(1) The dominating costs are thought to get prepayments having conditional prepayment rate (?CPR?) aim. 3 12 months step-upwards bonds is securitized monetary tools that are mostly backed by securitized re-starting and you may low-undertaking Funds. Many of these securities is organized such that the fresh new coupon increases as much as 3 hundred base issues during the 3 years out of issuance or eventually.

As of , lower than their exchange preparations, MFA got a beneficial adjusted mediocre repaired-spend interest rate of 1.87% and you may a drifting discover speed of 0.72% towards the notional balances totaling $dos.nine mil, with the average readiness away from thirty-five days.

A specific shelter are not subject to principal losings due to the fact much time while the borrowing from the bank enhancement is more than zero

The next dining table gifts MFA?s asset allocation by produce typically notice earning assets, average cost of financing and you may web interest rate bequeath to the some resource models.

(1) Comes with bucks and money counterparts and limited dollars off $318.six mil, securities obtained and bound once the equity, $404.9 billion regarding CRT bonds, other assets, obligations to return bonds obtained due to the fact guarantee or other debts. [Read more…]