Mfa Financial, Inc. · NYSE:MFA
Mfa Financial — Investor Presentation (June 2009)
13 slides from Mfa Financial's investor presentation, Jun 2, 2009
Slide 1: June 2009
June 2009
Slide 2: Forward Looking Statements
Forward Looking Statements MEA ‘When used in this presentation or other written or oral communications, statements which are not historical in nature, including those containing words such as “believe,” “expect,” “anticipate.” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expr
Slide 3: MFA Overview
MA Overview MFA MFA is uniquely positioned to benefit from an existing portfolio of higher-yielding Agency MBS complimented by the acquisition of senior most tranches of non-Agency RMBS
Slide 4: Interest Rates Remain Near Historic Lows
Interest Rates Remain Near Historic Lows #itanerat, 1N8 Short-term inter While repo remains t available to MFA from are multiple counterparties, the exceptionally low financial industry continues to be impacted by global recession Agency MBS Fed Funds Target | 0 - 0.25% Agency MB Spreads have tighte
Slide 5: Funding Cost Continues to Decline Faster Than Asset Yield
Funding Cost Continues to Decline Faster Than Asset Yield While MFA Portfolio Yield Currently Remains Near 5.0%, the Cost of Funds is in a Downward Trend oe 6 6 Asset Yield Cost of Funds MFA Quarterly Data
Slide 6: Continuing to Deliver Solid Results
Continuing to Deliver Solid Results Recent Financial Results March 31, 2009 Book Value: April 30, 2009 Book Value: First Quarter 2009 ROE: First Quarter 2009 EPS: First Quarter 2009 Dividend Per Share:
Slide 7: 2009 Portfolio Update
2009 Portfolio Update* MPA «MFA has not purchased additional Agency MBS while the Federal Reserve implements its $1.25 trillion purchase program. + Through MFA’s wholly-owned MFR subsidiary, we are investing in senior most tranches of non-Agency residential MBS at deeply discounted prices to generat
Slide 8: Accelerating Non-Agency MBS Asset Acquisitions
Accelerating Non-Agency MBS Asset Acquisitions* PinANOIRE ING + Through MFR, we have acquired since December 2008 approximately $260 million market value of non-Agency MBS (representing 17% of MFA’s equity) at a deeply discounted weighted average purchase price of 50% of par with average credit enha
Slide 9: Loss Adjusted Returns For a Representative Non-Agency Security
Loss Adjusted Returns For a Representative Non-Agency Security 4AYAA/ \ Price = $60 + 2007 Vintage Jumbo 7/1s + 5.85% Coupon + 730 Approximate Average FICO + 10% Approximate Credit Enhancement a Stressed Case Optimistic Case Yield 9.6% 20.6% Voluntary Prepayment Rate (CPR) 5% 12% Default Rate (CDR)
Slide 10: MFA Strategy
MFA Strategy MFA Adding Senior Most Tranches of RMBS to high-yielding Agency MBS is a Compelling Strategy + Consistent with MFA’s focus on high quality assets, we are blending senior most tranche RMBS with higher-yielding (currently 5%) Agency securities, not junior credit enhancement securities or
Slide 11: MFA Strategy
MFA Strategy MFA Adding Senior Most Tranches of RMBS to high-yielding Agency MBS is a Compelling Strategy + Senior most tranches of RMBS offer mid-teen loss-adjusted returns. + Structured credit enhancement and highly discounted purchase price insulates investors from loss of invested principal. + W
Slide 12: Summary
Scimaty MFA Founded in 1997, MFA, an internally managed REIT with permanent equity capital, is uniquely positioned with the requisite expertise to benefit from existing investment in higher-yielding Agency MBS and acquisition of senior most tranches of non-Agency RMBS
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