Two Harbors Investments Corp. (NYSE: TWO) is a real estate investment trust (REIT) specializing in residential mortgage assets. The company builds and manages a diversified portfolio of mortgage‐backed securities (MBS) and related instruments, including agency‐guaranteed residential MBS, non‐agency RMBS, residential whole loans and mortgage servicing rights. Through a combination of asset selection, financing strategies and risk management, Two Harbors seeks to generate attractive risk‐adjusted returns and consistent income distributions for its shareholders.
Two Harbors employs a variety of financing arrangements, such as repurchase agreements, to leverage its investment capital while maintaining prudent liquidity levels. The company uses derivatives—most notably interest rate swaps, futures and option contracts—to hedge interest rate and convexity risk across its holdings. This active hedging strategy allows Two Harbors to manage the sensitivity of its portfolio to changes in interest rates and to capitalize on yield curve opportunities.
Founded in 2009 and reorganized as a REIT in 2013, Two Harbors has offices in Santa Monica, California, and Minneapolis, Minnesota. Its leadership team is led by Chief Executive Officer Connor J. O’Brien and Chief Financial Officer Mark W. Gilman, both of whom bring extensive experience in fixed income markets and mortgage finance. The board and senior management draw upon decades of experience in investment management, structured finance and credit analysis to guide the firm’s strategic direction.
Serving the U.S. residential mortgage market, Two Harbors focuses on liquidity, credit quality and portfolio diversification to navigate evolving housing and interest rate environments. By balancing agency‐backed and non‐agency assets and adjusting leverage through its financing platforms, the company aims to deliver stable income streams while positioning its portfolio to respond to shifts in the broader economic and regulatory landscape.
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