Capstead Mortgage Corp. (NYSE:CMO) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 10:00 am ET

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Capstead Mortgage Corp. (NYSE:CMO) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Executive
Robert R. Spears

the Quickens, the Freedoms, etc. And so really, the line of demarcation is kind of like, if you go back -- the loans originated more than six or seven years ago, it's primarily bank servicers. The newer issue is primarily nonbank servicers.

Analyst
Eric Hagen

That's really interesting color. One of your peers...

Executive
Robert R. Spears

And if you look at our portfolio, really, we got about 2% in agencies that are bank serviced, if you will, that are not current reset classification and the seasoned. And then another 8% or so, that's longer-reset, newer issue Ginnies. So it's fairly modest component of our portfolio these days.

Analyst
Eric Hagen

That's really interesting. That's interesting color. Hey, one of your peers was just talking about the term premium for repo having flattened considerably over the last few months. Is the idea to keep rolling 30-day repo? Or could you put on some funding further out the curve?

Executive
Robert R. Spears

You're almost like -- that's exactly correct. I mean 30-day repo is pretty much the same as 90-day repo with most of our lenders. And so we are -- and it depends upon the lender and what we're used to with their behavior and so forth. So we are doing more 90-day repo than we had in the past. We haven't really extended beyond that. But if it becomes more favorable, we wouldn't have a problem going out beyond that 90-days. At this point, it's been primarily 90 days, but if we saw an arb to take it out further, we definitely would.

Analyst
Eric Hagen

Interesting. Thanks again.

Executive
Robert R. Spears

Thank you.

Operator
Operator

[Operator Instructions] Our next question is from Hal Granger at Great Quarter Research.

Analyst
Hal Granger

Thank you for taking my question. Congratulations on a strong increase in your book value of 11.9% during the quarter to $6.79. Can you give us a sense of where your book value is now?

Executive
Phillip A. Reinsch

It's fairly flat to quarter end at this juncture.

Analyst
Hal Granger

Okay, thank you.

Operator
Operator

This concludes our question-and-answer session. I would like to turn the conference back over to management for closing remarks.

Executive
Lindsey Crabbe

Thanks again for joining us today. If you have further questions, please give us a call. We look forward to speaking with you next quarter.

Operator
Operator

[Operator Closing Remarks]