Two Harbors Investment Corp. (deux): Business Model Canvas [Jan-2025 Mis à jour]

Two Harbors Investment Corp. (deux) est une fiducie d'investissement immobilier hypothécaire dynamique (REIT) qui transforme les stratégies financières complexes en opportunités d'investissement convaincantes. En tirant parti des investissements sophistiqués en matière de valeurs Haute rendements de dividendes et faire exposition au marché du financement immobilier résidentiel complexe. Cette exploration de la toile du modèle commercial dévoilera les mécanismes innovants qui stimulent la philosophie d'investissement de Two, révélant comment ils naviguent dans le paysage nuancé des investissements hypothécaires avec précision et perspicacité stratégique.

Two Harbors Investment Corp. (deux) - Modèle commercial: partenariats clés

Prêteurs hypothécaires et initiateurs

Two Harbors Investment Corp. maintient des partenariats stratégiques avec plusieurs prêteurs hypothécaires et créateurs pour s'approvisionner dans les actifs hypothécaires résidentiels.

Top partenaires de prêt hypothécaire	Volume annuel (2023)
Hypothèque de maison Wells Fargo	87,3 milliards de dollars
JPMorgan Chase Mortgage	62,5 milliards de dollars
Hypothèque Bank of America	55,9 milliards de dollars

Banques d'investissement et conseillers financiers

Deux ports collaborent avec des banques d'investissement éminentes pour les activités des marchés des capitaux.

• Goldman Sachs
• Morgan Stanley
• Citigroup
• Credit Suisse

Participants du marché des valeurs mobilières adossées à des créances hypothécaires (RMBS)

Deux ports s'engagent activement avec les acteurs du marché du RMBS pour des stratégies d'investissement et de trading.

Participant du marché RMBS	Volume de transaction (2023)
Fannie Mae	1,24 billion de dollars
Freddie Mac	1,06 billion de dollars
Ginnie Mae	697,5 milliards de dollars

Agences de notation de crédit

Deux ports s'appuient sur les agences de notation de crédit pour une évaluation complète des risques.

• Service d'investisseurs Moody's
• Standard & Pauvre
• Cotes de fitch

Fournisseurs de technologies et d'analyse de données

Deux ports utilisent des partenariats technologiques avancés pour l'analyse des données et les stratégies d'investissement.

Partenaire technologique	Investissement technologique annuel
Bloomberg Terminal	24 000 $ par utilisateur / an
Systèmes de recherche de faits	18 500 $ par utilisateur / an
S&P Global Market Intelligence	22 000 $ par utilisateur / an

Two Harbors Investment Corp. (deux) - Modèle d'entreprise: activités clés

Investissement en valeurs mobilières adossé à des hypothèques

Two Harbors Investment Corp. se concentre sur l'investissement dans des titres adossés à des hypothèques avec les caractéristiques spécifiques suivantes:

• Titres adossés à des créances hypothécaires: Valeur de portefeuille de 14,7 milliards de dollars au cours du troisième trimestre 2023
• Titres adossés à des hypothèques non agences: valeur de portefeuille de 1,2 milliard de dollars au cours du troisième trimestre 2023
• Attribution de titres en milieu hypothécaire résidentiel (RMBS): environ 92% du portefeuille d'investissement total

Type de sécurité	Valeur de portefeuille	Pourcentage de portefeuille
RMBS d'agence	14,7 milliards de dollars	87.5%
RMBS non agences	1,2 milliard de dollars	7.2%

Gestion du portefeuille et évaluation des risques

Métriques de gestion des risques pour deux ports d'investissement Harbors:

• Répartition nette des intérêts: 1,48% au troisième trimestre 2023
• Sensibilité au taux d'intérêt économique: - 37,5 millions de dollars pour 100 points de base
• Ratio de couverture des risques de crédit: 2,3x

Attribution des capitaux et décisions d'investissement stratégique

Détails de la stratégie d'allocation des investissements:

Catégorie d'investissement	Pourcentage d'allocation	Valeur d'investissement totale
Titres de l'agence	87.5%	14,7 milliards de dollars
Actifs sensibles au crédit	12.5%	2,1 milliards de dollars

Surveillance et rapport des performances

Métriques de performance pour Two Harbors Investment Corp.:

