coupons to suffer
That's down 18% from the average of Q3
And if it's going up, then it's hurting you, and that's what we see
And in fact, we're approaching the late year, early 2024 period, which will be the seasonal slowdown
   

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