Putting capital earned from its recent initial public offering to good use, ""AG Mortgage Investment Trust"":http://angelogordon.com/index.cfm, Inc., announced that it has achieved significant deployment of its new liquidity. The company's IPO and simultaneous private placement were concurrently completed on July 6, and by utilizing the capital gained in that transaction as well as the underwriters' overallotment option, established and closed on July 20, AG has also been able to debut its initial portfolio.[IMAGE]
AG has already acquired $1.39 billion in aggregate securities, through a combination of $880.9 million in government guaranteed, 15-year fixed-rate residential mortgage backed securities; $242.2 million in 20-year fixed-rate government-backed RMBS; $47.6 million in government-sponsored interest only strips; $45.8 million in inverse government guaranteed interest only strips; $82.3 million in non-government RMBS; $20 million in commercial mortgage-backed securities; $23.8 million in credit derivative trades; and $50 million in forward purchases of specified government-backed loan pools.[COLUMN_BREAK]
Additionally, AG opted into $628 million of notional, pay-fixed, receive-LIBOR swaps that will mature between February 2012 and July 2016.
The company's various acquisitions encompass master repurchase agreements with 13 partners, with which AG has borrowed $1.03 billion; AG's repurchase initiatives will reach maturity between August 12, 2011 and October 21, 2011.
Commenting on the active capital strategy, David Roberts, AG's CEO, said, ""We are pleased with our initial deployment of capital and our progress during the first several weeks of operation and capital investment.""
Adding to Roberts' statement, the company's chief investment officer, Jonathan Lieberman, said, ""We believe our opportunistic capital deployment demonstrates our ability to identify, purchase, and finance attractive targeted assets. Our strategy was to initially overweight the portfolio with 15- and 20-year Agency RMBS.
""Opportunistically,"" he added, ""the investment team also added Agency RMBS derivatives, Non-Agency RMBS and CMBS assets to the portfolio. Our tepid view of the U.S. housing and jobs market has remained consistent and has been underscored by recent weak economic data. Since the completion of our IPO, we have actively managed our risk, leverage and liquidity in anticipation of higher levels of volatility and a weaker economic outlook.
""We remain highly focused upon delivering strong value for our shareholders within our risk and volatility parameters,"" he said.
AG Mortgage Investment Trust, Inc., is managed and advised by AG REIT Management, LLC, which is a subsidiary of Angelo, Gordon & Co., L.P. AG serves as a real estate investment trust that provides capital for, acquires, and manages a wide range of residential mortgage assets within its portfolio.