Invesco Mortgage Capital Inc.

Invesco Mortgage Capital Inc. is a U.S.-based mortgage REIT that invests in, finances, and manages mortgage-backed securities and related mortgage assets. Its business is designed to generate returns mainly through dividends, using leverage, hedging, and active portfolio management to earn spread income from agency and non-agency mortgage securities.

— Invesco Mortgage Capital Inc.
%
Agency RMBS45% Residential mortgage-backed securities guaranteed by U.S. government agencies or GSEs.
Agency CMBS20% Commercial mortgage-backed securities with agency or GSE guarantees.
Non-agency mortgage securities15% RMBS and CMBS without government or GSE guarantees, carrying more credit risk.
Hedging and financing instruments15% TBA contracts, repurchase financing, and Treasury positions used to manage duration and liquidity.
Other mortgage-related investments5% Unconsolidated ventures and other real estate-related financing arrangements.

The company does not sell to end consumers; its capital comes from public equity investors who buy the stock for...

  • Public stockholdersprimary

    Buy common stock for dividend yield and capital appreciation tied to mortgage spread performance.

  • Institutional equity investorsprimary

    Allocate to the shares as a listed REIT exposure to agency mortgage assets and leverage-driven returns.

  • Repo and financing counterpartiessecondary

    Provide secured borrowing against the investment portfolio, enabling leverage and liquidity.

  • Mortgage dealers and originatorssecondary

    Supply mortgage securities and trading opportunities that the company acquires and hedges.

  • Underlying mortgage borrowerssecondary

    Homeowners and commercial property borrowers determine collateral cash flows and prepayment behavior.

The company is headquartered in Atlanta, Georgia and operates as a U.S. REIT with a portfolio concentrated in U.S...

  • •Headquartered in Atlanta, Georgia
  • •Portfolio concentrated in U.S. mortgage-backed securities
  • •Exposure is driven by U.S. rates, prepayments, and repo markets
  • •No meaningful non-U.S. operating footprint disclosed
  • •U.S. government agencies and GSEs are central to collateral quality

The company’s strategy is to earn attractive risk-adjusted returns from mortgage spread investing while preserving...

01
Preserve dividend capacity through spread managementshort-term

Net interest income is the core earnings engine, so stable spreads support distributions.

02
Control interest-rate and prepayment exposureshort-term

Rate moves and CPR changes directly affect asset values, funding costs, and income.

03
Maintain liquidity and financing accessmedium-term

The business depends on repo markets and margin availability to support leverage.

04
Use Invesco platform to source and hedge assetsmedium-term

Manager relationships and analytics improve access to opportunities and risk control.

The business is highly sensitive to interest rates, prepayment speeds, and mortgage market spreads, which can quickly...

high

Interest rate volatility

Asset values, funding costs, and prepayment speeds are all rate-sensitive.

Scope
Agency RMBS, CMBS, repo borrowings, derivatives
Materiality
high
high

Liquidity and margin risk

Leverage is funded through repurchase agreements that can require collateral posting.

Scope
Repurchase agreements and liquid asset sales
Materiality
high
medium

Derivative valuation volatility

Hedges can move sharply in fair value and affect GAAP earnings and book value.

Scope
Interest-rate swaps, TBA contracts, other derivatives
Materiality
high
medium

Credit and asset performance risk

Non-agency securities and mortgage collateral can suffer losses or weaker cash flows.

Scope
Non-agency RMBS/CMBS and unconsolidated ventures
Materiality
medium
medium

Manager conflict and allocation risk

Invesco-managed accounts may compete for the same assets and financing.

Scope
Sourcing, allocation, and support during stressed markets
Materiality
medium
Fair value measurement of mortgage securities
Portfolio marks can create large unrealized gains or losses
Derivative accounting
Swaps and TBA contracts can materially affect quarterly results
Interest income recognition
Changes in CPR assumptions alter net interest income
Leverage and repo disclosures
Affects liquidity analysis and risk assessment

Invesco Ltd.

IVZ · Investment Advice

DYNEX CAPITAL INC

DX · Real Estate Investment Trusts

InPoint Commercial Real Estate Income, Inc.

ICR-PA · Real Estate Investment Trusts

Enact Holdings, Inc.

ACT · Insurance Agents, Brokers & Service

Cherry Hill Mortgage Investment Corp

CHMI · Real Estate Investment Trusts

PennyMac Financial Services, Inc.

PFSI · Mortgage Bankers & Loan Correspondents

: 28/04/2026