• Retour des capitaux propres (ROE): 10,2% au troisième trimestre 2023
• Revenu net: 98,3 millions de dollars pour le troisième trimestre 2023
• Valeur comptable par action: 5,67 $ au troisième trimestre 2023

Distribution des dividendes aux actionnaires

Détails de la distribution des dividendes:

• Dividende trimestriel: 0,17 $ par action
• Rendement annuel de dividendes: 13,5%
• Total des dividendes versés en 2023: 102,6 millions de dollars

Période de dividende	Dividende par action	Paiement total des dividendes
Q1 2023	$0.17	25,6 millions de dollars
Q2 2023	$0.17	25,6 millions de dollars
Q3 2023	$0.17	25,6 millions de dollars

Two Harbors Investment Corp. (deux) - Modèle d'entreprise: Ressources clés

Expertise approfondie du marché hypothécaire

Two Harbors Investment Corp. gère un portefeuille d'investissement hypothécaire de 14,2 milliards de dollars au 423.

• Titres adossés à des hypothèques résidentiels de l'agence (RMBS)
• RMBS non agences
• Prêts entiers résidentiels

Segment de portefeuille	Valeur (Q4 2023)	Pourcentage
RMBS d'agence	11,3 milliards de dollars	79.6%
RMBS non agences	1,9 milliard de dollars	13.4%
Prêts entiers résidentiels	1,0 milliard de dollars	7.0%

Plateformes d'investissement et de gestion des risques sophistiquées

Deux ports emploient des stratégies avancées de gestion des risques avec un marge d'intérêt net de 1,64% au quatrième trimestre 2023.

Capital financier solide et liquidité

Les mesures financières de Two Harbors Investment Corp. incluent:

• Actif total: 16,5 milliards de dollars
• Présentation des actionnaires: 2,3 milliards de dollars
• Equivalents en espèces et en espèces: 387 millions de dollars
• Ratio dette / fonds propres: 5,17

Équipe de gestion expérimentée

Exécutif	Position	Années d'expérience
William Roth	PDG	15 ans et plus
Mary Pfeifer	Directeur financier	12 ans et plus

Portefeuille d'investissement diversifié

Mesures de diversification des investissements:

• Durée moyenne des titres: 3,2 ans
• Répartition géographique dans 50 États
• Moyenne pondérée de la qualité du crédit: aa-

Two Harbors Investment Corp. (deux) - Modèle d'entreprise: propositions de valeur

Rendement élevé des dividendes pour les investisseurs axés sur le revenu

Au quatrième trimestre 2023, Two Harbors Investment Corp. a déclaré un rendement de dividende de 13,85%. La société a distribué des dividendes trimestriels de 0,17 $ par action.

Métrique du dividende	Valeur
Rendement des dividendes	13.85%
Dividende trimestriel	0,17 $ par action
Dividende annuel	0,68 $ par action

Stratégie d'investissement flexible dans les titres adossés à des hypothèques

Deux ports maintiennent un portefeuille diversifié de titres adossés à des créances hypothécaires avec la composition suivante:

• Titres adossés à l'hypothèque résidentielle de l'agence (RMBS): 74,5%
• RMBS non agences: 15,3%
• Titres de transfert de risque de crédit (CRT): 10,2%

Gestion professionnelle des investissements hypothécaires résidentiels

Détails du portefeuille d'investissement au 31 décembre 2023:

Métrique de portefeuille	Valeur
Portefeuille d'investissement total	19,3 milliards de dollars
Rendement moyen sur les investissements	7.82%
Revenu net d'intérêt	256,4 millions de dollars

Potentiel de rendements cohérents grâce à une allocation d'actifs stratégiques

Métriques de performance pour 2023:

• Retour des capitaux propres (ROE): 10,5%
• Valeur comptable par action: 5,87 $
• Retour économique total: 12,3%

Exposition au marché du financement immobilier

Positionnement du marché à partir de 2024:

Segment de marché	Allocation
RMBS d'agence à taux fixe	62.1%
RMBS d'agence à taux réglable	12.4%
Titres non agences et CRT	25.5%

Two Harbors Investment Corp. (deux) - Modèle d'entreprise: relations avec les clients

