5 unchanged sentences
The COVID-19 pandemic and the related preventative measures are causing significant disruptions to the U.S.
−Removed: and global economies and has contributed to volatility and negative pressure in financial markets.
+Added: and global economies and have contributed to volatility and negative pressure in financial markets.
Many businesses, particularly smaller ones within the service-sector, have been forced to close, furlough and/or lay off employees.
As a result, U.S.
−Removed: unemployment claims have dramatically risen at unprecedented rates.
−Removed: Other economic activity, including retail sales and industrial production, have slowed as well.
−Removed: Current forecasts of economic activity suggest a meaningful economic contraction in the first half of 2020, with the potential for some economic recovery later in the year.
−Removed: However, the pace, timing and strength of any recovery are still unknown and difficult to predict.
+Added: unemployment claims remain at elevated levels.
+Added: Other economic activity, including retail sales and industrial production, while rebounding since the onset of the COVID-19 pandemic, also remain well below pre-COVID levels.
+Added: After a meaningful contraction in the second quarter of 2020, economic activity recovered sharply during the third quarter.
+Added: However, the pace, timing and strength of the economic recovery going forward is still unknown and difficult to predict as the COVID-19 pandemic continues.
Beginning in the first quarter of 2020, particularly in March, the COVID-19 pandemic began to adversely affect the mortgage REIT industry generally.
31 unchanged sentences
In these situations, we could be forced to sell assets at significantly depressed prices to meet such margin calls or increased haircuts and to maintain adequate liquidity, which could cause significant losses.
−Removed: As a result of the ongoing COVID-19 pandemic, during the six months ended June 30, 2020, we observed a mark-down of a portion of our mortgage assets by the counterparties to our financing arrangements, resulting in us having to post cash or securities to satisfy higher than historical levels of margin calls.
+Added: As a result of the ongoing COVID-19 pandemic, during the nine months ended September 30, 2020, we observed a mark-down of a portion of our mortgage assets by the counterparties to our financing arrangements, resulting in us having to post cash or securities to satisfy higher than historical levels of margin calls.
Significant margin calls had and could have in the future a material adverse effect on our results of operations, financial condition, business, liquidity and ability to make distributions to our stockholders, and caused and could cause in the future the value of our common stock to decline.
3 unchanged sentences
The declaration, amount and payment of any future dividends on shares of common stock will be at the sole discretion of our board of directors.
−Removed: Consistent with our intention to enhance our liquidity and strengthen our cash position to take advantage of future opportunities, in the second quarter of 2020, our board of directors reduced our quarterly cash dividend on our shares of common stock from prior quarters.
The payment of dividends may be more uncertain during severe market disruption in the mortgage, real estate or related sectors, such as those being experienced now as a result of the COVID-19 pandemic.
2 unchanged sentences
As a result, common stockholders may be required to pay income taxes with respect to such dividends in excess of cash received.
−Removed: stockholder sells the common stock that it receives as a dividend in order to pay this tax, the sale proceeds may be less than the
−Removed: amount included in income with respect to the dividend, depending on the market price of our common stock at the time of the sale.
+Added: stockholder sells the common stock that it receives as a dividend in order to pay this tax, the sale proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our common stock at the time of the sale.
Furthermore, with respect to certain non-U.S.
−Removed: stockholders, we or the applicable withholding agent may be required to withhold U.S.
+Added: stockholders, we or the applicable withholding agent may be required to
+Added: withhold U.S.
tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in common stock.
1 unchanged sentence
We have experienced, and may continue to experience, significant changes in our portfolio during times of severe market disruption in the mortgage, real estate or related sectors, such as those being experienced now as a result of the COVID-19 pandemic.
−Removed: Consistent with current market conditions related to the COVID-19 pandemic and our intention to enhance our liquidity and strengthen our cash position, during the six months ended June 30, 2020, we have reduced leverage and taken other steps to manage our portfolio through unprecedented market volatility and preserve long-term stockholder value, including completing various transactions to reposition our portfolio.
+Added: Consistent with current market conditions related to the COVID-19 pandemic and our intention to enhance our liquidity and strengthen our cash position, during the nine months ended September 30, 2020, we have reduced leverage and taken other steps to manage our portfolio through unprecedented market volatility and preserve long-term stockholder value, including completing various transactions to reposition our portfolio.
Stockholders may not agree with, nor are required to consent to, significant changes to our portfolio.
6 unchanged sentences
Actual prepayment results may be materially different than the assumptions we use.
−Removed: With respect to our hedging activities, we terminated all of our remaining interest rate swaps in March 2020 as we repositioned our portfolio in response to unprecedented market conditions associated with the COVID-19 pandemic and reduced our exposure to interest rate risk.
−Removed: However, we returned to utilizing hedges in July 2020.
+Added: We use interest rate swaps to manage our exposure to interest rate movements.
+Added: However, there is no guarantee these interest rate swaps will cover all risk.
Market disruptions caused by the COVID-19 pandemic have made it more difficult for us to determine the fair value of our investments.
7 unchanged sentences
We have experienced, and may experience in the future, a decline in the fair value of our investments as a result of the COVID-19 pandemic, which could materially and adversely affect us.
−Removed: During the six months ended June 30, 2020, w e experienced a significant amount of realized and unrealized losses on our assets.
+Added: During the nine months ended September 30, 2020 , w e experienced a significant amount of realized and unrealized losses on our assets.
A future decline in the fair value of our investments as a result of the COVID-19 pandemic may require us to recognize an impairment under U.S.
−Removed: GAAP if we were to determine that, with respect to any assets in unrealized loss positions, we do not
−Removed: have the ability and intent to hold such assets to maturity or for a period of time sufficient to allow for recovery to the original acquisition cost of such assets.
−Removed: If such a determination were to be made, we would recognize unrealized losses through earnings and write down the amortized cost of such assets to a new cost basis, based on the fair value of such assets on the date they are considered to be impaired.
+Added: GAAP if we were to determine that, with respect to any assets in unrealized loss positions, we do not have the ability and intent to hold such assets to maturity or for a period of time sufficient to allow for recovery to the original acquisition cost of such assets.
+Added: If such a determination were to be made, we would recognize unrealized losses through earnings and write down the amortized cost of such assets to a new cost basis, based on the fair value of such assets on the date
+Added: they are considered to be impaired.
Such impairment charges reflect non-cash losses at the time of recognition.
2 unchanged sentences
Measures intended to prevent the spread of COVID-19 could disrupt our operations.
−Removed: In response to the outbreak of COVID-19 and the federal and state mandates implemented to control its spread, a significant portion of our Manager’s employees are working remotely.
+Added: In response to the outbreak of COVID-19 and the federal and state mandates implemented to control its spread, the majority of our Manager’s employees are working remotely.
If our Manager’s employees are unable to work effectively as a result of the COVID-19 pandemic , including because of illness, quarantines, office closures, ineffective remote work arrangements or technology failures or limitations, our operations would be adversely impacted.
3 unchanged sentences
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
−Removed: During the three months ended June 30, 2020, we did not repurchase any shares of our common stock.
+Added: During the three months ended September 30, 2020, we did not repurchase any shares of our common stock.
DEFAULTS UPON SENIOR SECURITIES.
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.