So when we look at this, this is for our attorneys. We are an internally managed REIT. We are positioned to benefit from with agency and non-agency residential mortgage-backed securities. One thing Rich said a moment ago, he used the term hybrid. It's not offensive, but we don't consider ourselves a hybrid REIT. We can consider ourselves if you will specialist in residential mortgage-backed securities, which consists of both agency and non-agency securities. But what our expertise is in residential mortgage-backed securities. So I would just like to make you understand that.
Kind of an experienced management team focused on residential MBS opportunities. I've been doing this since 1971 I guess. So that’s more than a couple of years. Non-agencies remain available at significant discounts. Craig will give you some data on that, but there is still wonderful opportunities non-agency arena very much so at or about the 8% level on a risk-adjusted return.
We continue to benefit from a steep yield curve, and our goal remains to generate double digit returns with appropriate levels of leverage and again you will see some slides in few moments in terms of leverage. I think you will find we're one of the lowest, if not the lowest, levered entity in our space.
We have had a 14.6% annual return compound down since January 2000, so for the last -- call it 10 years -- you can see for yourself. I'm kind of proud of this slide and the returns, and especially the fact we have been basically the lowest leverage of the company in our space.Here I’m just going to go one or two things and I’m going to turn to Bill, but one or two things I would like to just point out to. So, when you look at our debt to equity and if you go to the far right column you can see that the agencies are levered at about 6.7 times, non-agencies were about two times. Overall leverage about 3.5 times.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV