Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) Q2 2023 Earnings Call Transcript

And I think you will see slowly us take up leverage of it as we feel again to Julian’s point, ball is coming down, things are starting to stabilize and market reactions to economic data, geopolitical news etcetera, it doesn’t create the volatility in the markets that it still currently does today. So, our intention, I can tell you is over time, we would like to take up the leverage somewhat. I can’t tell you exactly how, but I think that’s really – the federal says data dependent. It’s really dependent upon the ability to the market to get to a point where it’s able to absorb economic data and information and news and stabilize. And so I think that’s in the next 6 to 12 months? Absolutely.

Matthew Howlett: Yes. Look, it’s clear, I mean, the earnings power is significant. I mean, if you take up just a turn and I think that’s – I think something we have all been waiting for, I know, clearly it’s been incredibly volatile and you are doing a great job managing through it. But I think to hear you say you have a lot of dry powder and that you are just – that you have the ability to – gives me comfort that obviously there is significant earnings power in the company when the time was right?

Jay Lown: Yes, remember, that’s all going to come in on the RMBS too. We are pretty comfortable with where we are levered on, on the MSR front. Broadly speaking, we run about a 60% LTV. When we think about leverage on the MSRs and given some of the things that have happened over time etcetera, etcetera, we are comfortable with that level for the MSRs. So if you think about where this additional level could come from most likely, it would come from the RMBS side of us.

Matthew Howlett: Got it. Well, great quarter and we look forward to the next story of growth with the company that Thanks, Jay. Thanks, everybody.

Jay Lown: Sure. Take care, Matt.

Operator: Showing no further questions at this time, I would now like to turn the conference back to Jay for closing remarks.

Jay Lown: Thank you, operator. Thank you, everybody, for joining us on our second quarter 2023 earnings call. We look forward to updating you soon on our third quarter’s performance. Have a good evening.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.