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    Matthew Howlett

    Senior Managing Director and Senior Equity Research Analyst at B. Riley Securities

    Matthew Howlett is a Senior Managing Director and Senior Equity Research Analyst at B. Riley Securities, specializing in the coverage of real estate investment trusts (REITs) and the broader financial sector. He covers companies including Safehold, Ladder Capital, AGNC Investment, Redwood Trust, PennyMac Mortgage Investment Trust, and a wide range of mortgage and diversified REITs, having issued over 300 ratings with a notable call on Redwood Trust returning 187%. Howlett joined B. Riley Securities after prior experience in equity research and has been with the firm since at least 2019, with his analyst rating data tracked since 2013; he is ranked #3,033 out of nearly 10,000 Wall Street analysts on TipRanks, holds a 47% success rate and an average return of 3.9%. He is registered with FINRA and is licensed for securities analysis, reflecting professional credentials and regulatory compliance.

    Matthew Howlett's questions to Carlyle Credit Income Fund (CCIF) leadership

    Matthew Howlett's questions to Carlyle Credit Income Fund (CCIF) leadership • Q4 2024

    Question

    Inquired about potential NII drag from recent capital raising, future capital raising strategies, the terms of the new convertible preferred stock, the outlook for CLO refinancing and resets, and sought clarification on the fund's tax situation, dividend policy, and the relationship between GAAP NII and core NII as a measure of earnings power.

    Answer

    The executives acknowledged a minor NII drag from capital raising but don't expect a material increase going forward. They plan to use all capital channels (ATM, direct offerings, convertibles) to grow the fund. They detailed the attractive terms of the convertible preferred, noting its accretive conversion feature. While CLO reset activity is high, CCIF's younger portfolio requires fewer resets than peers. They also explained the complex tax accounting, a one-time timing mismatch impacting 2024 taxable income, and stated that core NII is the best proxy for the fund's distribution requirements and true earnings power.

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    Matthew Howlett's questions to Carlyle Credit Income Fund (CCIF) leadership • Q3 2024

    Question

    Inquired about the comparative attractiveness of primary versus secondary CLO markets, the company's use of loan accumulation facilities, the extent of the refinancing and reset opportunities within the portfolio, the reason for an increase in the OC cushion, and the call date for the company's preferred stock.

    Answer

    Nishil Mehta stated that both primary and secondary markets offer opportunities, with primary becoming more attractive as debt costs fall. The company is using loan accumulation facilities and expects that activity to grow. The refi/reset opportunity is somewhat limited as the portfolio is relatively new. The strong OC cushion reflects stable credit fundamentals. The preferred stock has a two-year non-call period, making it callable around Q4 2025.

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    Matthew Howlett's questions to Carlyle Credit Income Fund (CCIF) leadership • Q3 2024

    Question

    Matthew Howlett of B. Riley Securities asked about the relative attractiveness of primary versus secondary CLO markets, the use of loan accumulation facilities, the portfolio's refi/reset potential, the reason for higher OC cushions, and the call date for the outstanding preferred stock.

    Answer

    Portfolio Manager Nishil Mehta stated that both primary and secondary markets present distinct opportunities, and CCIF will increase its use of loan accumulation facilities as it pursues more primary investments. He explained the refi/reset opportunity is somewhat limited by the portfolio's newer vintage but is being actively pursued. Mehta attributed strong OC cushions to stable credit fundamentals and noted the preferred stock becomes callable in Q4 2025, which the firm will evaluate.

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    Matthew Howlett's questions to Eagle Point Credit Co (ECC) leadership

    Matthew Howlett's questions to Eagle Point Credit Co (ECC) leadership • Q3 2024

    Question

    Matthew Howlett inquired about the forward trajectory for Net Investment Income (NII), the sustainability of high cash flows relative to GAAP income, and the rationale for discontinuing the variable supplemental dividend.

    Answer

    Executive Thomas Majewski detailed a multi-pronged strategy to increase NII by rotating from CLO debt to equity, issuing accretive preferred stock, and keeping cash fully deployed, while noting loan spread compression was a recent headwind. He affirmed that CLO cash flows are historically robust and less impacted by defaults than perceived. He explained the supplemental dividend was discontinued because tax deductions from recent CLO resets eliminated the anticipated spillover taxable income for the current year.

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    Matthew Howlett's questions to Cherry Hill Mortgage Investment (CHMI) leadership

    Matthew Howlett's questions to Cherry Hill Mortgage Investment (CHMI) leadership • Q3 2024

    Question

    Matthew Howlett inquired about the forward trajectory for Earnings Available for Distribution (EAD), current repo rates, the company's outlook on yield curve dynamics under a new administration, and the timing for the completion of the strategic internalization process.

