Armour 住宅房產信托 (ARR) 2023 Q3 法說會逐字稿

Good morning, and welcome to ARMOUR Residential REIT's Third Quarter 2023 Earnings Conference Call.

早上好，歡迎參加 ARMOR 住宅房地產投資信託基金 2023 年第三季財報電話會議。

(Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Jim Mountain, Chief Financial Officer. Please go ahead.

（操作員說明）請注意，正在記錄此事件。我現在想將會議交給財務長吉姆·山 (Jim Mountain)。請繼續。

Thank you, Drew, and thank you to all of you for joining us this morning to discuss ARMOUR's third quarter 2023 results. Today, I'm joined by ARMOUR's co-CEOs, Scott Ulm and Jeff Zimmer; and our CIO, Mark Gruber.

謝謝 Drew，也謝謝大家今天早上加入我們討論 ARMOUR 的 2023 年第三季業績。今天，ARMOUR 的聯合執行長 Scott Ulm 和 Jeff Zimmer 也加入了我的行列。以及我們的資訊長馬克‧格魯伯 (Mark Gruber)。

By now, everyone has access to ARMOUR's earnings release, which can be found on our website, www.armourreit.com. This conference call includes forward-looking statements, which are intended to be subject to the safe harbor protection provided by the Private Securities Litigation Reform Act of 1995. The Risk Factors section of ARMOUR's periodic reports filed with the Securities and Exchange Commission, describes certain factors beyond ARMOUR's control that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements. Those periodic filings can be found on the SEC's website at www.sec.gov.

到目前為止，每個人都可以訪問 ARMOUR 的財報，該財報可以在我們的網站 www.armourreit.com 上找到。本次電話會議包含前瞻性陳述，這些陳述旨在遵守1995 年《私人證券訴訟改革法案》提供的安全港保護。ARMOUR 向美國證券交易委員會提交的定期報告中的「風險因素」部分描述了某些因素超出 ARMOUR 的控制範圍，可能導致實際結果與這些前瞻性聲明中表達或暗示的結果有重大差異。這些定期備案可以在 SEC 網站 www.sec.gov 上找到。

All of today's forward-looking statements are subject to change without notice. We disclaim any obligation to update them unless required by law. Also, today's discussion refers to certain non-GAAP measures. These measures are reconciled with comparable GAAP measures in our earnings release. An online replay of this conference call will be available on our website shortly and will continue for 1 year. On September 29, 2023, ARMOUR completed the previously announced one-for-five reverse stock split. All of the common share and per share amounts reflect the reverse stock split.

今天的所有前瞻性陳述如有更改，恕不另行通知。除非法律要求，否則我們不承擔更新它們的義務。此外，今天的討論也涉及某些非公認會計原則措施。這些指標與我們收益報告中的可比較公認會計原則指標進行了協調一致。本次電話會議的線上重播很快就會在我們的網站上提供，並將持續一年。 2023年9月29日，ARMOR完成了先前宣布的一換五反向股票分割。所有普通股和每股金額均反映了反向股票分割。

ARMOUR's Q3 GAAP net loss was $179.2 million. Net interest income was $3.6 million. Distributable earnings available to common stockholders was $50.2 million or $1.08 per common share. This non-GAAP measure is defined as net interest income plus TBA drop income, adjusted for the net coupon effective interest rate swaps and futures contracts, minus operating expenses, net of management fee waivers.

ARMOUR 第三季 GAAP 淨虧損為 1.792 億美元。淨利息收入為 360 萬美元。普通股股東可分配收益為 5,020 萬美元，即每股普通股 1.08 美元。這項非公認會計原則衡量標準被定義為淨利息收入加上TBA下降收入，根據淨息票實際利率掉期和期貨合約進行調整，減去營運費用，扣除管理費豁免。

Asset yield of 4.65% less cost of funds of 2.92% resulted in a net interest margin of 1.73% for the quarter. ARMOUR Capital Management is continuing to waive a portion of their management fees. They waived $1.65 million for Q3, which offsets operating expenses. The waiver will continue until further notice.

