In mid-July, we completed a public offering raising approximately $592 million in net proceeds. We plan to use these proceeds primarily to purchase Agency bonds, but we will also purchase non-Agency securities when we find them at attractive prices, as well as acquiring single-family residential properties.

In addition, during the second quarter, we commenced an at-the-aftermarket offering program more commonly referred to as an ATM and sold nearly $78 million worth of additional common stock during the quarter.

Although we are quite early in the quarter, non-Agency prices rallied smartly in July, causing Two Harbors book value to rise noticeably since June 30. As a result of this in a flatter yield curve, we believe that yield in net interest spreads on Agency and non-Agency RMBS that are currently available for investment are generally lower than we have historically realized in our portfolio. That said, we believe the opportunity to produce attractive returns for stockholders still exist.

Please turn to Slide 4. During last quarter's call, I highlighted some insights on the key macroeconomic factors that would impact our business in the mortgage and housing sectors, including home prices, unemployment and interest rates. This quarter, I'd like to provide an update based upon the changing macroeconomic landscape in the light of recent economic status, including a weakening economic recovery, concerns around the fiscal cliff created by potential tax increases and spending cuts at the end of 2012 and continued concerns about Europe as global markets deteriorated in the second quarter.

The European situation is unsettled, and it's not clear that the Congress of nations with disparate fiscal policies and a common monetary policy is viable. Dissolution of the euro or EU represents a significant risk to global markets.

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