What We Do

Asset Management

We believe our management model appeals to investors in search of investment stability and consistent income.  We seek to provide a diversification tool which will generate a more attractive risk-adjusted rate of return than traditional fixed-income alternatives.  We specialize in residential mortgages with a deep knowledge of publicly traded mortgage related companies.

Strategy Highlights

  • Similar strategy utilized by financial institutions, including banks and savings & loans
  • Capture historically positive spread relationship between the yields on short-duration Agency MBS and short-term financing rates
  • Use both equity and borrowed funds to generate income from the interest earned on our investment assets less the costs associated with borrowing and hedging
  • Investing in highly liquid and in most cases government guaranteed assets, robust financing capabilities exist
  • Modify the mix of leverage and equity funding to achieve the desired risk vs. reward profile

Manager Objectives

  • Achieve durable risk adjusted returns over various interest rate, housing and economic cycles
  • Minimize credit risk
  • Maximize tax efficiency
  • Identify and capitalize on relative value of discrepancies in the RMBS markets
  • Actively manage cash flows to provide for opportunistic investing and regular distributions to our Clients
  • Conservatively manage financing, interest, and prepayment risks
  • Diversify and limit counterparty risk
  • Offer uncorrelated returns vs. other asset classes
  • Utilize hedging strategies to mitigate the impact that changing interest rates have on our portfolio
  • 20 +

    Repo Counterparty Relationships

  • 15 +

    investment bank trading partners

  • 6 +

    Direct Relationships with Mortgage Originators

  • 100 +

    Years of Financial Service Management

Operational Experience

Hatteras Financial (“HTS”) was an externally-managed mortgage REIT formed in 2007 to invest in adjustable-rate and hybrid adjustable-rate single family residential MBS issued or guaranteed by the U.S. Government or U.S. Government sponsored entities such as Fannie Mae, Freddie Mace, or Ginnie Mae. The strategy expanded from strictly ARMs to include agency fixed rate MBS. The strategy evolved into mortgage credit with the formation of a subsidiary, Onslow Bay Financial in 2013, which was a Jumbo Whole Loan ARM conduit purchasing residential whole loans from large non-bank originators. Onslow Bay completed its first securitization transaction in December 2015 which was the first deal post financial crisis composed of newly originated Jumbo ARMs. Further diversification was accomplished in 2015 with the acquisition of Pingora Asset Management, a leader in purchasing and managing of mortgage servicing rights (MSR). This completed the journey from a pure play agency mortgage REIT into a top flight hybrid mortgage REIT.

Annaly Capital Management, Inc. to Acquire Hatteras Financial Corp. for $1.5 Billion

Look at Our Growth Statistics

  • October 2007

    Hatteras Financial
    Corp formed

  • November 2007

    1444 Private
    Placement $164mm

  • Februrary 2008

    144A Private

  • April 2008

    Hatteras IPO on
    NYSE, $276mm

  • December 2010

    $10.8bb in Assets

  • 2010-2013:

    Follow-on raises of

  • August 2012

    Preferred Offering

  • November 2007

    $27.0bb in assets

  • July 2013

    Onslow Bay
    Financial Formed

  • December 2014

    Onslow Bay locks
    initial loans

  • June 2015

    HTS acquires MSR
    Pingora Asset
    Manager (Denver, CO)

  • December 2015

    Onslow Bay closes
    first securitization
    (OBX 2015-1)

  • July 2016

    HTS acquired by
    Annaly for $1.5bb