資產收益率為 4.65%，減去資金成本為 2.92%，導致本季淨利差為 1.73%。 ARMOR Capital Management 持續免除部分管理費。他們為第三季免除了 165 萬美元，這抵消了營運費用。豁免將繼續有效，直至另行通知。

ARMOUR paid monthly common stock dividends per share of $0.40 for a total of $1.20 per share for the quarter. We previously announced that we will maintain the $0.40 per share common monthly dividend rate for the remainder of 2023. We prioritize maintaining a common share dividend appropriate for the intermediate term rather than focusing on short-term market fluctuations. We expect to provide dividend guidance in late December, which will reflect our best understanding of current market conditions and outlooks at that time. Taken together with contractual dividends on preferred stock, ARMOUR has made cumulative distributions to stockholders approaching $2.2 billion over our history.

ARMOR 每月支付每股 0.40 美元的普通股股息，本季每股股息總額為 1.20 美元。我們先前宣布，我們將在 2023 年剩餘時間內維持每股 0.40 美元的普通股月股息率。我們優先考慮維持適合中期的普通股股息，而不是專注於短期市場波動。我們預計將在 12 月底提供股息指引，這將反映我們當時對當前市場狀況和前景的最佳理解。加上優先股的合約股息，ARMOR 在我們的歷史上已向股東累計分配了近 22 億美元。

During the third quarter, we issued 7,628,578 shares under our common stock ATM program. That raised $191.4 million in capital after fees and expenses. This represents an average net proceeds of $25.09 per share. We also repurchased fractional shares for $233,000 in connection with the reverse stock split. We have historically been active repurchasing ARMOUR common shares in the open market when trading price dislocation opportunities present themselves. ARMOUR's Board of Directors has increased the company's stock repurchase authority to 2.5 million common shares effective Monday, October 30, when our current blackout period ends.

第三季度，我們根據普通股 ATM 計劃發行了 7,628,578 股。扣除費用和開支後，籌集了 1.914 億美元的資本。這意味著每股平均淨收益為 25.09 美元。我們也以 233,000 美元的價格回購了與反向股票分割相關的部分股份。歷史上，當交易價格錯置機會出現時，我們一直在公開市場上積極回購 ARMOR 普通股。 ARMOUR 董事會已將公司股票回購權增加至 250 萬股普通股，自 10 月 30 日星期一生效，屆時我們目前的禁售期結束。

Quarter end book value was $21.73 per common share. The treasury and mortgage markets have continued to be highly volatile since then. As of Tuesday night, October 24, we estimated our book value to be approximately $17.95 per common share.

季末帳面價值為每股普通股 21.73 美元。此後，國債和抵押貸款市場持續高度波動。截至 10 月 24 日星期二晚上，我們估計我們的帳面價值約為每股普通股 17.95 美元。

Now let me turn the call over to Co-Chief Executive Officer, Scott Ulm. Scott?

現在讓我將電話轉給聯合執行長 Scott Ulm。史考特？

Thanks, Jim. At the end of the third quarter and beginning of the fourth quarter presented some of the most difficult conditions for mortgage-backed securities since the onset of COVID-19 in March of 2020. We've seen a significant decline in MBS prices primarily because of the nearly 125 basis point increase in 10-year treasury yields trough to peak since June 30. The widening in OAS caused mortgage assets to underperform similar duration treasuries even further.

謝謝，吉姆。第三季末和第四季初，抵押貸款支持證券出現了自 2020 年 3 月 COVID-19 爆發以來最困難的情況。我們看到 MBS 價格大幅下跌，主要是因為10 年期國債收益率上漲近125 個基點，觸及6 月30 日以來的最高點。OAS 的擴張導致抵押貸款資產的表現進一步遜於同類久期國債。

As a result, there have been broader investment -- investor redemptions in various bond funds, adding to the significant price pressures in the agency MBS market. We believe that much of this selling is driven by investors' existing overweight exposure to mortgage allocations relative to other investments.

