Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) Q1 2022 Earnings Conference Call May 9, 2022 5:00 PM ET

Company Participants

Garrett Edson - Managing Director, ICR

Jay Lown - President & Chief Executive Officer

Julian Evans - Chief Investment Officer

Michael Hutchby - Chief Financial Officer

Ray Slater - MSR Portfolio Manager

Conference Call Participants

Mikhail Goberman - JMP Securities

Henry Coffey - Wedbush

Matthew Howlett - B. Riley

Operator

Greetings. Welcome to the Cherry Hill Mortgage Investment Corporation First Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host Garrett Edson, you may begin.

Garrett Edson

We'd like to thank you for joining us today for Cherry Hill Mortgage Investment Corporation's First Quarter 2022 Conference Call. In addition to this call, we have filed a press release that was distributed earlier this noon and posted to the Investor Relations section of our website at www.chmireit.com.

On today's call management's prepared remarks and answers to your questions may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ from those discussed today. Examples of forward-looking statements, include those related to interest income, financial guidance, IRRs, future expected cash flows, as well as prepayment and recapture rates, delinquencies and non-GAAP financial measures such as earnings available for distribution or EID, and comprehensive income.

Forward-looking statements represent management's current estimates and Cherry Hill assumes no obligation to update any forward-looking statements in the future. We encourage listeners to review the more detailed discussions related to these forward-looking statements contained in the company's filings with the SEC, and the definitions contained in the financial presentations available on the company's website.

Today's conference call is hosted by Jay Lown, President and CEO; Julian Evans, the Chief Investment Officer; and Michael Hutchby, the Chief Financial Officer.

Now, I will turn the call over to Jay.

Jay Lown

Thanks, Garrett, and welcome to today's call. First quarter was certainly eventful for both Cherry Hill and other agency-focused REITs, as markets endure the considerable widening of mortgage spreads, inflation hitting 40-year highs, a war in Eastern Europe and continued market concerns about supply chains not at full capacity.

As the Fed began to telegraph, its strategy to fight inflation, rates spiked meaningfully during the quarter and that has further progressed into May. The US 10-year treasury finished the quarter at 2.34%, 83 basis points above year-end. At the same time, economic data held the line for most part with unemployment remaining near historic lows, and close to we're at full employment levels.