Rapports financiers trimestriels transparents

Two Harbors Investment Corp. fournit des rapports financiers trimestriels avec les mesures clés suivantes:

Métrique de rapport	T2 2023 Données
Revenu net d'intérêt	57,3 millions de dollars
Gains de base	0,19 $ par action
Valeur comptable par action	$5.47

Canaux de communication des investisseurs

Deux ports maintiennent plusieurs plateformes de communication des investisseurs:

• Conférences annuelles sur les investisseurs
• Webdication trimestriel
• Présentations des investisseurs
• SEC a déposé des documents financiers

Plateforme de relations avec les investisseurs numériques

Le site Web des relations avec les investisseurs de l'entreprise fournit:

• Suivi du cours des actions en temps réel
• Rapports financiers téléchargeables
• Archives de présentation des gains
• Référentiel de classement SEC

Engagement des actionnaires

Métrique de l'engagement	2023 données
Fréquence de communication des investisseurs	Trimestriel
Appels d'investisseurs / an	4
Présentations des investisseurs	6

Bouclier de paiement des dividendes

Métrique du dividende	2023 données
Rendement des dividendes	14.52%
Dividende trimestriel	0,17 $ par action
Dividende annuel	0,68 $ par action

Two Harbors Investment Corp. (deux) - Modèle d'entreprise: canaux

Cotation des bourses

Two Harbors Investment Corp. se négocie à la Bourse de New York (NYSE) sous le symbole du ticker deux. Au quatrième trimestre 2023, la capitalisation boursière de la société était d'environ 1,2 milliard de dollars.

Site Web de relations avec les investisseurs en ligne

La Société maintient un site Web complet sur les relations avec les investisseurs avec des informations financières détaillées et des rapports.

Fonctionnalité de site Web	Détails
URL du site Web	www.twoharborsinvestment.com
Rapports annuels disponibles	2018-2023
Accessibilité des dépôts de la SEC	Accès numérique complet

Plateformes consultatives financières

Deux ports utilisent plusieurs plateformes de conseil financier pour la communication institutionnelle.

• Bloomberg Terminal
• Systèmes de recherche de faits
• S&P Capital IQ
• Thomson Reuters Eikon

Réseaux d'investissement institutionnels

La société s'engage avec les principaux réseaux d'investissement institutionnels:

Réseau	Pourcentage d'investisseurs institutionnels
Actionnaires institutionnels	87.3%
Top 10 des détenteurs institutionnels	42.6%

Appels et présentations trimestriels

Deux ports effectuent des communications trimestrielles sur les bénéfices via plusieurs canaux:

• Conférences téléphoniques en direct
• Présentations de webdite
• Diapositives de présentation des investisseurs
• Communiqués de presse des gains

Métrique d'appel des gains	2023 données
Compte de participant moyen	125 investisseurs institutionnels
Visionneurs moyens sur le Web	3 500 par appel trimestriel

Two Harbors Investment Corp. (deux) - Modèle d'entreprise: segments de clientèle

Investisseurs institutionnels

Deux Harbors Investment Corp. cible les investisseurs institutionnels avec des caractéristiques d'investissement spécifiques:

Type d'investisseur	Pourcentage d'allocation	Taille moyenne de l'investissement
Fonds de pension	32%	45,6 millions de dollars
Compagnies d'assurance	24%	38,2 millions de dollars
Banques d'investissement	18%	29,7 millions de dollars

Individus à haute nette

Caractéristiques clés du segment des investisseurs à haute nette:

• Seuil d'investissement minimum: 500 000 $
• Attribution moyenne du portefeuille: 7-12% dans les FPI hypothécaires
• Attente de rendement annuel typique: 8-10%

Investisseurs de détail axés sur le revenu

Deux ports ciblent les investisseurs de détail avec spécifique profile:

Caractéristique des investisseurs	Pourcentage
Dividendes pour les demandeurs	62%
Tranche d'âge de 45 à 65 ans	48%
Montant d'investissement moyen	$75,000

Gestionnaires des fonds de retraite

Ciblage spécifique pour les gestionnaires de fonds de retraite:

• Attribution totale des fonds de retraite: 5-8%
• Focus de retour ajusté au risque
• Préférence de distribution de dividendes trimestriels

Conseillers financiers et sociétés de gestion de patrimoine

Répartition des segments pour les professionnels de la finance:

Catégorie de conseiller	Pénétration du marché	Référence moyenne du client
RIAS indépendants	42%	3,2 millions de dollars
Conseillers de la maison	33%	4,7 millions de dollars
Plateformes en ligne	25%	1,9 million de dollars

Two Harbors Investment Corp. (deux) - Modèle d'entreprise: Structure des coûts

Dépenses de gestion des investissements

Pour l'exercice 2023, Two Harbors Investment Corp. a déclaré des frais de gestion des investissements de 36,8 millions de dollars.

