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Note 2 - Mortgage-backed Securities and U.S. Treasury Securities, at Fair Value
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 2. MORTGAGE-BACKED SECURITIES AND U.S. TREASURY SECURITIES, AT FAIR VALUE

 

The following table presents the Company’s RMBS portfolio that are remeasured at fair value through earnings as of December 31, 2025 and December 31, 2024:

 

(in thousands)

                        
  

December 31, 2025

  

December 31, 2024

 
  

Par Value

  

Cost (1)

  

Fair Value

  

Par Value

  

Cost (1)

  

Fair Value

 

Fixed-rate RMBS

 $10,345,029  $10,558,236  $10,615,570  $5,431,274  $5,540,596  $5,237,812 

Other

  -   16,103   13,088   -   18,832   15,498 

Total

 $10,345,029  $10,574,339  $10,628,658  $5,431,274  $5,559,428  $5,253,310 

 

(1)

The cost information in the table above represents the aggregate current par value, multiplied by the purchase price of each security in the portfolio.

(2)

The notional balance for the interest-only securities portfolio was $72.9 million and $85.8 million as of December 31, 2025 and 2024, respectively.

(3)The notional balance for the inverse interest-only securities portfolio was $17.7 million and $22.0 million as of December 31, 2025 and 2024, respectively.

 

The following table is a summary of the Company's net gain (loss) from the sale of mortgage-backed securities for the years ended December 31, 2025, 2024 and 2023.

 

(in thousands)

            
  

2025

  

2024

  

2023

 

Proceeds from sales of RMBS

 $1,380,091  $454,272  $797,633 

Carrying value of RMBS sold

  (1,386,412)  (458,874)  (820,275)

Net loss on sales of RMBS

 $(6,321) $(4,602) $(22,642)
             

Gross gain on sales of RMBS

 $2,975  $510  $2,705 

Gross loss on sales of RMBS

  (9,296)  (5,112)  (25,347)

Net loss on sales of RMBS

 $(6,321) $(4,602) $(22,642

)

 

During the year ended December 31, 2024, the Company resecuritized RMBS with a fair value of $221.7 million by transferring the RMBS into a larger RMBS backed by the transferred RMBS. The Company retained the larger RMBS. No gain or loss was recorded on this resecuritization.