    Answer

    Executive Jeffrey Lown confirmed that falling short-term rates should benefit EAD by reducing MSR financing costs, but declined to comment on internalization timing. Executives noted that repo rates were rolling around 4.80% post-Fed cut. Executive Julian Evans added that while a new administration's policies are expected to be stimulative, the extent is unknown, which will influence the Fed's ability to ease rates. Jeffrey Lown reiterated the company is positioned for a steepening yield curve.

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    Matthew Howlett's questions to Ready Capital (RC) leadership

    Matthew Howlett's questions to Ready Capital (RC) leadership • Q3 2024

    Question

    Matthew Howlett asked about the cadence of future cash generation from asset sales and the strategy for an upcoming debt maturity. He then pressed management on why the company was not more aggressively repurchasing stock, given the significant discount to book value and management's positive outlook, and also inquired about the potential for a spin-off of the SBA technology business.

    Answer

    Executive Andrew Ahlborn outlined ~$90 million in expected cash from MSR, platform, and asset sales over the next few quarters. CEO Thomas Capasse stated that while they are positioned to handle the 2025 maturity with cash, they are actively exploring all refinancing options. He agreed the stock is attractive for buybacks and expects activity 'in the upcoming months.' He also detailed the long-term strategy to potentially spin off the scaled SBA tech platform as a tax-free distribution to shareholders.

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    Matthew Howlett's questions to Ellington Financial (EFC) leadership

    Matthew Howlett's questions to Ellington Financial (EFC) leadership • Q3 2024

    Question

    Matthew Howlett followed up on the preferred stock redemption, asked if the company intends to take on more duration in its credit book, and inquired about the potential volume of securitizations that could be called next year. He also asked how investors should think about the embedded value of originator stakes like Longbridge, which are not marked-to-market on the balance sheet.

    Answer

    Co-Chief Investment Officer Mark Tecotzky noted that new preferred issuance is currently unattractive and debt is a better option to lower the cost of capital. CEO Laurence Penn stated that while the company prefers a shorter duration portfolio, it is not afraid of longer duration assets like those in the reverse mortgage space. Regarding Longbridge's value, Penn agreed that once it demonstrates stable earnings, it could command a valuation based on a multiple of earnings rather than book value. He emphasized that the immediate focus is on consistently covering the dividend, which was achieved in Q3.

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    Matthew Howlett's questions to Angel Oak Mortgage REIT (AOMR) leadership

    Matthew Howlett's questions to Angel Oak Mortgage REIT (AOMR) leadership • Q3 2024

    Question

    Matthew Howlett sought confirmation on the 15-20% return on the latest securitization and asked about the potential for earnings to exceed the dividend, the strategy for recycling capital from legacy deals, and the competitive landscape.

    Answer

    CFO Brandon Filson confirmed the 15-20% loss-adjusted leverage yield and acknowledged the potential for earnings to cover and exceed the dividend. He outlined a strategy to call lower-yielding securitizations from 2019 and 2022 in the coming year to redeploy capital into higher-return assets. CEO Sreeniwas Prabhu added that despite competition, Angel Oak's consistent market presence and service-driven model provide a competitive advantage beyond just pricing.

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    Matthew Howlett's questions to Angel Oak Mortgage REIT (AOMR) leadership • Q2 2024

    Question

    Matthew Howlett of B. Riley Securities inquired about projected ROEs on future securitizations, current mortgage rate adjustments, the potential scale of loan acquisitions, and the competitive landscape in the non-QM space.

    Answer

    CFO Brandon Filson projected long-term ROEs in the mid-to-high teens to low 20s, with a potential for higher returns on the next few securitizations. CEO Sreeniwas Prabhu noted that mortgage rates are currently flat due to market volatility but expects the industry to lower them soon. Filson confirmed the new capital could support approximately $1 billion in loan acquisitions. Prabhu described the competitive field as having been 'cleaned out,' positioning Angel Oak as a leader with limited competition, mainly from selective insurance companies.

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    Matthew Howlett's questions to Compass Diversified (CODI) leadership

    Matthew Howlett's questions to Compass Diversified (CODI) leadership • Q3 2024

    Question

    Matthew Howlett asked about the supply chain, specifically inquiring about the 'bullwhip' effect and when destocking trends might unwind and become a tailwind for portfolio companies. He also asked for the company's current thinking on its dividend policy.

