Question · Q4 2025
Trevor J. Cranston asked for an update on the prospective return outlook following additional spread tightening in January and its implications for the near-term dividend level. He also questioned any material changes in coupon exposures in January and the strategy for the coupon stack given GSE buying announcements.
Answer
Nick Letica, CIO, noted that tighter spreads since December would marginally lower the return potential. William Dellal, CFO, stated it was too early in the quarter to comment on the dividend. Nick Letica added that overall mortgage exposure was lowered, but coupon exposures haven't materially changed, observing GSE buying focused on current coupons and varied impacts across the coupon stack.
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