JPモルガン 米国MBSウィークリー

Research evidence excerpt

JPモルガン 米国MBSウィークリー

, and as a consequence, we expect new investments to be more balanced across TBAs

and specified pools."

Q: "How do you guys think about your ability to tap the equity markets at your current stock price?"

A (David L. Finkelstein): "Well, price to book assets need to be attractive and we need to be able to feed the businesses. So when we look at the stock

price we certainly think it warrants a premium given what we've created and the franchise and the fact that nobody can replicate what we can do in our

track record.

And as we look at raising capital, we want to be gentle with the market. The overall capital raise was a little over 2.5% of the outstanding, which relative to

some participants in the space is very low as a percentage of overall capital. So that's how we'll behave. We don't want to disrupt the stock price. We need

to make sure we can buy assets and we need to make sure we can generate positive returns. And to the extent that's available and we're gentle and we

respect the stock, we'll continue to do so."

DX "We've been running somewhere between 7.5 and 8.5 [turns of leverage]. I think that's a very comfortable range. Given the technical backdrop for

mortgages and the opportunity that persists and the spread outlook I just said discussed with both, I think we can carry that kind of leverage or potentially

even more leaning into any bounce of liquidity."

Q: "It looks like you've lengthened the book by adding more long-end exposure there. Is that an inherent curve view embedded in there or how should I

think about that?"

A (T.J. Connelly): "Those are paid fixed positions. And so we are paying fixed rate farther out the curve. So it is slightly more of a steepening bias relative

to the previous quarter."

A (Smriti L.