結果，出現了更廣泛的投資——投資者贖回各種債券基金，增加了機構MBS市場的巨大價格壓力。我們認為，這種拋售很大程度上是由投資者相對於其他投資目前對抵押貸款配置的超配敞口所推動的。

Our current book value of $17.95 as of October 24, fully reflects this decline in agency mortgage prices. However, the market value decline of ARMOUR REIT common shares seems to have substantially overshot this book value movement. It's important to note against this backdrop that the market is offering once-in-a-decade opportunities to invest in Agency MBS with compelling returns and no appreciable credit risk. Despite the tough market conditions recently, we remain very constructive on the MPS market and its potential as we move towards the end of the Fed tightening cycle.

截至 10 月 24 日，我們目前的帳面價值為 17.95 美元，充分反映了機構抵押貸款價格的下降。然而，ARMOR REIT 普通股的市值跌幅似乎大大超過了帳面價值的跌幅。值得注意的是，在這種背景下，市場提供了十年一遇的投資機構 MBS 的機會，這些機會具有令人矚目的回報且沒有明顯的信用風險。儘管最近市場狀況嚴峻，但隨著聯準會緊縮週期的結束，我們對 MPS 市場及其潛力仍然非常有建設性。

We continue to assess share repurchases when we trade significantly below book value. We've increased our authorized repurchase authority effective next week. As always, we need to balance the value in historically cheap MBS against the accretion available from below book stock repurchases, as well as liquidity on balance sheet. In response to the increased market volatility, ARMOUR took measured steps towards a more conservative portfolio risk profile in order to (inaudible). These steps included a 25% reduction of our Agency CMBS DUS position. We've long valued how our DUS allocation bolsters both the convexity and the diversification of our Agency MBS portfolio. While we acknowledge DUS spreads are at (inaudible), we execute these trades due to DUS outperformance versus MBS pools over the last 2 months. We sold a lower coupon TBA position against our conventional seasoned loan balance pools to rotate into higher coupon Ginnie Mae II TBAs and pools.

當我們的交易價格顯著低於帳面價值時，我們將繼續評估股票回購。我們增加了授權回購權，下週生效。一如既往，我們需要平衡歷史上便宜的MBS的價值與低於帳面股票回購的增值以及資產負債表上的流動性。為了因應日益加劇的市場波動，ARMOR 採取了謹慎的措施，以實現更保守的投資組合風險狀況（聽不清楚）。這些措施包括將我們機構的 CMBS DUS 部位減少 25%。我們長期以來一直重視 DUS 分配如何增強我們機構 MBS 投資組合的凸性和多元化。雖然我們承認 DUS 利差處於（聽不清楚），但由於過去 2 個月 DUS 的表現優於 MBS 池，我們執行了這些交易。我們針對傳統的經驗豐富的貸款餘額池出售了較低息票的 TBA 頭寸，以輪換為較高息票的 Ginnie Mae II TBA 和池。

Improving the profile of the portfolio through the shorter cash flows of Ginnie Collateral. The explicit U.S. government guarantee gives this pools a 0% risk weighting on par with U.S. treasuries and makes them particularly attractive to banks and overseas investors. This trade brought our overall exposure to the Ginnie II sector to $1.5 billion or 16% of the total portfolio market value as of 10.4%. We also sold 4%, 4.5% and 5% coupon TBAs and pools. These are shielded from supply by the FDIC and organic new mortgage issuance. These belly coupons have outperformed on a relative basis. We plan to eventually reinvest these proceeds into more attractive higher coupons with higher yields and wider spread characteristics.

透過縮短吉利抵押品的現金流來改善投資組合的狀況。美國政府的明確擔保使該資金池的風險權重為 0%，與美國國債相當，這使得它們對銀行和海外投資者特別有吸引力。此交易使我們對吉尼 II 產業的整體曝險達到 15 億美元，佔投資組合總市值的 16%（截至 10.4%）。我們還出售了 4%、4.5% 和 5% 優惠券 TBA 和池。這些不受 FDIC 和有機新抵押貸款發行的供應影響。相對而言，這些腹部優惠券的表現優於大盤。我們計劃最終將這些收益再投資於更具吸引力的高票，具有更高的收益率和更廣泛的利差特徵。

We rebalanced nearly all of our cleared short duration swaps and treasury futures in the 10-year SOFR swap hedges. This shifted negative duration to longer tenors at a time when the 2/10 spread was inverted by more than negative 100 basis points. We also added $700 million in 10-year treasury short positions. This timely strategic shift enhanced our portfolio resilience to rise in treasury yields and MBS duration extension, while improving our liquidity.

