As the market for mortgage real estate investment trusts (mREITs) has lost some steam over the last couple of weeks, the investor day for Two Harbors Investment Corp (TWO) provided an ideal time to review the prospects for this company.
The company acquires, owns and manages a portfolio of Agency and non-Agency residential mortgage-backed securities and related investments. The investment approach focuses on security selection and the relative value of various sectors within the mortgage market.
Two Harbors currently has a total residential mortgage-backed securities (RMBS) portfolio of over $15B, providing for a significant hybrid mREIT that now has substantially reduced the expense ratio to 0.8%.
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