INVESCO MORTGAGE CAPITAL INC

As a reminder, this call is being recorded. Now I would like to turn the call over to Greg Seals in Investor Relations. Mr. Seals, you may begin the call.

Thank you, Operator, and to all of you joining us on Invesco Mortgage Capital's quarterly earnings call. In addition to today's press release, we have provided a presentation that covers the topics we plan to address today. The press release and presentation are available on our website, InvescoMortgageCapital.com. This information can be found by going to the investor relations section of the website. Our presentation today will include forward-looking statements and certain non-GAAP financial measures. Please review the disclosures on slide two of the presentation regarding the statements and measures as well as the appendix for the appropriate reconciliations to GAAP. Finally, Invesco Mortgage Capital is not responsible for and does not edit or guarantee the accuracy of our earnings teleconference transcripts provided by third parties. The only authorized webcasts are located on our website. Again, welcome and thank you for joining us today. I'll now turn the call over to John Anzalone. John.

Good morning and welcome to Invesco Mortgage Capital's fourth quarter earnings call. I will give some brief comments before turning the call over to our chief investment officer, Brian Norris, to discuss the portfolio in more detail. Also joining us on the call are President Kevin Collins and our COO, Dave Lyle. As we enter the fourth quarter, Interest rate volatility accelerated as changes in investor expectations for the supply of U.S. Treasuries and the path of monetary policy led to substantial adjustments to both the level of interest rates and the shape of the yield curve. The heightened volatility drove notable underperformance in agency mortgages as investors reduced exposure to the asset class. During this period, we sought to maintain appropriate levels of cash and other assets, reducing risk by decreasing leverage as volatility increased. As market sentiment improved, bolstered by incoming data supporting a soft landing narrative and market expectations for a quicker pace of interest rate cuts by the Federal Reserve, we returned to our target range. Despite the volatility we experienced during the quarter, our book value for common share ended the quarter at $10, representing an increase of 0.7% from September 30th. When combined with our 40-cent common stock dividend, this produced an economic return of 4.7% for the quarter. Our debt-to-equity ratio ended the quarter at 5.7 times, down from 6.4 as of September 30th. As of the end of the quarter, nearly all of our $5.1 billion investment portfolio was invested in agency mortgages, and we maintained a sizable balance of unrestricted cash and unnumbered investments totaling $422 million. Earnings available for distribution for the period benefited from attractive interest income on our target assets, favorable funding, and low-cost pay fix swaps. For the quarter, EAD for common share was $0.95 compared to $1.51 for the third quarter, reflecting declines in interest income on investments and interest rate swaps in connection with our reduction in leverage and adjustments to our swap portfolio. Over the first six weeks of 2024, Mortgage valuations have been challenged with lower coupons underperforming higher coupons. As of February 16th, our book value for common share is down moderately, estimated to be between $9.50 and $9.88. As we enter 2024, both the FOMC and the federal funds futures market forecast the next policy move by the FOMC will be a rate cut, although they had differing expectations regarding the timing and quantity of these cuts. While evolving expectations around the timing of changes in monetary policy may bring challenges in the coming months, we view that a potential reduction in interest rate volatility, combined with compelling valuations and favorable funding conditions, will support an attractive investment environment for agency mortgages in 2024. I'll stop here. Brian will go through the portfolio.