我們重新平衡了 10 年期 SOFR 掉期對沖中幾乎所有清算的短期掉期和國債期貨。當 2/10 利差反轉超過負 100 個基點時，這將負久期轉變為更長的期限。我們也增加了 7 億美元的 10 年期公債空頭部位。這一及時的策略轉變增強了我們的投資組合對國債殖利率上升和MBS久期延長的抵禦能力，同時提高了我們的流動性。

All in, these trades allowed our portfolio to be more flexible in the face of a less predictable market environment. The portfolio's implied leverage and duration currently sit at 7.9x and 0.9 years, respectively. We expect selling pressures to begin to subside, and this risk profile should benefit from even a modest improvement in current market conditions.

總而言之，這些交易使我們的投資組合在面對難以預測的市場環境時更加靈活。該投資組合的隱含槓桿率和久期目前分別為 7.9 倍和 0.9 年。我們預計拋售壓力將開始消退，即使當前市場狀況略有改善，這種風險狀況也應該會受益。

Additionally, ARMOUR maintains healthy levels of available liquidity. Despite seasonal effects driving CPR is marginally higher, the overall mortgage refinancing activity remains at historically low prepayment loans. ARMOUR's average prepayment rate for all MBS assets in the third quarter was 5.3 CPR and a still very low 4.2 CPR in October. With our assets now priced on average 7 to 9 points below par, any prepayment activity in the portfolio is accretive to book value and is welcome to current prices.

此外，ARMOR 保持健康的可用流動性水準。儘管季節性影響導致 CPR 略有上升，但整體抵押貸款再融資活動仍處於歷史低點。第三季 ARMOUR 所有 MBS 資產的平均預付款率為 5.3 CPR，10 月仍然很低，為 4.2 CPR。由於我們的資產目前定價平均低於面值 7 至 9 點，投資組合中的任何預付款活動都會增加帳面價值，並且歡迎當前價格。

ARMOUR continues to fund just over 50% of its borrowings through our broker-dealer affiliate, BUCKLER Securities with REPO generally priced around SOFR plus 15 basis points. In late August, prior to most of the negative price action, ARMOUR gave guidance that we intended to maintain the same $0.40 per common share monthly dividend through the fourth quarter. The company followed through by declaring common dividends for October, November and December on October 3.

ARMOR 繼續透過我們的經紀自營商附屬公司 BUCKLER Securities 為其 50% 以上的借款提供資金，REPO 的定價通常約為 SOFR 加 15 個基點。 8 月下旬，在大多數負面價格行動之前，ARMOR 給了指導，我們打算在第四季度維持每股普通股 0.40 美元的每月股息。該公司隨後於 10 月 3 日宣布了 10 月、11 月和 12 月的普通股息。

The resulting dividend rate is extremely high for conditions today, a level beyond what can be earned with reasonable risk. We are committed to paying the previously announced Q4 dividends. We will also be carefully considering market conditions and outlook through the remainder of the fourth quarter. We expect to provide guidance on future dividends in late December, which will reflect the company's best assessment for the intermediate term at that time. That concludes my remarks.

就目前的情況而言，由此產生的股息率非常高，超出了合理風險所能賺取的水平。我們致力於支付先前宣布的第四季股息。我們也將仔細考慮第四季度剩餘時間內的市場狀況和前景。我們預計將在 12 月底對未來股利提供指導，這將反映公司當時對中期的最佳評估。我的發言到此結束。

Drew, do we have any questions from people on the line?

德魯，線路上的人有什麼問題嗎？

(Operator Instructions) The first question comes from Trevor Cranston with JMP Securities.

