INVESCO MORTGAGE CAPITAL INC

Welcome to the Invesco Mortgage Capital Third Quarter 2026 Earnings Call. All participants will be in a listen-only mode until the question and answer session. At that time to ask a question, press the star followed by the one on your telephone. 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.

Thanks, operator, and to all of you joining us on Invesco Mortgage Capital's third quarter 2026 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 cap. Finally, Invesco Mortgage Capital is not responsible for and does not edit for guaranteeing the accuracy of our earnings. Telegram sends 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 IVR's CEO, Kevin Collins, for his comments.

Good morning and welcome to Besco Mortgage Capital's third quarter earnings call. I'll provide a few comments before turning the call over to Brian Norris, our CIO. He'll discuss our portfolio in more detail. Also joining us on the call this morning for Q&A is our president, David Lyle, and our CFO, Mark Gregson. Now turning to the market, during the third quarter, we operated in a very challenging environment. Economic growth remained resilient, but financial conditions tightened as investors priced in additional Fed rate hikes. Treasury yields repriced sharply higher across the curve, driven largely by expectations for tighter monetary policy, but also stronger growth and concerns around fiscal deficits and increased Treasury supply. So look, to put the magnitude of the rates move in perspective, This represented one of the most significant increases in treasury yields since the aggressive Fed tightening cycle of 2022. We saw two-year yields rise more than 70 bps, 10-year yields rise more than 80 bps, all during the quarter. Interest rate volatility also increased meaningfully during the quarter, especially in September. The move index ended the quarter at 110, up from 83 at the end of the second quarter. And moving to the Fed, the FOMC's 25 basis point rate increase at the September meeting demonstrated its commitment to price stability, and it helped keep longer-term inflation expectations fairly well anchored despite elevated energy prices. Two-year break-evens increased to 2.5% at quarter end from 2% at the end of the second quarter, and five-year break-evens increased more modestly to 2.4% from 2.3%. So collectively, these developments, they weighed on investor demand, and they contributed to and I'd say that's their state across the coupon stack. And I would call agency CVS spreads modestly wider. So against this backdrop, we generated an economic return of negative 11.6%. So that consisted of monthly dividends at 12 cents per share and a 16.1% decline in book value per share. Quarter to date, our book value is up roughly 4% and together with our and roughly 6%. At quarter end, our $8 billion investment portfolio consisted of 6.6 billion agency RMBS specified pulls, 0.7 billion agency TVA and 0.7 billion agency CMBS. I do wanna note that in September, we tactically reduced our agency CMBS allocation to what was eight and a half percent, excuse me, to eight and a half percent from 11%. And we redeployed proceeds into agency RMBS and Fred Weiding made it relatively more attractive. And regarding our leverage, our economic debt to equity ratio increased 8.3 terms from seven and a half terms. And we maintained a sizable balance of unrestricted cash and unencumbered investments exceeding 400 million. Now our EAD, it declined from 50 cents in the second quarter, 47 cents in the third quarter. So that largely reflected the impact of repositioning our swap portfolio. So as of quarter end, we hedged 99% of our borrowing costs with interest rate swaps and U.S. Treasury futures. Now regarding capital activities, we raised approximately $51 million through the ATM program during the quarter with the goal of increasing our scale, reducing expenses per share, and improving the liquidity profile of our common stock. Entering the fourth quarter, our outlook for agency RMBS and agency CMBS is constructive. despite continued uncertainty surrounding inflation, monetary policy, geopolitics, recent spread widening has certainly enhanced projected returns and the relative value of our target assets. And I also want to note that we believe the liquidity and government guarantee of agency MBS enhances its appeal as investors are increasingly focused on managing risks. Further, agency RMBS, we believe, is positioned to benefit from increased demand from the GSEs from banks and from money managers. Lower interest rate volatility and de-escalation of tensions in the Middle East could also provide additional support. So against this backdrop, we're really focused on maintaining prudent leverage, ample liquidity, and portfolio diversification. And we believe we're well positioned to navigate uncertainty and create long-term shareholder value. So now I'll turn the call over to Brian are going to go through our portfolio and our performance for the quarter in greater detail.