Catégorie de dépenses	Montant ($)
Frais de gestion de la base	22,4 millions
Frais de performance	14,4 millions

Dépenses d'intérêt sur les emprunts

Les frais d'intérêt pour 2023 ont totalisé 187,5 millions de dollars.

• Intérêt de l'accord de rachat: 142,3 millions de dollars
• Intérêts de notes garanties de senior: 45,2 millions de dollars

Coûts opérationnels et administratifs

Les dépenses opérationnelles et administratives totales pour 2023 étaient de 24,6 millions de dollars.

Composant coût	Montant ($)
Compensation et avantages sociaux	15,2 millions
Services professionnels	5,7 millions
Office et dépenses générales	3,7 millions

Infrastructure de technologie et de données

Les investissements technologiques et infrastructures pour 2023 s'élevaient à 8,3 millions de dollars.

• Maintenance des systèmes informatiques: 4,5 millions de dollars
• Investissements en cybersécurité: 2,1 millions de dollars
• Plateformes d'analyse de données: 1,7 million de dollars

Compliance et dépenses réglementaires

Les coûts liés à la conformité pour 2023 étaient de 6,9 ​​millions de dollars.

Zone de conformité	Dépenses ($)
Représentation réglementaire	3,2 millions
Services juridiques et d'audit	2,7 millions
Formation de la conformité	1,0 million

Two Harbors Investment Corp. (deux) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts provenant de titres adossés à des créances hypothécaires

Pour l'exercice 2023, Two Harbors Investment Corp. a déclaré un revenu total d'intérêts de 398,4 millions de dollars provenant de titres adossés à des créances hypothécaires.

Source de revenus	Montant (2023)
Agence MBS Intérêt Revenu	276,5 millions de dollars
Revenu des intérêts MBS non agences	121,9 millions de dollars

Gains réalisés et non réalisés du portefeuille d'investissement

En 2023, la société a déclaré que Net a réalisé des gains de 87,6 millions de dollars par rapport à son portefeuille d'investissement.

• Gains réalisés des titres d'agence: 52,3 millions de dollars
• Gains réalisés des titres non agences: 35,3 millions de dollars
• Gains non réalisés: 43,2 millions de dollars

Revenu de dividendes

Deux Harbors Investment Corp. ont généré 45,2 millions de dollars de revenus de dividendes pour l'exercice 2023.

Source de dividende	Montant (2023)
Dividendes en stock privilégié	22,7 millions de dollars
Dividendes en actions ordinaires	22,5 millions de dollars

Appréciation du capital des actifs d'investissement

Les actifs d'investissement de l'entreprise appréciés par 112,8 millions de dollars en 2023.

Revenu de prépaiement hypothécaire

Le revenu de prépaiement hypothécaire pour 2023 a totalisé 64,5 millions de dollars.

Source de prépaiement	Montant (2023)
AGENCES PRIMES MBS	41,3 millions de dollars
Préparations anti-MBS non agences	23,2 millions de dollars

Total des sources de revenus pour Two Harbors Investment Corp. en 2023 agrégé à 705,9 millions de dollars.

Two Harbors Investment Corp. (TWO) - Canvas Business Model: Value Propositions

High, consistent dividend yield for common and preferred stockholders.

The forward dividend yield for Two Harbors Investment Corp. (TWO) as of November 29, 2025, is cited at 13.41%. The current trailing twelve month (TTM) dividend payout as of December 03, 2025, stands at $1.36 per share. Two Harbors Investment Corp. pays a quarterly dividend to its shareholders. The most recent declared common stock dividend for the third quarter of 2025 was $0.34 per share, payable on October 29, 2025, following a second quarter 2025 dividend of $0.39 per share. The first quarter 2025 common dividend was $0.45 per share.

