Invesco Mortgage Capital Inc · NYSE:IVR
Invesco Mortgage Capital — Q2 2009 Earnings Presentation
11 slides from Invesco Mortgage Capital's earnings presentation, Aug 11, 2009
Slide 1: Invesco Mortgage Capital Inc. 2009 Second Quarter Investor Call
Invesco Mortgage Capital Inc. 2009 Second Quarter Investor Call August 11, 2009 Richard J. King President & Chief Executive Officer John M. Anzalone Chief Investment Officer Donald R. Ramon Chief Financial Officer Forward-Looking Statements This presentation, and comments made in the associated conf
Slide 2: Discussion Topics
Discussion Topics 1. Business Overview 2. Investment Portfolio 3. Questions and Answers
Slide 3: Business Overview
Business Overview Externally managed by Invesco Institutional (N.A.) Inc. Worldwide Fixed Income Invesco Real Estate WL Ross Completed IPO in July ’09 raising $201.2mn net of offering costs Acquired $829.4mn portfolio Obtained $630.6mn repo financing for Agency RMBS Obtained $40.1mn financing under
Slide 4: Investment Strategy
Investment Strategy RMBS and CMBS with attractive risk-adjusted yields Obtain government financing when available Maintain a short duration gap Diversify balance sheet risk for assets and liabilities
Slide 5: Discussion Topics
Discussion Topics 1. Business Overview 2. Investment Portfolio 3. Questions and Answers
Slide 6: Portfolio Composition
Portfolio Composition (1) (1) Portfolio information as of July 17, 2009
Slide 7: Agency RMBS
Agency RMBS Agency Hybrids Predominantly Interest-Only Pools 7 CPR in July ‘09 15 Year Fixed Rate Collateral Purchased in lieu of Agency Hybrids Seasoned and Loan Balance Paper 10 CPR in July ‘09 30 Year Fixed Rate Collateral Concentration in Higher Coupons (6% and 6.5%) Every Pool is Prepay Protect
Slide 8: Non-Agency RMBS
Non-Agency RMBS Credit Mix of Prime and Alt-A Collateral Focus on 2005 and 2006 Vintages Senior or Super-Senior Tranches No exposure to Option ARM Collateral Positive Yields in “Worst Case” Stress Scenario Prepayments Average Purchase Price was $61.35 Our Non-Agency RMBS Paid 18 CPR in July Expect P
Slide 9: CMBS
CMBS 6.04% Average Yield 3.91% Cost of Financing Financed through the Fed’s TALF Program 5 Year Term, Maturing in July 2014 2.13% Net Interest Margin Collateral Average Purchase Price was $95 All of our Purchases are from the 2005 Vintage CMBS positions are Match Funded
Slide 10: Expenses and Dividend Policy
Expenses and Dividend Policy G&A Expense Management fee 1.5% of equity Public company expense range 1.7% - 1.9% D&O Insurance, Auditing, Accounting, Tax, Legal, CFO, etc. Higher than IPO estimates due to reduced offering size Dividend Strategy Quarterly dividends beginning with Q3 ’09 Target 100% of
Slide 11: Questions and Answers
Questions and Answers 2009 Second Quarter Investor Call August 11, 2009
Invesco Mortgage Capital — Q2 2009 Earnings Presentation on 6ix