Our Strategy

We invest in Agency residential and commercial mortgage-backed securities and finance those assets through secured funding markets. Our investments can benefit from implicit or explicit U.S. government backing through Fannie Mae, Freddie Mac or Ginnie Mae, resulting in minimal credit risk and high liquidity, and have historically offered higher yields than Treasury bonds1, consistent monthly cash flows, and access to financing across market cycles. We actively hedge our portfolio to manage interest rate risk and seek to distribute our interest income, after financing and operating expenses, to our stockholders. As a REIT, we distribute the majority of our income to stockholders, positioning the company primarily as an income vehicle for investors seeking exposure to Agency mortgage assets.

 

1. Based on year-end yield-to-maturity data for the Bloomberg U.S. Treasury Index and the Bloomberg U.S. Mortgage Backed Securities Index from 2016 through 2025. Over this 10-year period, the Bloomberg U.S. Mortgage Backed Securities Index had an average year-end yield-to-maturity of 3.42%, compared with 2.69% for the Bloomberg U.S. Treasury Index. Source: Barclays.

 
 
 

Portfolio allocation

 

Competitive Advantage

In addition to our team’s extensive expertise managing agency mortgage investments, we benefit from the insights of a global investment manager1, which informs our views on macroeconomic conditions, interest-rate dynamics and broader market risks.  Our deep counterparty relationships further enhance our ability to source, finance, and hedge attractive investment opportunities.

 

1. Invesco Mortgage Capital Inc. is externally managed and advised by Invesco Advisers Inc., a subsidiary of Invesco Ltd. (NYSE: IVZ), an independent global investment management company.