（操作員說明）第一個問題來自 JMP 證券公司的 Trevor Cranston。

Can you guys talk about how you're thinking about the interest rate market and specifically the risk of 10-year yields continuing to rise. And if we weren't to see that scenario, generally, how do you think we see MBS perform in that backdrop?

你們能否談談你們如何看待利率市場，特別是10年期殖利率持續上升的風險。如果我們沒有看到這種情況，那麼您認為 MBS 在這種背景下的表現如何？

So we have reduced our exposure to DV01, at a dollar value of a 1 basis point move in rates considerably from where it was 4 to 5 months ago. On the long end, as Scott said in his statement. Our exposure on the short end is greater than on the long end such that if you have a steepener in a bear market, meaning the 10-year rates go up, we are in a better position than we would have been on the first day of the third quarter.

因此，我們減少了 DV01 的風險敞口，美元價值較 4 至 5 個月前的利率大幅變動 1 個基點。從長遠來看，正如斯科特在聲明中所說。我們的短期風險敞口大於長期風險敞口，因此，如果熊市陡峭，意味著 10 年期利率上升，我們的處境會比熊市第一天更好。第三季。

The mortgages are in an interesting place here because we are seeing fund redemptions. It's something we haven't experienced or talked about, I mean, in a decade, the last time I talked about that was 2008, '09, '10. And on redemptions are without regard to the value of mortgage-backed securities, it's usually the large money management houses that run these funds, people redeem and they have to sell. So until fund redemptions stop, we imagine that mortgages are going to be fairly flat to even perhaps a little wider.

抵押貸款在這裡處於一個有趣的位置，因為我們看到基金贖回。這是我們沒有經歷過或談論過的事情，我的意思是，十年來，我最後一次談論它是在 2008 年、09 年、10 年。贖回時不考慮抵押貸款支持證券的價值，通常是大型資金管理公司經營這些基金，人們贖回，然後必須出售。因此，在基金贖回停止之前，我們認為抵押貸款將相當平穩，甚至可能擴大。

However, there will be a point that would fund reductions will slow down. And at that point, we don't know who the sellers would be of mortgages. And on the margin, there would likely be buyers. So our perspective on mortgages, while we thought at the end of the second quarter, they were exceedingly attractive. They are exceedingly more attractive today. We are a levered bond portfolio. We intend to continue to be a levered mortgage-backed agency security bond portfolio, but we are cognizant that the risks are out there. However, Trevor, we think they're less than perhaps what they were 4 to 6 weeks ago. I hope that addresses your question, and if not, come back with a follow-up.

然而，到了某個時候，資金削減的速度將會放緩。到那時，我們不知道抵押貸款的賣家是誰。在邊際上，可能會有買家。因此，我們對抵押貸款的看法，雖然我們在第二季末認為，它們非常有吸引力。如今，它們更具吸引力。我們是槓桿債券投資組合。我們打算繼續成為槓桿抵押貸款支持的機構安全債券投資組合，但我們認識到風險仍然存在。然而，特雷弗，我們認為他們的水平可能比 4 到 6 週前要低。我希望這能解決您的問題，如果沒有，請回來跟進。

No, yes, that was very helpful. And I guess one more. So as you guys are thinking about the appropriate dividend level heading into the end of the year, can you just comment sort of generally on where you see ROEs on new capital deployments today at the leverage levels you're comfortable with?

不，是的，這非常有幫助。我猜還有一個。因此，當您正在考慮年底前的適當股息水平時，您能否大致評論一下您今天在您滿意的槓桿水平上看到的新資本部署的股本回報率？

Trevor, it's Mark. So we see large returns in MBS somewhere in the mid-teens, and that's even before you add the hedges, which are going to be positive carry based on the inverted yield curve, which could add another 500 basis points of cases. So mid-teens where we see current opportunities.