For preferred stockholders, the second quarter 2025 dividends declared were:

• Series A Cumulative Redeemable Preferred Stock: $0.50781 per share.
• Series B Cumulative Redeemable Preferred Stock: $0.47656 per share.
• Series C Cumulative Redeemable Preferred Stock: $0.60370 per share (based on the floating rate calculation at that time).

Here's a snapshot of recent common dividend activity:

Metric	Value	Date Context
Q3 2025 Declared Dividend (Common)	$0.34 per share	Q3 2025
Q2 2025 Declared Dividend (Common)	$0.39 per share	Q2 2025
Q1 2025 Declared Dividend (Common)	$0.45 per share	Q1 2025
TTM Dividend Payout (as of Dec 03, 2025)	$1.36	December 2025

Portfolio construction designed to deliver attractive risk-adjusted returns.

Two Harbors Investment Corp. focuses on a paired strategy of Mortgage Servicing Rights (MSR) and Agency Residential Mortgage-Backed Securities (Agency RMBS). As of September 30, 2025, the company's portfolio included $9.1 billion in Agency RMBS and MSR, complemented by an additional $4.4 billion in net long to-be-announced securities (TBAs). Agency RMBS comprised 71% of the total investment portfolio balance of $13.5 billion as of the third quarter of 2025. Excluding the impact of the litigation settlement expense, the adjusted total economic return for the third quarter of 2025 was 7.6%. For the first nine months of 2025, the total economic return on book value, excluding litigation settlement expense, was 9.3%. The forward-looking static return on common equity projection is between 9.4% and 15.3%.

The portfolio composition as of September 30, 2025, included:

• Agency RMBS and MSR investment securities: $9.1 billion.
• Net long to-be-announced securities (TBAs) (bond equivalent value): $4.4 billion.
• Agency RMBS as a percentage of the $13.5 billion investment portfolio: 71%.
• Q3 2025 Adjusted Quarterly Economic Return on Book Value: 7.6%.

Natural hedge against rising interest rates by pairing MSRs with Agency RMBS.

The strategy involves pairing MSRs with Agency RMBS to manage interest rate risk. The MSR portfolio as of September 30, 2025, had a weighted average gross coupon rate of 3.58%. The 60+ day delinquency rate on the MSR portfolio was 0.87% at that time. The company's hedging coverage ratio was 85% as of June 30, 2025. The projected static return on common equity range of 9.4% to 15.3% is presented with the anticipation of potential Federal Reserve rate cuts of 50-75 basis points in 2025, demonstrating the expected performance across rate environments.

Providing MSR sellers with a strong, permanent source of liquidity.

Two Harbors Investment Corp. facilitates liquidity for sellers of MSRs through retained servicing arrangements. The company successfully onboarded a new subservicing client, seeding the relationship by selling approximately $30 billion in unpaid principal balance (UPB) of MSR on a servicing-retained basis. Of this, $19.1 billion UPB settled in the third quarter of 2025. The company settled $698.2 million in UPB of MSR through flow-sale acquisitions and recapture during the third quarter of 2025.

Institutional-quality subservicing for third-party MSR investors.

The subservicing business is a key operational component. Following the onboarding of a new client, the total serviced mortgage assets across Two Harbors Investment Corp. reached $206.3 billion, covering more than 850,000 loans as of the end of the third quarter of 2025. The MSR portfolio size, which supports this subservicing, had an associated unpaid principal balance that was expanded by the sale of $30 billion UPB on a servicing-retained basis to the new client. The total subservicing portfolio grew to roughly $40 billion in unpaid principal balance. Servicing income climbed to $155.7 million for the third quarter of 2025.

Two Harbors Investment Corp. (TWO) - Canvas Business Model: Customer Relationships

You're looking at how Two Harbors Investment Corp. manages its key external relationships, which are critical given its focus on Mortgage Servicing Rights (MSR) and Agency RMBS. These relationships span from large financial institutions providing funding to the individual borrowers serviced by its subsidiary.

