A Proven, Risk-Managed Process
Seeking high investment income with stability of principal
Dynamic real estate markets require a proven and fundamentally sound investment process, one focused on
achieving a competitive dividend while maintaining the stability of the portfolio's book value.
At Invesco Mortgage Capital we take an opportunistic approach. We consider a broader spectrum of
opportunities and deliver a more diversified portfolio than most managers of mortgage REITs. Our external
management team performs detailed analysis at the security, loan, property and borrower level. We employ
comprehensive risk management with specific elements integrated at each step of the investment
process.
The IVR portfolio results from a series of disciplined and defined process stages, including:
- Macroeconomic and capital markets analysis - achieving detailed understanding of forces governing
interest rates, the business cycle and other financial conditions
- Mortgage sector analysis -identifying opportunities and trends in agency basis, prepayments, credit
sector basis and asset and funding sources
- Security level analysis - performing meticulous analysis of loans, properties, borrowers,
underwriting and bond structure
- Formal Investment Committee decision making - establishing asset allocation and risk boundaries and
evaluating overall opportunity and portfolio financials
- Transaction management - executing investment decisions through the sourcing of investments,
management of liquidity, funding decisions and the active trading of portfolio positions
The result is a portfolio focused on the road ahead. With IVR we seek to embrace emerging opportunities and
avoid developing market risks and weaknesses. In the current environment, we are finding emerging
opportunities in:
- Commercial real estate loan origination - with improving real estate market fundamentals, the need
for financing of commercial properties is growing rapidly.
- Securitizing residential loans - with the federal government's role receding, demand is building for
additional private label underwriting of mortgages
- Risk sharing arrangements with federal housing authorities - a key element of the government's plan
for housing is to encourage private capital inflows to the mortgage market
Through its proven investment strategy, IVR seeks to deliver attractive competitive returns with consistent
high dividend income and stable book value.