As it's been for a while, the rates markets have been one directional. The funding call slow and asset values appreciating. It's a great environment for this business model, but as would be expected yields on MBS eventually adjust to the current, which we usually equate to some earnings margin compression in a low-rate situation.As you see, R&M was 149 basis points last quarter, down from 158 in the first quarter, which kind of reflects what the market has to give us nowadays, meaning we're close to current. Similar spread to where capital can be put the work today.
Hatteras Financial Corp Management Discusses Q2 2012 Results - Earnings Call Transcript
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