The Company has elected to reduce the monthly cash dividend in light of the rapid compression of the Company’s net interest margin that has occurred over the course of the fourth quarter. Additionally, recent comments from members of the Federal Open Market Committee indicate that the Federal Reserve may take actions to remove the substantial monetary policy accommodation that has been in place since the onset of the COVID-19 pandemic over the very near term.
The Company’s net interest
margin has also been impacted by the persistence of longer-term rates
remaining at or below levels observed earlier in 2021. As a result,
prepayment rates on the Company’s pass-through and interest-only
securities remain elevated.
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