The following is a summary of the Invesco Mortgage Capital Inc. (IVR) Q3 2024 Earnings Call Transcript:

Financial Performance:

• IVR reported a Q3 2024 book value per common share increase to $9.37, reflecting a 1.1% increase.

• The reported economic return for the quarter was 5.4%, combining capital appreciation and dividend distribution.

• Earnings available for distribution for common share decreased to $0.68 from $0.86, primarily due to a reduction in effective net interest income related to changes in the hedging portfolio.

• IVR announced the redemption of Series B preferred shares to optimize capital structure and reduce dividend obligations.

Business Progress:

• Agency Mortgages and CMBS formed the major components of a $5.9 billion investment portfolio, with plans to increase investments in Agency CMBS due to favorable market conditions and prepayment protection.

• IVR experienced a portfolio increase by about 12% quarter-over-quarter primarily in higher coupon Agency RMBS.

• The continued normalization of monetary policy and reduced interest rate volatility are expected to benefit Agency Mortgage investments.

Opportunities:

• As monetary policy eases, anticipated to be favorable for mortgage-backed securities, particularly Agency RMBS and CMBS.

• Potential benefits from a steeper yield curve and lower interest rate volatility, improving demand for Agency Mortgages from various financial institutions.

Risks:

• With U.S. elections causing uncertainty and varying expectations around monetary policy, there's a risk that mortgage valuations could be pressured if interest rate volatility increases or if there are shifts in economic policy post-election.

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