Invesco Mortgage Capital Inc. (NYSE:IVR) Q1 2023 Results Conference Call May 10, 2023 9:00 AM ET

Company Participants

Greg Seals - IR

John Anzalone - CEO

Brian Norris - CIO

Conference Call Participants

Douglas Harter - Credit Suisse

Trevor Cranston - JMP Securities

Matthew Erdner - JonesTrading

Operator

Welcome to Invesco Mortgage Capital Inc.'s First Quarter 2023 Investor Conference Call. All participants will be in a listen-only mode until the question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded.

Now, I would like to turn the call over to Greg Seals in Investor Relations. Mr. Seals, you may begin the call.

Greg Seals

Thanks, operator, and to all of you joining us on Invesco Mortgage Capital's quarterly earnings call. In addition to today's press release, we have provided a presentation that covers the topics we plan to address today. The press release and presentation are available on our website, invescomortgagecapital.com. This information can be found by going to the Investor Relations section of the website.

Our presentation today will include forward-looking statements and certain non-GAAP financial measures. Please review the disclosures on slide 2 of the presentation regarding these statements and measures as well as the appendix for the appropriate reconciliations to GAAP.

Finally, Invesco Mortgage Capital is not responsible for and does not edit nor guarantee the accuracy of our earnings teleconference transcripts provided by third parties. The only authorized webcasts are loaded on our website. Again, welcome, and thank you for joining us today.

I'll now turn the call over to John Anzalone. John?

John Anzalone

All right. Well, good morning and welcome to Invesco Mortgage Capital's first quarter earnings call. I'll give some brief comments before turning the call over to our Chief Investment Officer, Brian Norris, to discuss the current portfolio in more detail. Also joining us on the call to participate in the Q&A are our President, Kevin Collins; our CFO, Lee Phegley; and our COO, Dave Lyle.

As we entered 2023, agency mortgages continued the strong performance we saw during the fourth quarter of 2022 as industry volatility eased in anticipation of the end of the Fed's tightening cycle. However, favorable market conditions quickly deteriorated as several regional banks failed and concerns around the health of the banking system grew. These concerns impacted mortgage valuations as interest rate volatility spiked, and investors became concerned about the potential liquidation of mortgage assets seized by regulators.