Invesco Mortgage Capital anticipates that increased expectations for accelerated interest rate hikes and balance sheet reduction by the Federal Reserve will continue to weigh on Agency RMBS valuations in the near term. The outlook remains cautious, with a strategy to maintain relatively low leverage. The environment for Agency RMBS is expected to improve later in the year due to attractive spreads, slow prepayment rates, and a decline in net supply. The company continues to evaluate additional investment opportunities to complement its Agency RMBS strategy.