Loading...
•
Dec 31, 2024
Two Harbors Q4 2024 Earnings Report
Announced financial results for the quarter ended December 31, 2024, highlighting the benefits of the hedged MSR strategy which drove high-quality returns in a dynamic market.
Key Takeaways
Two Harbors Investment Corp. reported its Q4 2024 financial results, with a focus on its hedged MSR strategy. The company declared a fourth-quarter common stock dividend of $0.45 per share. The MSR portfolio had a 3-month CPR of 4.93%, a weighted average gross coupon rate of 3.46%, and a 60+ day delinquency rate of 0.90%.
Reported book value of $14.47 per common share and declared a fourth quarter common stock dividend of $0.45 per share.
Incurred Comprehensive Loss of $(1.6) million, or $(0.03) per weighted average basic common share.
Settled $2.5 billion in unpaid principal balance (UPB) of MSR through bulk and flow-sale acquisitions and recapture.
MSR portfolio had 3-month CPR of 4.93%, weighted average gross coupon rate of 3.46%, and 60+ day delinquency rate of 0.90%.
Forward Guidance
Mortgage spread volatility has significantly decreased, enhancing our portfolio’s return outlook. Mortgage rates are well above 6%, and prepayment rates are expected to remain slow in 2025, providing a strong positive tailwind for MSR. Combined with historically wide nominal current coupon spreads, we believe that our unique hedged MSR-centric strategy will continue to generate attractive levered returns in 2025 and beyond.
Positive Outlook
- Mortgage spread volatility has significantly decreased, enhancing our portfolio’s return outlook.
- Mortgage rates are well above 6%.
- Prepayment rates are expected to remain slow in 2025, providing a strong positive tailwind for MSR.
- Historically wide nominal current coupon spreads.
- Unique hedged MSR-centric strategy will continue to generate attractive levered returns in 2025 and beyond.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...