Who We Are:

Investment Strategy

Agency RMBS + MSR Advantage

Our paired construction of MSR with Agency RMBS is unique and designed to generate attractive risk-adjusted returns while reducing exposure to fluctuations in interest rates and mortgage spreads.

Agency RMBS

Agency RMBS are securities collateralized by fixed rate mortgage loans, adjustable-rate mortgage loans or hybrid mortgage loans, or derivatives thereof. Payments of principal and interest on Agency RMBS are guaranteed by the Government National Mortgage Association (or Ginnie Mae), the Federal National Mortgage Association (or Fannie Mae), or the Federal Home Loan Mortgage Corporation (or Freddie Mac).

  • Specified Pools are Agency RMBS collateralized by loans that have similar characteristics, such as loan balance, FICO score, coupon, and prepayment protection. Specified pool prepayment speeds are generally slower and more stable than generic RMBS pools. Our primary sources of financing are repurchase agreements.
  • To-be-announced forward contracts or TBAs are agreements for the purchase (long notional positions) or sale (short notional positions) of Agency RMBS. TBAs may be used as a means of deploying capital until targeted investments are available or to take advantage of temporary displacements, funding advantages or valuation differentials in the marketplace.


MSR entitle the servicer to receive compensation in return for performing servicing activities for the underlying mortgage loan. Our MSR business leverages our core competencies in prepayment and interest rate risk management and the MSR assets provide a hedge to our Agency RMBS, in both interest rate and mortgage spreads. We acquire MSR through established relationships with originators, brokers, and other sellers in both bulk packages and regular daily flow commitments. We are a GSE-approved servicer and only own conventional MSR. Although we own the MSR, we do not directly service the mortgage loans underlying the MSR but rather contract with appropriately licensed third party subservicers to perform substantially all servicing functions. MSR assets are financed through a combination of repurchase agreements, revolving credit facilities and collateralized securitization transactions.

Learn more about our MSR Program