Core earnings of $0.35 per share compares to $0.28 for Q3, $0.32 a year ago, and the most recent dividend of $0.30. End of year book value per share of $12.13 is down from $12.70 in Q3 and $15.85 a year ago. Today's close of $10.87 is a 10.4% discount to Dec. 31 book (which is almost certainly higher today than it was on Dec. 31).
Interest rate spread of 1.43% is up a whopping 36 basis points from Q3 and 49 bps from a year ago. Better yield on investments was driven by lower prepayment speeds: CPR of 7% vs. 13% in Q3, 20% a year ago. Funding costs of 2.33% rose 31 bps from Q3, rose 80 bps from a year ago.
Company continues to diversify away from fixed 30-year agency MBS paper, with commercial assets now accounting for 14% of stockholder equity. Agency MBS portfolio of $73.4B vs. $83B in Q3, $127B a year ago.
Leverage of 5.0:1 compares to 5.4:1 in Q3, 6.5:1 a year ago.
CC tomorrow at 10 ET
NLY +1.8% AH