Two Harbors Investment Corp · NYSE:TWO
Two Harbors Investment — Investor Presentation (November 2010)
13 slides from Two Harbors Investment's investor presentation, Nov 19, 2010
Slide 1: Two Harbors Investment Corp. Investor Presentation
Two Harbors Investment Corp. Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results of Two Harbors Investment Corp, (“Two Harbors” or the “Compa
Slide 3: Two Harbors' Investment Thesis
Two Harbors’ Investment Thesis = We believe that the market opportunity is still considerable given the dislocations created by travails of Fannie Mae, Freddie Mac, et al. = Two Harbors has assembled a formidable investment team. = The mortgage market is highly idiosyncratic. Two Harbors has the ben
Slide 4: U.S. Mortgage Market — Large Size and Opportunity
U.S. Mortgage Market — Large Size and Opportunity = The US. residential mortgage market is the second largest investable U.S. Market Value by Asset Class 90.0 4.0 $8.0 $12.0 $16.0 U.S. Equities 15.9 Highly analyzed asset class Residential mortgage market is a Residential Mortgages 0-7 large and dist
Slide 5: Changed Landscape for Mortgage Investors
Changed Landscape for Mortgage Investors = Capital provider trends post-2008 — More opportunity for today’s market participants — much less crowded investment space today. ~ Fannie Mae and Freddie Mac are pursuing public policy initiatives and managing their loan portfolios. — Wall street proprieta:
Slide 6: Two Harbors Team with Deep Securities Experience
Two Harbors Team with Deep Secutities Experience Investment Team ( Co-Chief Investment Officers |) ( 15-member RMBS Team _ } Steven Kuhn William Roth ‘Traders and Analysts Also serves as Partner - Head of Fixed Also serves as Fixed Income Portfolio. ‘Trading team of four traders and Income Teading o
Slide 7: Investment Approach
Investment Approach Investment Strategy Investment Portfolio Mezzanine = Captures Benefits of Hybrid Modek Holistic view - of the market is taken by evaluating opportunities vat across the Agency and non-Agency RMBS universe. ®= Opportunistic: We deploy a fluid capital allocation non gl @. cana mode
Slide 8: Importance of Security Selection
Importance of Security Selection Q3-2010 Agency Book Post. 2006 2002-2005 11% 24% Prepayenent protected 2% Pre 2002 16% Low loan balances 22% Q3-2010 Non-Ageney Book Sub-Pime 32% Prime 4 yx Ala 3% Option ARM Portfolio Composition Focus on low and stable prepayments, Pools with seasoning, prepayment
Slide 9: Operating Performance
Operating Performance = Hybrid model provides opportunity for book value 3.200 Book Value Change”? growth, = Increased book value 6.2% on a sequential quarter basis compared to industry average of 0.4%, — Both Agency and non-Agency portfolios aon contributed to increased book value. 120 has = Sector
Slide 10: Attractive Returns With Lower Risk
Attractive Returns With Lower Risk Superior asset selection and risk management drive returns while taking on less risk. Attractive & Comparable Dividend Yield “... ... With Lower Leverage ®)... 60x Se Tie 1556 “ . = 7 3.2010 7 3.2010 3.2010 ti Hi poet Less Interest Rate Exposure ®... And Less Prepa
Slide 11: Contact Information
Contact Information “or further information, please contact: Anh Hignh Investor Relations Too Harbor esiment Cop 212.364.3221
Slide 12: Appendix
Appendix
Slide 13: Overview of Pine River Capital Management
Overview of Pine River Capital Management Global multi-strategy asset management firm providing comprehensive portfolio management, transparency and liquidity to institutional and high net worth investors. © Founded June 2002 with offices in New York, London, Beijing, Hong Kong, San Francisco and Mi
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