ARMOUR Residential REIT Inc (NYSE:ARR) Q2 2019 Earnings Conference Call - Final Transcript

Jul 25, 2019 • 08:00 am ET

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ARMOUR Residential REIT Inc (NYSE:ARR) Q2 2019 Earnings Conference Call - Final Transcript

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Q & A
Executive
Jeffrey J. Zimmer

become opportunities do present themselves, we don't think they're there today. So, don't anticipate our leverage going up. The only reason would go up a little bit is book value came up a little bit because that's your denominator effect, all right.

Analyst
Matthew Howlet

Right.

Executive
Jeffrey J. Zimmer

But we do not on purpose try to increase leverage right here. We do think that after the Fed meets and we see where they're trying to go cyclically that you're going to have mortgages loosen up and provide some opportunities. If you look at pay-ups, in our Board meeting of the day, we're looking at a lot of assets that would pay in 12 and 14, 30 seconds for are trading 60, 30 seconds over TBA's now, they're very rich. And there is no value there, but we're not going to sell them because we have investors, who appreciate the fact we maintain dividends every quarter.

So, that's the way we're looking at stuff, does on a levered basis, which is one of our favorite asset classes is really tight, don't a lot of revenues there. We think ARMs are a disaster right now. They're going to prepay very heavily and I can see the book value, one of the peers that owns a lot of ARMs the book value got went down quite a bit. That's because the markets re-appraising the value in that asset class. I would expect those values to go a little lower before there is something that we want to look at. But these things always change and often times change, when you just don't expect that we're going to keep some dry powder. As I said, we don't give good assets, we will buy back some more stock, but there will be an opportunity, we're just going to be patient, we're not going to force it.

Analyst
Matthew Howlet

Yeah, it makes a lot of sense. I appreciate the [Indecipherable]. Thanks for taking my questions.

Executive
Jeffrey J. Zimmer

Thank you.

Operator
Operator

And there are no further questions. I'll now turn the call back for any closing remarks.

Executive
Scott J. Ulm

Well, thank you very much everybody. Sorry, Jim. Please go ahead.

Executive
James Robert Mountain

No, I was just going to thank everybody for their participation this morning. We are around the office, if anybody has questions throughout the quarter. Always give us a call, we'll try and get back to you instantly or by the end of the day. And we always enjoy having an opportunity to have dialog with people that are following our stock. So, until next time, we'll see you then.

Operator
Operator

[Operator Closing Remarks]