Matthew Howlett: Right.
Jay Lown: And the current interest rate on mortgages is, let’s just round it, 6.5%. So, from the perspective of that portfolio, the way we look at that portfolio is there’s a lot of runway in terms of having pretty strong cash flows before that portfolio is in danger of refinancing outside of normal life events. And so, we really feel good about the strength of the cash flows in that portfolio despite the rates at this point given the duration and the complexity of that portfolio, which is almost non-existent at this point. We think there is a lot of room to run on that portfolio should the Fed cut rates at some point in time before we have to even start thinking about recapture and things around the degradation of that portfolio.
So, we feel really good about the profile of that portfolio today, because the reality is, speeds are your enemy. You can hedge a lot of things rate wise, but speeds are your worst enemy. And from our vantage point, given the (ph) characteristics that are inherent in the portfolio today, we think that asset is going to continue to perform pretty strong.
Matthew Howlett: Yes. Look, the speeds — I mean, what were they under 5 — I’ve never seen them this low in my lifetime — in my career. I don’t know if you’ve seen — I don’t know how much lower they can go, but, I mean, it’s been just incredible to see the speeds fall where they (ph). And I ask that I know your prepayment protected on the MBS side. I was just curious on the servicing. It makes a lot of sense with the strong cash flows. I mean, would — on that scenario, are you seeing — I mean, would you be more active in the bulk market with some of these small originators that are selling or going out of business? I just — I mean, it seems like the value is cheapened up a little bit earlier this year. Would you look to grow that portfolio, Jay, given what looks like there’d be a lot of sellers out there, even some big sellers?
Jay Lown: So, we look at portfolios every day. And for the smaller originators, it’s our expectation that there is a concession in price, which is favorable to us in terms of yield. And so, we absolutely look and see — look at and see a lot of those portfolios on a regular basis. If you’re asking me if we’re seeing a lot of small guys sell, I wouldn’t say we’re seeing a lot of small guys sell. We’re seeing a decent steady flow of volume away from what I would call the (ph) dynamic going on today. But there is an opportunity to acquire the asset at levels that, I would say, were — that are slightly lower than the craziness in the fourth quarter.
Matthew Howlett: Yes. Right. Exactly. That’s exactly where I was going, there might be an opportunity for you guys. Well, look, I’ll just say that the performance has been terrific, I mean, the yield curve is inverted and you guys are generating this positive economic return that looks just terrific, and really congratulate on really some great results and hopefully a very strong 2023. Thanks a lot.
Jay Lown: Thanks, Matt.
Operator: Thank you. I’m showing no questions at this time. I’d like to turn the call back over to management for any closing remarks.
Jay Lown: Thank you, operator. Thank you everybody for joining us on our fourth quarter 2022 earnings call. We look forward to updating you on our first quarter results sometime in May. Have a good evening.
Operator: Thank you. Ladies and gentlemen, this does conclude today’s conference. Thank you all for participating. You may now disconnect. Have a great day.
