Two Harbors Investment Corp · NYSE:TWO
Two Harbors Investment — Investor Presentation (May 2010)
16 slides from Two Harbors Investment's investor presentation, May 21, 2010
Slide 1: Two Harbors Investment Corp. Presentation
Two Harbors Investment Corp. Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements his presentation may include “forward-looking statements” within the meaning of the safe harbor provisions of the Une Sines irate Series Ligon Reform Act f 1995. Atl renin iy differen expen, esas ton and, consequent, vets shoud not lyon these fore loo
Slide 3: Two Harbors Investment Summary
Two Harbors Investment Summary ). Increased book value 010. . y approach.
Slide 4: Overview of Pine River Capital Management
Overview of Pine River Capital Management mortgage strategies Registration (Hong Kong), Proprictay technology q = Average 19 years experience = 81 employees, 32 investment professionals = No senior management turn © Global footprint "= Historically low attrition
Slide 5: Executive Team with Deep Securities Experience
Executive Team with Deep Securities Experience Co-Chief Investment Offi RMBS Team Steven Kuhn jam Roth ‘Traders and Analysts ‘to serves as Parmer Head ofiaed Ako ees ad acme Pontos “eng eam ofthe des and Income Trading at Pine River “Manager for Pine River jsts from top Sect RBS ~ Gollan Sih Porto N
Slide 6: Style: Balanced Risk Approach
Style: Balanced Risk Approach Objective ‘Approach Result = Low interest rate exposure s lateses: Only Bonds uted offset fixed rate bonds = High allocation to adjustable rate bonds Interest Rate Risk *Low** Portfolio focused on repayment upside Agency bond: Interest-Only ots have **Balanced** = Low m
Slide 7: Investment Approach: Security Selection
Investment Approach: Security Selection Experienced, 9-member MBS investment team focused on cross-sector, relative-value approach [Real time risk analy Dyn: pital allocation investment comn eee et oversight sub-sectors of the market f ii i H Bond selection based on J ids and goa oT = 30 x iNonragen
Slide 8: Financing
| Financing Weighted = Laddered maturity schedule enhances liquidity Amount Average Repurchase Agreements ($M) ___Rate (%) profile Within 30 days s213 = Currently nine repo counterparties signed with additional relationships being negotiated 350-90 days $235 90-119 days - = Repo Manager with 20 year
Slide 9: Well-balanced and Attractive Portfolio
Well-balanced and Attractive Portfolio es Papas todkout/ ely sed =e he Monee ie HARA Option ARM Sabine fi © tiverese Rat Ri Duration gap of 02: . Ime bbonds benefit ftom higher interest, = 68, of ll asc ae adjustable rate Or yyment Risk ‘= 84% of Ageney bonds have prepayment protection ‘or are very
Slide 10: Portfolio Summary
Portfolio Summary Investment Portfolio ® Portfolio Summary $88 on Bonds st Fixed Rate S108 Mezzanine S19 Hybrid ARMS ‘Total portfolio: $520 WE Agency bonds Non-agency bonds $291 Porto Vek 51,2009 2010 ome ld 49% sore ee) ome 05%, 05% inert ate ea a 45% onto Metic a Duin ap 025yr Debtor Fy Operating
Slide 11: Achieving Returns With Lower Risk
Achieving —— Returns With Lower —— Superior asset selection an management generate market returns while taking on less risk ... With Lower Leverage ... ~~» Less Interest Rate Exposure .. And Less Prepayment Risk ®
Slide 12: TWO: Positioned to Deliver Value to Shareholders
TWO: Positioned to Deliver Value to Shareholders = Attractive returns with balanced risks
Slide 13: Appendix
Appendix VA
Slide 14: Executive Team
Executive Team 1 Seng Director. Me. Sing ao sve at Patcr—Head of Fudan Steet Pe Rv, Pro 1 ining Pe Rie ‘arin 2 fom ns halo Inc Craps EN & Asan eto MN ee 9 sls Pa bo. Fro 1991 306 Tom wa he porting of Men aor Pan Tarkio ned Tow nd ed naa of de ce seis Hc pied a of tire pore tno no Ln, hs a wont fae a
Slide 15: Executive Team Continued...
Executive Team Continued... ‘nl png Contos senaing ah rest nd from Drake University in 1997 Nin Group ew York ico, rman oan From 301 ness Development Andee was the Event Driven and Busnes Combination Companies SPAC) ‘he se Bie nell en cdanen i hartge ven an a dr ty mle eno hts sales pen at Cathy anc
Slide 16: Contact Information
Contact Information further information, please contact: he High Tanto. Relations Harbors Insinnt Cop 2
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