    Answer

    Executive Patrick Maciariello responded that the portfolio is now largely at an equilibrium regarding supply chains, producing in a manner roughly equal to consumer demand without significant overbuilding or draining inventory. Executive Elias Sabo addressed the dividend, stating that the Board's current position is to continue paying the dividend and that no strategic change is currently being considered.

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    Matthew Howlett's questions to Compass Diversified (CODI) leadership • Q3 2024

    Question

    Matthew Howlett of Jefferies inquired about the supply chain dynamics across the portfolio, specifically asking about the 'bullwhip' effect and when destocking trends might unwind and become a tailwind. He also asked for the company's current thinking on its dividend policy and payments going forward.

    Answer

    Executive Patrick Maciariello responded that, portfolio-wide, the supply chain is now largely at equilibrium, with production roughly matching consumer demand, and he does not anticipate a significant tailwind from destocking. Executive Elias Sabo stated that the dividend policy is determined by the Board and that the company's current position is to continue paying a dividend every quarter, a practice maintained since going public, with no strategic change being considered.

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    Matthew Howlett's questions to Compass Diversified (CODI) leadership • Q2 2024

    Question

    Matthew Howlett asked for confirmation that the company would still be comfortable increasing leverage for a compelling acquisition, sought more detail on new product pipelines for 2025, and questioned the long-term growth outlook for The Honey Pot Company.

    Answer

    Executive Elias Sabo confirmed they remain comfortable taking leverage up by a half to three-quarters of a turn for the right asset, citing the strong, stable growth from Lugano, Boa, and PrimaLoft. While not providing specific product details, he emphasized that the 'innovation engine is stronger than ever' across the portfolio. Both Sabo and Patrick Maciariello affirmed their belief that The Honey Pot Company is a long-term double-digit grower, explaining that a temporary slowdown during the initial integration and 'CODI-ization' process is not unusual before growth re-accelerates.

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    Matthew Howlett's questions to Compass Diversified (CODI) leadership • Q2 2024

    Question

    Matthew Howlett sought confirmation on management's comfort with increasing leverage for a strategic acquisition, asked for details on new product pipelines at subsidiaries like The HoneyPot Company that could impact 2025, and questioned the long-term growth outlook for HoneyPot.

    Answer

    Executive Elias Sabo reaffirmed their comfort in taking leverage up by a half to three-quarters of a turn for the right asset, citing the strength of Boa, PrimaLoft, and Lugano. On innovation, he stated that all subsidiaries have robust product roadmaps and a daily focus on maintaining a competitive lead. Executive Patrick Maciariello expressed confidence that HoneyPot will be a double-digit grower long-term. Sabo added that a temporary slowdown during the initial integration period is normal before investments in infrastructure accelerate growth.

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    Matthew Howlett's questions to Compass Diversified (CODI) leadership • Q1 2024

    Question

    Asked if the guidance incorporates a full 'snapback' from inventory destocking, questioned if BOA's normalized growth could return to 20%+, and inquired about long-term strategic options for the highly valuable Lugano asset, such as selling a minority stake.

    Answer

    The guidance does not assume a large 'snapback' from inventory normalization, representing potential upside. While BOA has historically been a 20%+ grower and retains its strong attributes, they are not guiding to that specific rate. Strategic options for Lugano like selling a minority stake exist but add complexity, and for now, the focus is on leveraging its strong earnings growth to create financing opportunities for the whole business.

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    Matthew Howlett's questions to MEDALLION FINANCIAL (MFIN) leadership

    Matthew Howlett's questions to MEDALLION FINANCIAL (MFIN) leadership • Q3 2024

    Question

    Matthew Howlett from B. Riley Securities, Inc. questioned the company's forward-looking capital return strategy, specifically regarding the pace of dividend increases and share buybacks. He also asked for the quarter-end adjusted tangible book value, drilled down on net interest margin dynamics by comparing new CD costs to new loan yields, and inquired about the expansion strategy for fintech partnerships.

    Answer

    Executives Andrew Murstein and Anthony Cutrone emphasized a commitment to shareholder returns but declined to commit to a specific annual dividend growth rate, preferring to opportunistically balance dividends, buybacks, and portfolio growth. Mr. Cutrone reported the adjusted tangible book value was $10.17 per share. He noted that while new CD costs are slightly above the portfolio average, the margin is supported by new consumer loans being originated at high rates (16%+), which replace runoff from a portfolio with an average life of 36-42 months. Mr. Murstein added that the goal is to cautiously add one or two new fintech partners every 6 to 12 months.

