IVR Stock Recent News

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We take a look at the action in preferreds and baby bonds through the second week of November and highlight some of the key themes we are watching. Preferred stocks had a strong week with a 2% total return, supported by a Treasury rally and narrowing credit spreads. Invesco Mortgage Capital is redeeming its floating-rate preferred IVR.PR.B, which will raise equity coverage.

In the closing of the recent trading day, Invesco Mortgage Capital (IVR) stood at $8.62, denoting a +1.17% change from the preceding trading day.

Invesco Mortgage common stock and preferred shares carry significant risk, with IVR-C being severely overpriced and offering low yield relative to alternatives. IVR-C's stripped yield is only 7.63%, and its annualized yield to call is about 8.2%, both insufficient for the high risk involved. The floating rate on IVR-C starts in 2027, and its floating spread is only 5.289%, making it less attractive compared to lower-risk options like AGNCN.

In the closing of the recent trading day, Invesco Mortgage Capital (IVR) stood at $9.01, denoting a +1.46% change from the preceding trading day.

I believe Invesco Mortgage Capital Inc. faces significant risks from rising prepayment rates and spread risk, which could devalue its MBS portfolio and impact returns. Lower liquidity at the liability level can occur if U.S. economic variables don't improve. Moreover, I anticipate higher credit risk in 2025, which might add to funding uncertainty and refinancing. Regression analysis illustrates the mREIT's potential in a stable market environment. However, I don't think a stable market outlook is warranted.

Invesco Mortgage Capital (IVR) closed at $9.11 in the latest trading session, marking a +0.05% move from the prior day.

Invesco Mortgage Capital (IVR) primarily invests in Agency RMBS and employs leverage to enhance yields, making it sensitive to interest rate fluctuations. IVR's dividend history shows significant cuts due to margin calls and liquidity issues, particularly during the COVID-19 pandemic. Despite recent GAAP losses, IVR's earnings available for distribution suggest a potential future dividend increase as unrealized losses diminish.

Invesco Mortgage Capital (IVR) closed at $8.77 in the latest trading session, marking a +0.92% move from the prior day.

Invesco Mortgage Capital Inc. (NYSE:IVR ) Q2 2024 Earnings Conference Call August 9, 2024 9:00 AM ET Company Participants John Anzalone - Chief Executive Officer Lee Phegley - Chief Financial Officer Brian Norris - Chief Investment Officer Greg Seals - Investor Relations Conference Call Participants Jason Weaver - JonesTrading Jason Stewart - Janney Montgomery Operator Good morning and thank you for standing by. Welcome to the Invesco Mortgage Capital second quarter 2024 earnings call.