Shares declined modestly by 1.1% following Q2 results, reflecting investor caution despite some improvements in earnings and portfolio size, as margin pressure and slower prepayment speeds suggested deceleration in key metrics.
- Earnings per share improved to $0.44 from a loss of $0.11 in Q1, though dividend was cut by 17% to $0.30.
- Book value increased modestly to $7.22 from $7.08 quarter-over-quarter.
- Average portfolio size grew slightly to $11.4 billion from approximately $11 billion.
- Economic leverage ratio decreased from 7.9:1 to 7.3:1.
- Prepayment speeds slowed significantly to 10.9% from 14.7%, indicating softer portfolio turnover.
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