All written or oral forward-looking statements that we make or that are attributable to us are expressly qualified by this cautionary notice. We expressly disclaim any obligation to update the information in any public disclosure to any forward-looking statements later it turns out to be inaccurate.
Good morning, ladies and gentlemen. Welcome to Invesco Mortgage Capital Inc.’s Investor Conference Call, August 2, 2012. All participants will be on a listen-only mode until the question-and-answer session. (Operator Instructions) As a reminder, this call is being recorded.
I would now like to turn the call over to the speakers for today, Richard King, Chief Executive Officer; John Anzalone, Chief Investment Officer and Don Ramon, Chief Financial Officer. Mr. King, you may begin.Richard King – Chief Executive Officer Thanks, operator. Good morning everybody and welcome to Invesco Mortgage Capital’s second quarter earnings call. We’re pleased to announce earnings of $0.68 and a book value of $18.40. In our first quarter earnings call in May, we emphasized important areas of focus for us in the second quarter. And those were most importantly maintaining a stable book value and providing our shareholders with a competitive dividend. We accomplished each of these goals in the second quarter, primarily by maintaining low agency prepayments, continuing to add duration into the rate rally, and maintaining a high-quality credit portfolio. As a result, we also continued to strengthen the balance sheet. Despite the recent weakness in the U.S. economy, we are decisively upbeat about IVR’s prospects in coming quarters. The housing market is showing signs of life and that’s benefiting the non-agency market. Operation Twist was extended and we believe the Fed is moving ever closer to QE3 shall be needed. Continued central bank intervention and risk aversion will likely keep rates low and may send them even lower. As we have seen in an unusual investment environment like this, fixed income investors are starved for yields. It’s leading them to seek out high-quality cash flows backed by collateral, collateral that is de-linked from all the ongoing uncertainty regarding the European debt crisis.
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