Q3 2024 New York Mortgage Trust Inc Earnings Call

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the New York mortgage trust third quarter, 2024 results conference call.

During todays presentation, all parties will be in a listen only mode.

During today's presentation, all parties will be in a listen-only mode.

Following the presentation, the conference will be open for questions.

If you have a question, please press the star, followed by one one on your touchtone phone.

Speaker Change: Recognizing our derivative instruments, primarily consisting of interest rate swaps.

Speaker Change: With the intent of rotating our investment portfolio into interest income, earning assets our investment portfolio increased on a net basis by approximately $1 billion and $1 8 billion during the third quarter and year to date, respectively, ending at $6 9 billion as of September as a result net.

Speaker Change: Interest income contribution increased to 22 cents in the current quarter from 21 in the second quarter and <unk> 18, a year ago.

Speaker Change: Our quarterly adjusted net interest income also increased by $1 4 million to chew on a $8 7 million in the third quarter from $27 3 million in the second quarter.

Speaker Change: And as detailed in slide 27, our yield on average interest, earning assets has steadily increased over the last few quarters growing by 23 basis points during the quarter and 48 basis points year to date net.

Speaker Change: Net interest spread was slightly lower in the quarter, but has increased by 30 basis points year to date our.

Speaker Change: Our interest rates swaps also continued to benefit our portfolio, reducing average dancing costs by 63, and <unk> 72 basis points during the quarter and year to date, respectively.

Speaker Change: 20% drop in agency purchase volume quarter over quarter.

Speaker Change: Overall, however, the portfolio is still growing.

Speaker Change: The agency MBS book is now almost $3 billion, which constitutes 42% of our asset portfolio and 23% of our capital allocation.

We expect the portfolio to continue to grow as agency MBS remains a core strategy for us in the near term.

The strategy trades at historically widespread and provides diversification for the credit portfolio.

Furthermore, the liquidity in our agency MBS strategy allows us to rotate from this asset class when other opportunities arise.

Speaker Change: Or to lean into the strategy when spreads move wider.

Speaker Change: Target assets are still current coupons spec pools due to the favorable carry profile, but we have also started to diversify our purchases to include some belly coupons as well.

The weighted average coupon of spec pools purchased was $5 three for this quarter across a mix of six five and four and a half coupon specs.

And BPL bridge, we have invested over $4 5 billion to date since the inception of our strategy in 2019.

We are focused on traditional credit profiles within the sector.

Cause of this we have been rewarded by improving credit fundamentals, along with preferential execution and bond investor interest in our rated securitization program.

Speaker Change: We experienced a steady increase in our portfolio size through our acquisition pipeline with delinquencies continuing to decline on both an absolute and percentage basis.

But just moving away so I think overall.

Particularly with respect to election.

Theres not a lot of.

Folks in this space that want to put long term duration risk on their balance sheet and then looking forward towards.

Looking at what are the economic plans of whoever is in office.

What that would mean for rates and.

Growth et cetera to then step into the market at all so the market is I think has been basically.

It's been curbed, a little bit as it relates to the timing.

Timing of.

Speaker Change: Of activity, we're not going to see a lot of activity in November and the space and then it generally December cyclically.

Low months, so I think you're going to see robust activity back into January and February given the slowdown last two months of this year.

Alright, Thanks, guys I appreciate it.

Speaker Change: Thank you.

As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced one moment. Please.