- 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.
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.