21 November 2016
New York
Reporter: Drew Nicol

REIT to increase sec lending pool

Real estate investment trust Two Harbors Investments is currently in the market for a new portfolio of mortgage-backed securities (MBS) that is can open up to securities financing activities.

Two Harbors is looking earn additional revenue through non-recourse term borrowing facilities and equity financing under the legacy loan programme and term asset-backed securities lending facilities.

It will also participate in short-term repo transactions, known as agency repo MBS.

Despite posting Q3 results that were 14.2 percent down on Q3 2015, Two Harbors recently received a widespread vote of confidence from Credit Suisse Group, Deutsche Bank and J.P. Morgan, among others. They all designated the fund ‘buy’, while increasing their own stakes.

The fund earned $100.8 million in Q3 2016 and had a net margin of 15.46 percent and a return on equity of 8.48 percent.

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