Finance Of America Companies Inc. (NYSE:FOA) Q4 2023 Earnings Call Transcript

Lee Cooperman: You mentioned your view about interest rates. I happen to be of the view that short rates could drop, but long rates are not going to go down and the effective will probably go up. What’s more important to the 90-day bill rate or the 10-year rate? The reason I say what I say is prior to the Great Financial Crisis, the 10-year bond used to yield in line with nominal GDP, assuming 2% real growth and 3% inflation, that will be 5%. The 10-year wouldn’t be undervalue…

Matthew Engel: We’re not quite out as far as the 10-year, Lee. What’s important to us is probably in the five- to seven-year range.

Lee Cooperman: Five- to seven-year, that rate goes down, whatever. But the 10-year rate is less significant to you than the short-term rates?

Graham Fleming: Yes, our assets are up probably seven-year duration. And then – so that’s kind of where we’re focused on the curve.

Lee Cooperman: Got you. Okay. Thank you very much. Good luck.

Graham Fleming: Thank you.

Operator: There are no further questions at this time. Mr. Fleming, I’ll turn the call back over to you.

Graham Fleming: Yes. So I’d like to thank everybody for joining the call, and we look forward to our updates at the end of Q1, which we expect in May. So thank you, everybody, and good night.

Operator: This concludes today’s conference call. You may now disconnect.