31 unchanged sentences
In order to reduce this exposure, we use hedging instruments to reduce the gap in duration between our assets and liabilities.
−Removed: We calculate estimated effective duration (i.e., the price sensitivity to changes in risk-free interest rates) to measure the impact of changes in interest rates on our portfolio value.
−Removed: We estimate duration based on third-party models.
−Removed: Different models and methodologies can produce different effective duration estimates for the same assets.
−Removed: We allocate the net duration by asset type based on the interest rate sensitivity.
−Removed: The following chart details information about our duration gap as of December 31, 2024:
−Removed: Duration (1)(2) Years
−Removed: Agency RMBS (0.06)
−Removed: Securitized Residential Mortgage Loans 2.95
−Removed: Real Estate Securities 0.42
−Removed: Hedges on securitized investments (0.53)
−Removed: Securitized investments subtotal 2.84
−Removed: Residential Mortgage Loans (3) 0.61
−Removed: Hedges on Residential Mortgage Loans (0.57)
−Removed: Residential Mortgage Loans subtotal 0.04
−Removed: Commercial Loans (0.01)
−Removed: Senior Unsecured Notes (0.25)
−Removed: (1) Duration related to financing arrangements is netted within its respective line items.
−Removed: (2) Duration does not include our investment in AG Arc LLC.
−Removed: (3) Residential Investments are inclusive of forward purchase commitments to acquire Non-Agency Loans and Agency-Eligible Loans as of December 31, 2024.
+Added: Interest rate sensitivity
The following table quantifies the estimated percent change in GAAP equity, the fair value of our assets, and projected net interest income should interest rates go up or down instantaneously by 25, 50, and 75 basis points, assuming (i) the yield curves of the rate shocks will be parallel to each other and the current yield curve and (ii) all other market risk factors remain constant.
55 unchanged sentences
local real estate conditions (such as an oversupply of housing);
−Removed: natural disasters, the effects of climate change (including flooding, drought, wildfire, tornados and severe weather) and other natural events;
+Added: natural disasters, the effects of climate change (including flooding, drought, wildfire, tornadoes and severe weather) and other natural events;
construction quality, age and design;
31 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.