New York Mortgage Trust, Inc. is a real estate investment trust, or REIT, in the business of acquiring, investing in, financing and managing primarily mortgage-related assets. Our principal business objective is to generate net income for distribution to our stockholders resulting from the spread between the interest and other income we earn on interest-earning assets and the interest expense we pay on the borrowings we use to finance our leveraged assets and operating costs. We intend to achieve this objective by building and managing a diversified investment portfolio comprised of a broad class of mortgage-related and financial assets that in the aggregate, will generate attractive risk-adjusted total returns for our stockholders. Our targeted assets currently include:

• Agency and non-Agency Residential Mortgage Backed Securities (RMBS).
• Prime Adjustable Rate Mortgage (ARM) loans held in securitization trusts.
• Commercial Mortgage Backed Securities (CMBS), commercial mortgage loans and other commercial real estate-related debt investments.

We have elected to be taxed as a REIT for federal income tax purposes commencing with our taxable year ended on December 31, 2004. As a result, we generally will not be subject to federal income tax on the taxable income that we distribute to our stockholders.

Investment Strategy

Since 2009, NYMT has repositioned its investment portfolio away from one primarily focused on leveraged Agency RMBS and prime ARM loans held in securitization trusts, to a more diversified portfolio that includes elements of credit risk with reduced leverage. NYMT intends that its investment strategy will enable it to capitalize on current investment opportunities in both the residential and commercial mortgage markets that it believes will provide attractive risk adjusted returns to its stockholders over the long term.

NYMT's overall investment strategy is designed, among other things, to:

• Build a diversified investment portfolio of mortgage-related and financial assets that will provide attractive risk-adjusted returns to the stockholders across a variety of market conditions and economic cycles.
• Take advantage of pricing dislocations created by distressed sellers or distressed capital structures and other market inefficiencies.
• Identify investment opportunities that may permit us to utilize all or a portion of a net operating loss carry-forward.
• Capitalize on opportunities in niche markets that other investors may overlook or undervalue.
• Establish a more diversified risk profile that is not focused solely on interest rate or credit risk and properly manage financing, prepayment and other market risks.
• Manage cash flow so as to provide for regular quarterly distributions to stockholders.