Investors searching for income are definitely attracted to government guaranteed debt that yields more than U.S. treasuries. We believe IVR’s mortgage investments are well-positioned to benefit in this environment. We have seen a rallying credit that gained strength after the Greek elections and the Twist extension. There has been increasing rate commission on the part of investors that lower yields are here for a while and that they should consider transitioning away from treasuries, because the yield compression and credit assets is likely to continue. For that reason and the hopeful signs that have emerged in housing markets, we expect non-agency RMBS will perform well even as the economy continues to struggle and foreign markets remain under pressure.

Agency mortgages have continued to rally as well due to only modestly higher prepayments and we do expect this trend to continue. The conviction behind our strategy is strong. The money raised from our successful preferred offering was invested within days in high-quality bonds as we found some attractive relative value opportunities in credit.

At this point in time on the margin we prefer credit from a relative value standpoint. At the same time, we continue to believe agency mortgages will benefit from the muted prepayment environment and the positive supply demand dynamic. Most importantly we see this environment continuing to benefit IVR’s book value and our ability to maintain an attractive and competitive dividend.

On July 19, IVR successfully issued $135 million of $25 par preferred stock. I’m also happy to report we’ll be closing on an additional $5 million today from the Greenshoe. We were able to procure a very attractive 7.75% coupon on the shares. We’ve raised the capital because as I mentioned earlier we see a great opportunity to buy credit assets. The timing was good on the preferred issuance because that market has seen multiple billions in redemptions and the demand for paper is strong.

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