Two Harbors Investment Corp · NYSE:TWO
Two Harbors Investment — Investor Presentation (March 2011)
13 slides from Two Harbors Investment's investor presentation, Mar 21, 2011
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 “Compan
Slide 3: Two Harbors' Investment Thesis
Two Harbors’ Investment Thesis a We believe that the market opportunity is still attractive given the dislocations created by travails of Fannie Mae, Freddie Mac, et al. The hybrid REIT model allows for fluid asset allocation amongst sectors to optimize shareholder value. m The team takes a sophisti
Slide 4: U.S. Mortgage Market — Large Size and Opportunity
U.S. Mortgage Market — Large Size and Opportunity = The U.S. residential mortgage market is the second largest investable asset class. U.S. Market Value by Asset Class ($in Trillions) $0.0 $4.0 $8.0 $12.0 $16.0 U.S. Equities 15.9 Residential Mortgages 10. ‘Treasury Securities 83 Comporate Debt 7.0 H
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. — FannieMae and Freddie Macare pursuing public policy initiatives and managing theirloan portfolios — Wall Street proprietary tr
Slide 6: Two Harbors Team with Deep Securities Experience
Two Harbors Team with Deep Securities Experience Investment Team ( Co-Chief Investment Officers | | 19-memberRMBS Team | Steven Kuhn William Roth Traders and Analysts ~ Also serves as Partner-Head of Fixed — Also servesas Fixed Income Portfolio — ‘Trading team of five traders and Income Trading of P
Slide 7: Investment Approach
Investment Approach p_TnvestmentStrategy | = Captures Benefits of Hybrid Model: Holistic view of the market is taken by evaluating opportunities across the Agency and non-Agency RMBS universe = Opportunistic: We deploy a fluid capital allocation model in the residential mortgage markets = Balanced P
Slide 8: Importance of Security Selection
Importance of Security Selection Portfolio Com position Q4-2010 Agency Book Post-2006 Paime a ‘Sob Paine Alea 39% 19% |) { © se mudd ons em of Deseo, 20 Focus on low and stable prepayments Pools with seasoning, prepayment protection, and low loan balances provide for sustainable yields. Stable cash
Slide 9: Operating Performance
Operating Performance Q4-2010 Book Value Change Q42010 Book Value Change ® = Hybrid model provides opportunity for bookvalue 2% growth. 6a 7 35% = Increased book value 2.2% on a sequential quarter toy 124 24% 22% basis compared to industry average of -1.8%. ook — Increased book value 8.5% during 2H-
Slide 10: Attractive Returns With Lower Risk
Attractive Returns With Lower Risk Superior asset selection and risk management drive returns while taking on less tisk. Attractive & Comparable Dividend Yield... ... With Lower Leverage @... 20.0% 13% 14.3% o 15.0% 2 60x 100% 40x 50% 20x 4.2010 4.2010 gs.2010 42010 gs.2010 4.2010 10 PeetMfedian TWO
Slide 11: Contact Information
Contact Information For further information, please contact: Anh Huynh Investor Relations Two Harbors Investment Corp. 212, 364,3221 Ain
Slide 12: Appendix
VA 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. m Founded June 2002 with offices in New York, London, Beijing, Hong Kong, San Francisco and Mi
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