特雷弗，我是馬克。因此，我們看到MBS的巨大回報在十幾歲左右，甚至在你添加對沖之前，這將是基於反向殖利率曲線的正利差，這可能會增加另外500個基點的案例。所以在十幾歲左右，我們看到了當前的機會。

And that would be on a leverage of approximately 8x and hedged to duration of 0.5 to 1 area. So that's deliverable, and frankly, if you wanted to raise your number from 8 to 9 on the leverage, it increases it by probably another 150 basis points. So there are opportunities out there. But as I said in my comments a minute ago, we continue to be cognizant of the downside. And Mark has his team leverage just under 8 right now, and (inaudible) just stick around that area for a while until we see clear skies.

這將採用大約 8 倍的槓桿，並對沖 0.5 至 1 區域的久期。所以這是可以實現的，坦白說，如果你想將槓桿率從 8 提高到 9，它可能會再增加 150 個基點。所以那裡有機會。但正如我在一分鐘前的評論中所說，我們仍然認識到不利的一面。馬克現在的團隊槓桿率略低於 8，並且（聽不清楚）在該區域停留一段時間，直到我們看到晴朗的天空。

The next question comes from Matthew Erdner with JonesTrading.

下一個問題來自 JonesTrading 的 Matthew Erdner。

You said into redemption stop mortgage spreads will kind of be flat to a little bit wider. Are you guys waiting for the money managers to kind of come back in for spreads to tighten? Or what other catalysts do you think could bring those spreads in?

您說過，在贖回停止後，抵押貸款利差將會持平甚至擴大。你們是否在等待基金經理回歸以收緊利差？或者您認為還有哪些催化劑可以帶來這些利差？

So eventually, mortgages are going to be so attractive versus other places where funds can be invested that you're going to see buyers come in. And this is why Mark and his team exposed -- increased their exposure, excuse me, to the Ginnie Mae sector to almost $1.5 billion right now. Because we know banks are going to be more interested in buying Ginnie Mae's. And we know that the convexity features of mortgages when they have way lower dollar prices. So I mean even 6.5 are well below par right now. So these are going to have interest to investors. You just have to wait out bear markets, and that's what we're doing. Mark, do you want to improve on that?

因此，最終，與其他可以投資資金的地方相比，抵押貸款將變得如此有吸引力，以至於你會看到買家進來。這就是為什麼馬克和他的團隊增加了他們的風險敞口，對不起，增加了吉尼的風險Mae 部門目前價值近 15 億美元。因為我們知道銀行會對購買吉利美 (Ginnie Mae) 更感興趣。我們知道，當美元價格低得多時，抵押貸款就會出現凸性特徵。所以我的意思是，現在即使是 6.5 也遠低於標準水準。因此，這些將會引起投資者的興趣。你只需要等待熊市結束，這就是我們正在做的事情。馬克，你想改進嗎？

Yes. When we see -- start to see banks and money measures come back in and banks are going to be the biggest player. I think that's going to drive spreads in. When loan growth and deposit growth go in better directions for security purchases, that's when we'll start to see things tighten.

是的。當我們開始看到銀行和貨幣措施回歸時，銀行將成為最大的參與者。我認為這將推高利差。當貸款成長和存款成長朝著更好的證券購買方向發展時，我們就會開始看到情況收緊。

The next question comes from Christopher Nolan with Ladenburg Thalmann.

下一個問題來自克里斯多福諾蘭和拉登堡塔爾曼。

Given on the capital management front, I know you have not issued stock quarter-to-date, but have you repurchased any shares?

在資本管理方面，我知道您本季至今尚未發行股票，但您回購過任何股票嗎？

At the point we wanted to repurchase, we were in a blackout period. So the answer is we've not repurchased any to date. Jim Mountain was very explicit in his comments, though, that blackout ends on Monday and the Board authority has increased our ability to repurchase shares. So we will be considering that, but take note of what Scott said as well, if you would, please. So there's 3 things you have to think about. Number one, we're always thinking about liquidity. And our liquidity is quite good right now. So that would enable us on the margin to repurchase shares. Then we balance the use of that capital versus where Mark and his team could invest money and they model it out, they decide what is the best use of capital.

