Great Ajax Corp. (AJX) Q3 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

Please stand by. We're about to begin. Good afternoon, ladies and gentlemen. Welcome to the Great HX Corporation Q3 2023 Financial Results Conference call. At this time, all participants are in a listen-only mode, and please be advised that this call is being recorded. Now at this time, I'll turn things over to your host, Mr. Larry Middleton, Chief Executive Officer. Mr. Middleton, please go ahead. Thank you. Thank you, everyone, for joining us for the Great HX Corp third quarter call. Before we get started, I want to just point out page number two, the safe harbor disclosure. Along with me on this call are Russell Schaub, our president, and Mary Doyle, our CFO. As I'm sure you've seen, there are several corporate and strategic developments in Q3 2023 and into Q4 2023, which we will discuss a bit later in this call. In Q3 2023, loan performance declined by a small amount, as did loan cash flow velocity from reinstatements on delinquent loans and from sales of homes. The slight cash collections decrease from home sales and reinstatements is primarily seasonality-based. Prepayments from borrowers refinancing their mortgages continued their slower pace, as you would expect, given current mortgage rates. The small rise in delinquency is primarily the result of softening economic conditions. The regular payment performance of our mortgage loans and mortgage loans in our joint venture structures from non-performing loans can extend duration and decrease yield. As a result, the small decline in monthly performance actually can increase yield going forward. At September 30, we had approximately 64 million in cash as well as significant amount of unencumbered securities. If we move to page three, the business overview, Our manager's data science guides the loan characteristic...