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5/5/2022
Operator
Got it. And again, we're obviously very early in the tightening cycle, but as we think about, again, way, way down the road, how things will evolve, is the strategy that because you will have ultimately less liquidity on the MSR portfolio in a time when that will become a headwind, is the strategy just ultimately to use the TBA market and the MBS market to lever up and basically use that as your flex and keep the MSR portfolio relatively static inside.
Bill Collier
President & Chief Investment Officer, Two Harbors
Well, I mean, you're right. There's no question. RMBS and TBAs are more liquid than MSR, but MSRs are not completely illiquid. There are trades that take place and people do move around portfolios. And so when we think about our liquidity needs in short time periods, yes, it's a liquid part of our portfolio that we're primarily relying on. But when you think about longer time scales and how portfolios evolve through time, I think it's fair to also consider that there can be movements in the MSR portfolio if necessary or desired from a portfolio strategy perspective.
Operator
Great. Thank you, Bill. Thank you.
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