Profile: Two Harbors Investment Corp (TWO.N)
20 May 2019
Two Harbors Investment Corp., incorporated on May 21, 2009, is a real estate investment trust. The Company is focused on investing in, financing and managing residential mortgage-backed securities (RMBS), mortgage servicing rights (MSR), commercial real estate and other financial assets (collectively known as target assets). Its investment objective is to provide attractive risk-adjusted total return to its stockholders over the long-term, primarily through dividends and secondarily through capital appreciation. The Company focuses on managing various associated risks, including interest rate, prepayment, credit, mortgage spread and financing risk. The Company finances its RMBS and commercial real estate assets through short- and long-term borrowings structured as repurchase agreements and advances from the Federal Home Loan Bank of Des Moines, or the FHLB. It also finances its MSR through revolving credit facilities.
The Company's rates strategy includes Agency RMBS, MSR and related hedging transactions. Agency RMBS is collateralized by fixed rate mortgage loans, adjustable-rate mortgage (ARM) loans or hybrid mortgage loans or derivatives, including mortgage pass-through certificates, collateralized mortgage obligations, the Federal Home Loan Mortgage Corporation (Freddie Mac) gold certificates, the Federal National Mortgage Association (Fannie Mae) certificates, the Government National Mortgage Association (Ginnie Mae) certificates, to-be-announced forward contracts (TBAs), and interest-only and inverse interest-only securities. Its credit strategy includes non-Agency RMBS and related hedging transactions.
The Non-Agency RMBS is collateralized by prime mortgage loans, Alt-A mortgage loans, pay-option ARM loans and subprime mortgage loans, which may have fixed rate, adjustable rate or hybrid rate terms. Non-Agency RMBS includes both senior and mezzanine RMBS. Its commercial strategy includes first mortgage and mezzanine commercial real estate loans, debt-like preferred equity, B-notes, and related hedging transactions. Its commercial real estate assets include floating and fixed rate commercial real estate loans, including first mortgage loans secured by a first priority mortgage on commercial real estate assets; mezzanine loans secured by a pledge of equity interests in the borrower and structurally subordinate to any loan made directly to the borrower; B-notes, which represent interests in a junior portion of a commercial mortgage loan, and debt-like preferred equity which is senior to the common equity and subordinate to any loan made directly to the borrower. Other assets include financial and mortgage-related assets other than the target assets in its rates, credit and commercial strategies, including residential mortgage loans and certain non-hedging transactions that may produce non-qualifying income for purposes of the REIT gross income tests. The Company is externally managed and advised by PRCM Advisers LLC (PRCM Advisers).
The Company competes with Pine River Capital Management L.P.
Two Harbors Investment Corp
601 Carlson Pkwy Ste 1400
MINNETONKA MN 55305-5222