35 unchanged sentences
Changes in spreads impact our book value and our liquidity and could cause us to sell assets and to change our investment strategy to maintain liquidity and preserve book value.
−Removed: Inflation, financial conditions, monetary policy initiatives, interest rates and interest rate volatility may have an impact on credit spreads.
+Added: Inflation, financial conditions, monetary policy initiatives, interest rates and interest rate volatility may have an impact on spreads.
Prepayment Risk
21 unchanged sentences
When these or similar market conditions are present, margin call risk is elevated and our operating results and financial condition may be materially impacted.
−Removed: The sensitivity analysis table presented below shows the estimated impact of an instantaneous parallel shift in the yield curve, up and down 50 and 100 basis points, on the market value of our interest rate-sensitive investments and net interest income, including net interest paid or received under interest rate swaps, as of September 30, 2024 and December 31, 2023, assuming a static portfolio and constant financing and credit spreads.
−Removed: When evaluating the impact of changes in interest rates,
−Removed: prepayment assumptions and principal reinvestment rates are adjusted based on our Manager’s expectations.
+Added: The sensitivity analysis table presented below shows the estimated impact of an instantaneous parallel shift in the yield curve, up and down 50 and 100 basis points, on the market value of our interest rate-sensitive investments and net interest income, including net interest paid or received under interest rate swaps, as of March 31, 2025 and December 31, 2024, assuming a static portfolio and constant financing and asset spreads.
+Added: When evaluating the impact of changes in interest rates, prepayment assumptions and principal reinvestment rates are adjusted based on our Manager’s expectations.
The analysis presented utilized assumptions, models and estimates of our Manager based on our Manager’s judgment and experience.
−Removed: As of September 30, 2024 As of December 31, 2023
+Added: As of March 31, 2025 As of December 31, 2024
Change in Interest Rates Percentage Change in Projected Net Interest Income Percentage Change in Projected Portfolio Value Percentage Change in Projected Net Interest Income Percentage Change in Projected Portfolio Value
4 unchanged sentences
Certain assumptions have been made in connection with the calculation of the information set forth in the foregoing interest rate sensitivity table and, as such, there can be no assurance that assumed events will occur or that other events will not occur that would affect the outcomes.
−Removed: The interest rate scenarios assume interest rates as of September 30, 2024 and December 31, 2023.
+Added: The interest rate scenarios assume interest rates as of March 31, 2025 and December 31,
Furthermore, while the analysis reflects the estimated impact of interest rate increases and decreases on a static portfolio, we actively manage the size and composition of our investment and swap portfolios, which can result in material changes to our interest rate risk profile.
11 unchanged sentences
and retroactive changes to building or similar codes.
−Removed: In addition, decreases in property values reduce the value of the collateral and the potential proceeds available to a borrower to repay our loans, which could also cause us to suffer losses.
−Removed: We retain the risk of potential credit losses on all of our residential and commercial mortgage investments.
+Added: In addition, decreases in property values reduce the value of the collateral and the potential proceeds available to a borrower to repay their loans, which could also cause us to suffer losses.
+Added: We retain the risk of potential credit losses on all of our residential mortgage investments.
We seek to manage this risk through our pre-acquisition due diligence process.
16 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.