Anworth Announces Company Updates
Anworth Mortgage Asset Corporation (NYSE: ANH) (“Anworth”) announced today the following updates with respect to its operations through the close of business on April 3, 2020:
- The global COVID-19 outbreak has significantly impacted the global economy, world financial markets, and the markets for both Agency mortgage-backed securities (“Agency MBS”) and non-Agency mortgage-backed securities (“Non-Agency MBS”). The Fed’s recent actions to support the Agency MBS market have been succeeding in lowering what had been an unprecedented level of volatility over the past several weeks. Non-Agency MBS prices have moved significantly lower recently, but have stabilized over this past week. We have taken significant steps through this market turmoil to improve liquidity and lower outstanding repurchase agreement borrowings through sales of Non-Agency MBS and Agency MBS.
- We estimate that our book value per common share at March 31, 2020 is down approximately 40% in the current quarter, to approximately $2.75 per share. Including our three series of preferred shares, the book value of our combined common and preferred stock has declined by approximately 32%.
- Anworth has reduced its Non-Agency repurchase agreement borrowings to approximately $270 million at March 31, 2020 through the sales of Non-Agency MBS, down from $428 million at December 31, 2019. Additional sales of Non-Agency MBS that we have made after March 31, 2020 are expected to further reduce our Non-Agency repurchase agreement borrowings to approximately $180 million. Agency MBS sales and principal payments have enabled the reduction of Agency MBS repurchase agreement borrowings to approximately $2.2 billion at March 31, 2020, enabling Anworth to build additional liquidity as well as reducing our leverage during this period of increased market volatility. Anworth has met all margin calls from its lenders and counterparties as of April 3, 2020.
- At March 31, 2020, Anworth’s cash and unpledged Agency MBS assets were in excess of $130 million.
- We expect to make an announcement this month regarding our common stock dividend relative to the first quarter of 2020. We do anticipate that the payment date for such a dividend will be later than April 29, 2020, which would have been its routine payment date.
About Anworth Mortgage Asset Corporation
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