Anworth Mortgage Asset Corporation (NYSE:ANH) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 01:00 pm ET


Anworth Mortgage Asset Corporation (NYSE:ANH) Q4 2019 Earnings Conference Call - Final Transcript


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Before we begin the call I'd like to introduce Mr. John Hillman, Anworth's Director of Investor Relations to make a brief introductory statement. Please go ahead.

John T. Hillman

Thank you, Nick. The Statements made on this earnings call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended and we hereby claim the protection of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to any such forward-looking statements. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. You should not rely on our forward-looking statements because the matters they describe are subject to assumptions, known and unknown risks, uncertainties, and other unpredictable factors, many of which are beyond our control. Statements regarding the following subjects are forward looking by their nature, our business and investment strategy, market trends and risks, assumptions regarding interest rates and assumptions regarding prepayment rates on the mortgage loan securing our mortgage-backed securities. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties. Certain risks, uncertainties and factors, including those discussed under the heading Risk Factors in our Annual Report on Form 10-K and other reports we file from time of time with the Securities and Exchange Commission could cause our actual results to differ materially and adversely from those projected in any forward-looking statements that we make. All forward-looking statements speak only as of the date they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect us. Except as required by law, we do not intend to publicly update or revise any forward-looking statements whether as a result of new information or expectations, future or a change in events, conditions or circumstances, or otherwise. Thank you.

I would now like to introduce Joe McAdams, our Chief Executive Officer.

Joseph E. McAdams

Thanks, John. And thank you for joining our call today to discuss Anworth's fourth quarter 2019 results. With me today on the call are Bistra Pashamova, Senior Vice President and Portfolio Manager; Brett Roth, Senior Vice President and Portfolio Manager and Chuck Siegel, Anworth's CFO. The fourth quarter was generally positive for Anworth's portfolio. The Fed cut rates for the third time on the year in October and was largely successful at coming the repo markets following the spike in overnight rates seen in the third quarter. As interest rates moved higher, our Agency MBS holdings significantly outperformed their hedges and with the stock market and most at-risk assets in general performing well, our mortgage credit securities had similarly solid price performance.

Following the interest rate declines seen during the summer months, the follow through of higher refinancings and prepayments on our MBS portfolio was realized during the fourth quarter with the higher cost