Capstead Mortgage Corp. earned almost $42 million in the fourth quarter, flat from 3Q, but a 27% jump from the same period a year earlier.
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In its earnings statement the publicly traded REIT noted that in the fourth quarter the yield on its interest-earning assets fell sequentially by 5 basis points to 2.07%.
The Dallas-based company primarily invests in agency/government backed MBS collateralized by ARMs.
Although mortgage rates have been falling the past few months, Capstead noted that it has not been affected all that much. “Mortgage prepayments continue to be a positive differentiating factor for Capstead,” the company said.
At yearend the REIT held $12.2 billion of mortgage-related assets compared to $8.5 billion at Dec. 31, 2010.
