Our business strategy
Our objective is to provide attractive risk adjusted returns to our shareholders primarily through dividends and secondarily through capital appreciation. We achieve this objective by selectively acquiring diversified assets consisting of:
- Residential mortgage-backed securities ("RMBS") for which a U.S. Government agency or a federally chartered corporation guarantees payment of principal and interest - commonly referred to as "Agency RMBS"
- RMBS that are not issued or guaranteed by a U.S. Government agency - commonly referred to as "Non-agency RMBS"
- Commercial mortgage-backed securities - commonly referred to as "CMBS"
- Residential and Commerical Mortgage loans
We generate income principally from the difference, or net spread, between yields on our target assets and our cost of borrowing. Leverage is employed to enhance these returns.
What sets us apart
We are externally managed and advised by Invesco Advisers, Inc., ("our Manager"), an SEC registered investment adviser and subsidiary of Invesco Ltd. (NYSE: IVZ). Invesco is a leading independent global investment management company who manages, among other investments, Agency RMBS, Non-agency RMBS, and CMBS.
Our Manager draws upon Invesco's Worldwide Fixed Income investment team of over 120 investment professionals. The investment team will also utilize the mortgage market insights of WL Ross & Co. LLC, ("WL Ross"), Invesco's distressed investment unit and a subsidiary of our Manager, and our Manager's in-house real estate team.
We utilize our Manager's knowledge and expertise to seek to generate an attractive net interest margin from our portfolio. We focus on in depth analysis of the numerous factors that influence our target assets, including:
- Fundamental market and sector review
- Rigorous cash flow analysis
- Disciplined security selection
- Controlled risk exposure
- Prudent balance sheet management
We utilize these tools to guide the hedging strategies developed by our Manager to the extent consistent with satisfying the requirements for qualification as a REIT.
We also benefit from our Managerís comprehensive finance and administrative infrastructure, including its risk management and financial reporting operations, as well as its business development, legal and compliance teams.