Arlington Asset Investment Corp. (NYSE:AAIC) Q2 2022 Earnings Conference Call August 10, 2022 10:00 AM ET

Company Participants

Richard Konzmann - Chief Financial Officer

Rock Tonkel - President and Chief Executive Officer

Conference Call Participants

Doug Harter - Credit Suisse

Jason Stewart - JonesTrading

Trevor Cranston - JMP Securities

Operator

Good morning. I'd like to welcome everyone to the Arlington Asset Second Quarter 2022 Earnings Call. Please be aware that each of your lines is in a listen-only mode. [Operator Instructions]

I would now like to turn the conference over to Richard Konzmann. Mr. Konzmann, you may begin.

Richard Konzmann

Thank you very much, and good morning. This is Rich Konzmann, Chief Financial Officer of Arlington Asset. Before we begin this morning's call, I would like to remind everyone that statements concerning future, financial or business performance, market conditions, business strategies or expectations, and any other guidance on present or future periods constitute forward-looking statements that are subject to a number of factors, risks, and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances.

These forward-looking statements are based on management's beliefs, assumptions, and expectations, which are subject to change, risk and uncertainty as a result of possible events or factors. These and other material risks are described in the company's annual report on Form 10-K and other documents filed by the company with SEC from time to time, which are available from the company and from the SEC, and you should read and understand these risks when evaluating any forward-looking statements.

I would now like to turn the call over to Rock Tonkel for his remarks.

Rock Tonkel

Thank you, Rich. Good morning and welcome to the second quarter of 2022 earnings call for Arlington Asset. Also joining us on the call today is John Murray, our Portfolio Manager. Over the last two years plus, we set a course and have successfully repositioned Arlington into an investment platform built to produce attractive returns with low volatility. Through one of the most challenging quarters in the financial markets since the first quarter of 2020, a quarter in which we saw broad equity markets draw down over 16% and benchmark short-term interest rates rise over 100 basis points.

Arlington's diverse non-commodity investment channels of mortgage servicing rights, single family residential rental properties, and mortgage credit investments continued to produce positive results during the quarter, its fourth consecutive quarter of positive economic return. Arlington's differentiated investment strategy with low leverage and multiple sources of return is well suited for various market conditions and position to generate strong returns for shareholders over time.