Invesco Mortgage Capital Inc. (IVR) SEC Filings & Earnings Calls

High leverage with debt-to-equity ratio of 6.8x and economic debt-to-equity of 7.5x; interest rate sensitivity from swaps and futures.

“Debt-to-equity 6.8x; economic debt-to-equity 7.5x; $5.04B notional interest rate swaps; $1.605B short Treasury futures.”

Interest rate risk

“Unrealized losses on MBS of $21.2 million in Q2 2026 indicate sensitivity to interest rate changes.”

Leverage risk

“Repurchase agreements increased to $6.2 billion, representing high leverage relative to equity.”

Interest rate volatility and geopolitical developments remain sources of uncertainty.

“While uncertainty surrounding monetary policy and geopolitical developments persists...” · word for word

Effective interest rate margin declined 23bps QoQ, indicating some compression in spread income.

“Effective interest rate margin 2.82% compared to 3.05% in Q1 2026.”

Preliminary data subject to revision; high leverage (economic debt/equity 7.5x) indicates elevated risk.

“Economic debt-to-equity ratio of 7.5x; preliminary unaudited data” · word for word

High leverage (6.2x GAAP, 7.3x economic) exposes the company to interest rate and margin compression risks.

“Debt-to-equity ratio of 6.2x and economic debt-to-equity ratio of 7.3x” · word for word

Book value decline from $8.72 to $8.08 in Q1 2026 indicates market value erosion.

“Book value per common share of $8.08 as of April 30, 2026, down from $8.72 as of December 31, 2025.” · word for word

Geopolitical conflict and energy price surge increase inflation and volatility

“The decline accelerated following the outbreak of conflict in the Middle East toward the end of February to end the quarter notably weaker.” · word for word

Higher interest rates and volatility negatively impact portfolio valuations

“Interest rate volatility also moved higher during the quarter, driven by rising concerns around a weakening labor market and increasing geopolitical risks.” · word for word

Book value decline of 7.3% due to higher interest rate volatility and Agency RMBS underperformance.

“Book value declined by 7.3% to $8.08 at quarter end” · word for word

Increased economic leverage to 7.5x from 7.0x, amplifying sensitivity to market moves.

“Economic debt-to-equity ratio increased to 7.5x as of quarter end, up from 7.0x” · word for word

High leverage (debt-to-equity 6.1x, economic 7.5x) increases sensitivity to interest rate and credit market changes.

“Debt-to-equity ratio of 6.1x and economic debt-to-equity ratio of 7.5x.” · word for word

Preliminary data subject to revision, increasing uncertainty.

“The information in this press release is preliminary and unaudited.”

Interest rate volatility and geopolitical uncertainty

“Performance came under pressure in the latter half of the first quarter, however, as interest-rate volatility increased amid heightened geopolitical uncertainty in the Middle East.” · word for word

External management and related party conflicts

“the terms of the management agreement between us and our manager were negotiated between related parties, and the terms, including fees and other amounts payable, may not be as favorable to us as if they had been negotiated with an unaffiliated third party.” · word for word

Dependence on manager and Invesco

“We are externally managed and do not have any employees. Our executive officers are employees of our manager or one of its affiliates and do not receive compensation from us.” · word for word

High leverage (6.0x debt-to-equity, 7.3x economic) exposes company to interest rate and liquidity risks.

“Debt-to-equity ratio of 6.0x and economic debt-to-equity ratio of 7.3x” · word for word

Potential dilution from new ATM program; up to 40M shares could be sold, increasing share count significantly.

“Company may sell up to 40,000,000 shares of its common stock” · word for word

Interest rate sensitivity

“Elevated inflation, interest rate volatility...could have an adverse effect on our business, including on the value of our investments and collateral securing our financing”

REIT qualification risk

“If we fail to qualify as a REIT in any tax year, then: we would be taxed as a regular domestic corporation...any resulting tax liability could be substantial” · word for word

Leverage remains elevated at 6.1x debt-to-equity, with economic leverage at 7.1x including TBAs, exposing the company to interest rate and margin call risk.

“Debt-to-equity ratio of 6.1x and economic debt-to-equity ratio of 7.1x” · word for word

Interest rate volatility and spread risk remain key; portfolio duration and leverage could amplify losses if rates rise sharply.

“CEO notes near-term risks as balanced following strong performance; debt-to-equity increased to 7.0x.”

Dividend sustainability depends on Agency MBS market conditions

“CEO cites 'improved environment for Agency MBS' as basis for dividend increase.”

Interest rate risk

“Our operating results depend in large part upon differences between the yields earned on our investments and our cost of borrowing and interest rate hedging activities.” · word for word

Margin call risk

“When the value of the securities pledged to secure a repurchase loan decreases to the point where the positive difference between the collateral value and the loan amount is less than the haircut, our lenders may issue a 'margin call'.” · word for word

Prepayment risk

“In general, an increase in prepayment rates will accelerate the amortization of purchase premiums, thereby reducing the interest income earned on the investments.” · word for word

Interest rate volatility and swap spread tightening could reverse, pressuring valuations.

“swap spreads reversed a portion of their tightening experienced during the second quarter, providing a tailwind for performance” · word for word

Preferred stock liquidation preference remains a drag on common equity.

“liquidation preference of the Company's Series C Preferred Stock ($173.3 million as of September 30, 2025)” · word for word