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    Matthew Howlett's questions to BrightSpire Capital (BRSP) leadership

    Matthew Howlett's questions to BrightSpire Capital (BRSP) leadership • Q3 2024

    Question

    Matthew Howlett asked about the return on equity (ROE) BrightSpire can generate on new CLOs, considering the tightening in both loan and funding spreads. He also asked CEO Mike Mazzei to articulate BrightSpire's key differentiator compared to its peers, especially in light of its internalized structure and the stock's discount.

    Answer

    CEO Michael Mazzei stated that he expects funding costs on CLOs to tighten commensurately with, or even faster than, loan spreads, allowing the company to target mid-teens ROEs on new deals. As a key differentiator, Mazzei highlighted BrightSpire's vertically integrated asset management and its status as a rated special servicer on its own CLOs. He emphasized that this internal, high-touch approach from origination to resolution provides a significant advantage and has earned the company a strong brand reputation with both borrowers and investors.

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    Matthew Howlett's questions to Ladder Capital (LADR) leadership

    Matthew Howlett's questions to Ladder Capital (LADR) leadership • Q3 2024

    Question

    Matthew Howlett of B. Riley Financial inquired about current loan pricing and spreads for various property types, the economics of CLOs at these levels, Ladder's appetite for lower-rated securities, and CEO Brian Harris's views on whether CRE assets are fully marked down and the potential for industry consolidation.

    Answer

    Head of Originations Adam Siper stated spreads on high-quality new acquisitions are in the high 200s to low 300s. CEO Brian Harris confirmed that CLO economics work at these levels, yielding around a 15% ROE for the issuer, but noted that owning levered AAA securities can be more attractive. He confirmed Ladder would consider BBB securities but prefers AAAs for the better leverage and liquidity. On the market, Harris believes valuations are normalizing from inflated 2021-22 levels and doesn't see widespread trouble for banks outside of office exposure. He expressed interest in M&A but is wary of buying 'other people's headaches' from externally managed REITs.

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    Matthew Howlett's questions to PennyMac Mortgage Investment Trust (PMT) leadership

    Matthew Howlett's questions to PennyMac Mortgage Investment Trust (PMT) leadership • Q3 2024

    Question

    Matthew Howlett of B. Riley Securities asked if PMT would eventually return to higher MSR retention rates or prioritize capital for securitizations. He also questioned the long-term strategic goal for the credit vs. interest rate strategy mix and asked about remaining opportunities for cost savings from debt refinancing.

    Answer

    Executive Daniel Perotti confirmed that the current reduction in MSR retention is a deliberate move to free up capital for securitization opportunities. Executive David Spector stated that while delivering high returns is the priority, he would like to achieve a better balance between the credit and interest-rate sensitive segments over time. Regarding debt, Daniel Perotti noted that while significant refinancing has been completed, further opportunities are dependent on future market spread tightening.

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    Matthew Howlett's questions to Victory Capital Holdings (VCTR) leadership

    Matthew Howlett's questions to Victory Capital Holdings (VCTR) leadership • Q2 2024

    Question

    Matthew Howlett from B. Riley Financial inquired about the pro forma fixed income AUM percentage post-Amundi deal, the performance of the New Energy Capital franchise, and Victory's future M&A strategy, including balance sheet usage and target areas.

    Answer

    President & CFO Michael Policarpo confirmed the pro forma fixed income mix remains around 25% and noted New Energy Capital's positive quarter was due to a successful fundraise. CEO David Brown described the post-Amundi M&A environment as a "golden era of consolidation." He stated Victory will have a highly flexible balance sheet to pursue larger transactions, using various tools like debt and equity. The focus will be on acquiring great, culturally-aligned companies rather than targeting specific asset classes.

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    Matthew Howlett's questions to Burford Capital (BUR) leadership

    Matthew Howlett's questions to Burford Capital (BUR) leadership • Q2 2024

    Question

    Matthew Howlett of B. Riley Securities sought details on the drivers behind the exceptionally high 179% ROIC on realizations in Q2 and asked how investors should interpret this performance for future expectations.

    Answer

    Jonathan Molot (Chief Investment Officer) explained that the high returns were not due to a single outlier but represented a 'smattering' of positive case resolutions from across the portfolio, including trial wins and favorable settlements. He emphasized that this quarter's results reflect the ongoing, positive activity within the portfolio. Molot cautioned that returns can 'bounce around' quarterly depending on the mix of settlements versus adjudications but stated this quarter's performance did not surprise him based on the portfolio's potential.

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