Apr. 29 at 4:55 PM
$MITT During the first quarter, we experienced a familiar dynamic. In the beginning of the quarter, the company benefited from additional moderation of interest rate volatility, lower rates, and strong residential credit fundamentals, along with increased demand for risk across the entire non-agency capital stack from investors. These favorable conditions abruptly unwound in March following the escalation of the conflict in the Middle East, weighing on asset valuations broadly. Despite the challenging macro backdrop that put pressure on this book value for the first quarter, declining from
$10.48 to
$9.97, we maintained a disciplined leverage profile and remained focused on executing our core strategy of rotating capital into higher returning residential credit strategies and scaling profitability at Arc Home.