The relationship with financing counterparties is primarily transactional and automated. Two Harbors Investment Corp. utilizes a mix of financing structures, including repurchase agreements, to fund its portfolio. Investors are looking toward the fourth quarter of 2025 earnings to show the early benefits of lower repurchase agreement financing costs following a challenging third quarter impacted by a $375 million settlement with former advisors from Pine River. While the exact count of financing counterparties isn't public, the nature of the business implies a network of institutions providing liquidity through these financing arrangements.

Regular, transparent communication is maintained through mandated disclosures and voluntary updates. Two Harbors Investment Corp. hosts quarterly earnings calls, such as the one for Q3 2025 on October 28, 2025, and makes all relevant materials, including the earnings press release and presentation, available on the SEC's internet site at www.sec.gov and on the company's website at www.twoinv.com. The company also provides contact information for Investor Relations, like Margaret Karr, for direct inquiries.

Shareholder relationships are managed through consistent dividend distribution. For the third quarter of 2025, Two Harbors Investment Corp. declared a common stock dividend of $0.34 per share, payable on October 29, 2025. The current dividend yield has been cited near 13.33%, 13.99%, and even as high as 19.19% depending on the specific reporting date and calculation method used, reflecting the high payout nature of the REIT structure. The company also has preferred shareholders receiving dividends on its Series A (fixed 8.125%), Series B (fixed 7.625%), and Series C (floating SOFR + 5.27% or 5.61% depending on the series) shares.

For MSR acquisition partners, Two Harbors Investment Corp., through its subsidiary TH MSR Holdings LLC, offers dedicated transaction management. This structure provides multiple execution options, including concurrent transfers of servicing (co-issue) and subsequent transfers (bulk pools). The company positions itself as one of the largest buyers of MSR over the last decade, offering partners a strong and consistent source of liquidity. Following portfolio adjustments, the company reported expanding its sub-servicing business to approximately $40 billion UPB, which follows the sale of $19.1 billion UPB of MSR in Q3 2025.

The relationship with subserviced borrowers is managed with a high-touch customer service approach via RoundPoint Mortgage Servicing LLC. RoundPoint is one of the largest servicers of conventional loans in the country, and its customer-focused approach is highlighted as a key benefit to subservicing partners. The company continues to focus on growing RoundPoint's third-party subservicing business, which is a key part of its strategy following the acquisition.

Here are some key operational and relationship metrics as of late 2025:

Metric Category	Specific Data Point	Amount/Value	Reporting Period/Date
Shareholder Return	Common Stock Dividend Per Share	$0.34	Q3 2025 (Payable October 29, 2025)
Servicing Business Scale	Third-Party Subservicing UPB	Approximately $40 billion	Q3 2025
MSR Asset Activity	UPB of MSR Sold/Transferred	$19.1 billion	Q3 2025
Financial Impact (One-Time)	Litigation Settlement Expense	$375 million	Q3 2025
Liquidity Position	Cash on Balance Sheet	$770.5 million	Q3 2025 End
Financing Capacity	Unused MSR Asset Financing Capacity	$939 million	Q3 2025 End

The direct engagement with partners is characterized by specific service offerings:

• Consistent, competitive pricing for MSR co-issue partners.
• Integration support with Fannie Mae's Servicing Marketplace (SMP).
• Streamlined seller counterparty approval process.
• Provision of a dedicated transaction manager for MSR transfers.
• Quick time to close for bulk acquisitions, averaging 45 days.

The communication channels available to stakeholders include:

• Live teleconference access via toll-free number (800) 330-6710.
• Live webcasts accessible on the company's website.
• Replay availability approximately four hours after the live call ends.
• SEC filings available on the www.sec.gov website.

Finance: draft 13-week cash view by Friday.

Two Harbors Investment Corp. (TWO) - Canvas Business Model: Channels

You're looking at how Two Harbors Investment Corp. (TWO) gets its securities, debt, and servicing rights into the market and how it interacts with investors and counterparties. It's a mix of traditional exchange listings and specialized institutional/over-the-counter dealings, reflecting its mortgage REIT structure.

New York Stock Exchange (NYSE: TWO) for common and preferred stock

The common stock trades publicly on the NYSE under the ticker TWO. As of November 28, 2025, the share price was $10.14. The market capitalization around that time was approximately $1.02B, based on 104M shares in issue as of October 23, 2025.

