Ready Capital Corporation (NYSE:RC) Q3 2022 Earnings Conference Call November 8, 2022 8:30 AM ET
Company Participants
Andrew Ahlborn - Chief Financial Officer
Tom Capasse - Chief Executive Officer
Adam Zausmer - Chief Credit Officer
Conference Call Participants
Stephen Laws - Raymond James
Steven DeLaney - JMP Securities
Christopher Nolan - Ladenburg Thalmann
Crispin Love - Piper Sandler
Jade Rahmani - KBW
Eric Hagen - BTIG
Operator
Greetings, and welcome to the Ready Capital Corporation Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation [Operator Instructions] As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Andrew Ahlborn, Chief Financial Officer. Please go ahead, sir.
Andrew Ahlborn
Thank you, operator, and good morning to those of you on the call. Some of our comments today will be forward-looking statements within the meaning of the federal securities laws. Such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Therefore, you should exercise caution in interpreting and relying on them. We refer you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition.
During the call, we will discuss our non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our third quarter 2022 earnings release and our supplemental information, which can be found in the Investors section of the Ready Capital website.
In addition to Tom and myself on today's call, we are also joined by Adam Zausmer, Ready Capital's, Chief Credit Officer.
I will now turn it over to Chief Executive Officer, Tom Capasse.
Tom Capasse
Thanks, Andrew. Good morning, everyone, and thank you for joining the call today. Before we dive into the numbers, a few observations on the macro backdrop, since late first quarter 2022, the historic velocity of the Fed's rate increases has led Ready Capital to pivot to a defensive posture in the event recession.
However, we believe Ready Capital's multifamily sector focused and diversified business model affords strength in our liquidity, credit, book value and earnings in a stressed economic environment. First, in terms of liquidity, as of 9/30, ReadyCap had $1 billion in unencumbered assets, including $200 million in cash and an additional $2.4 billion in available warehouse capacity. Further, recourse leverage of 1.6x is within our 2:1 target and critically short-term repo at $392 million is only 4% of total debt and is primarily secured by floating rate, short duration assets subject to low price volatility.