當我們想要回購時，我們正處於封鎖期。所以答案是我們迄今為止還沒有回購任何產品。不過，吉姆·山在他的評論中非常明確，停電將於週一結束，董事會的權力增強了我們回購股票的能力。因此，我們將考慮這一點，但如果您願意的話，也請注意斯科特所說的話。所以你必須考慮三件事。第一，我們一直在考慮流動性。現在我們的流動性非常好。這樣我們就可以回購股票。然後我們平衡該資本的使用與馬克和他的團隊可以投資的地方，他們進行建模，決定什麼是資本的最佳用途。

Great. And then on leverage, where are you thinking about taking leverage forward? It looks fairly flat quarter-to-date relative to September 30. But given everything you have been discussing, it sounds like you want to be in a more defensive posture. Just trying to understand where you think leverage might go.

偉大的。然後在槓桿方面，您考慮在哪些方面進一步提高槓桿？與 9 月 30 日相比，本季迄今看起來相當平穩。但考慮到您一直在討論的所有內容，聽起來您希望採取更具防禦性的姿態。只是想了解您認為槓桿可能會走向何方。

So leverage for us, we have to balance the fact that we still see so much volatility going forward. And we don't want to get over our skis and have to force to sell assets because our leverage gets too high. So we're trying to balance this. And as Scott said in his remarks, we did several trades in Q3, as the things we're selling off and our leverage was increasing to decrease leverage and decrease risk. But we still want to have enough risk on when things turn, we are in a position that we could take advantage of that.

因此，對於我們來說，我們必須平衡這樣一個事實，即我們仍然看到未來存在如此大的波動性。我們不想克服我們的滑雪板，不得不被迫出售資產，因為我們的槓桿率太高了。所以我們正在努力平衡這一點。正如斯科特在演講中所說，我們在第三季度進行了多次交易，因為我們正在出售的東西和我們的槓桿不斷增加，以降低槓桿並降低風險。但當事情發生變化時，我們仍然希望承擔足夠的風險，我們處於可以利用這一點的位置。

So we want to have enough dry powder that we can withstand rates continuing to rise and spreads continue to widen, but enough leverage on that when things go the other way, we are able to take that advantage and see the increase in book value.

因此，我們希望擁有足夠的乾粉，能夠承受利率持續上升和利差持續擴大，但當事情朝相反方向發展時，我們能夠利用這一優勢並看到賬面價值的增加。

But as I noted earlier, go ahead. Please.

但正如我之前指出的，繼續吧。請。

No, no please go ahead, please.

不，不，請繼續。

As I noted earlier, we're at 7.9 right now. I doubt you would see us getting much over 8 in the current environment.

正如我之前指出的，我們現在的分數是 7.9。我懷疑你會看到我們在當前環境下獲得超過 8 分的成績。

Great. Final question. Reason for the decline in net interest income quarter-over-quarter given investment margins were relatively flat and your agency volumes went up since last quarter. Is that a timing issue?

偉大的。最後一個問題。鑑於投資利潤率相對持平，並且自上季度以來您的代理交易量有所增加，淨利息收入環比下降的原因是。這是時間問題嗎？

I think that is just a timing issue. I'd have to look at that a little harder. I don't know off the top of my head what the driver was there. But towards the end of the quarter, we did do a lot of selling, as we said. So we'll take a look.

我認為這只是一個時間問題。我必須更努力地看待這一點。我根本不知道司機在那裡是什麼。但正如我們所說，到本季末，我們確實進行了大量銷售。所以我們來看看。

(Operator Instructions) This concludes our question-and-answer session. I would like to turn the conference back over to Jim Mountain for any closing remarks.

（操作員說明）我們的問答環節到此結束。我想將會議轉回吉姆山發表閉幕詞。

Thank you for joining us this morning. We appreciate your interest in ARMOUR Residential REIT. And as always, if questions or concerns arise between now and the next time we do this in 3 months or so, please give us a call at the office. And in the meantime, stay safe.

感謝您今天早上加入我們。我們感謝您對 ARMOR 住宅房地產投資信託基金的興趣。像往常一樣，如果從現在到我們 3 個月左右下次這樣做之間出現問題或疑慮，請致電我們的辦公室。同時，請保持安全。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。