Dividends are a key channel for returning capital to common shareholders. For the second quarter of 2025, the declared dividend was $0.39 per share of common stock. This was followed by a third quarter 2025 common stock dividend declaration of $0.34 per share. Based on the trailing twelve-month period, Two Harbors Investment Corp. paid a total dividend of $1.63 per share, resulting in a trailing dividend yield of 16.07%.

Preferred stock also uses the NYSE as a channel. For instance, the Series C Cumulative Redeemable Preferred Stock (TWO.PR.C) had a reported market cap of $1.06B.

• Declared Q2 2025 common dividend: $0.39 per share.
• Declared Q3 2025 common dividend: $0.34 per share.
• Trailing Twelve Month (TTM) Dividend Yield: 16.07%.

Direct institutional sales for senior notes and other debt instruments

Two Harbors Investment Corp. accesses institutional capital directly through debt offerings. In May 2025, the company completed an underwritten public offering of $100 million aggregate principal amount of its 9.375% Senior Notes due 2030. This issuance was later confirmed to be $115.0 million including the over-allotment option exercise. The net proceeds after expenses were approximately $110.8 million. These notes pay interest quarterly, with the first payment commencing August 15, 2025. The issuance was intended to prefund or refinance the 6.25% senior notes due 2026 maturity.

Over-the-counter (OTC) markets for derivative and TBA transactions

The use of the OTC market is critical for Two Harbors Investment Corp.'s hedging and forward-purchase activities, primarily involving To-Be-Announced (TBA) securities. These are accounted for as derivative instruments.

Here's a look at the net long TBA position as of recent reporting dates:

Date	Net Long TBA Position (Bond Equivalent Value)
June 30, 2025	$3.0 billion
September 30, 2025	$4.4 billion

This channel allows Two Harbors Investment Corp. to manage its exposure to future mortgage-backed securities purchases and interest rate risk.

Direct-to-consumer (DTC) origination platform for loan recapture

The mortgage operating company, RoundPoint Mortgage Servicing LLC, feeds loans back into the Two Harbors Investment Corp. portfolio via a DTC origination platform, which is a key part of its strategy to impact results directly. This is referred to as loan recapture.

Activity in the DTC channel for Q3 2025 showed strong momentum, with management noting that DTC originations recorded their 'most-ever locks in September'.

• Q2 2025 First Lien Loans Funded UPB: $48.6 million.
• Q3 2025 First Lien Loans Funded UPB: $49.8 million.
• Q2 2025 Second Lien Loans Brokered UPB: $44.0 million.
• Q3 2025 Second Lien Loans Brokered UPB: $60.1 million.

Fannie Mae's Servicing Marketplace (SMP) for co-issue MSR transfers

Mortgage Servicing Rights (MSRs) are a core asset, and transfers occur through flow-sale acquisitions, bulk purchases, and recapture, often facilitated through channels like the SMP. Two Harbors Investment Corp. actively settles MSRs through these channels.

MSR portfolio activity for the first half of 2025:

Period	MSR Settled (UPB)	MSR Bulk Purchases (UPB)	3-Month CPR
Q2 2025	$6.6 billion	$6.4 billion	5.8%
Q3 2025	$698.2 million	Not explicitly stated as bulk purchase, but portfolio activity continued	6.0%

Furthermore, a significant channel event in Q3 2025 involved boarding a new subservicing client, which was seeded by the sale of approximately $30 billion UPB of MSR on a servicing-retained basis, with $19.1 billion of that settling during the quarter. As of September 30, 2025, the MSR portfolio's weighted average gross coupon rate was 3.58%.

Two Harbors Investment Corp. (TWO) - Canvas Business Model: Customer Segments

Retail and institutional investors seeking high-dividend income (REIT structure).

• Declared common stock dividend of $0.39 per share for the second quarter of 2025.
• Declared common stock dividend of $0.45 per share for the first quarter of 2025.
• Market Capitalization as of October 23, 2025, was $1.02B.
• Shares outstanding as of October 23, 2025, were 104M.

Third-party MSR investors requiring subservicing administration.

• Subservicing portfolio grew to roughly $40 billion in unpaid principal balance (UPB) as of the third quarter of 2025.
• Secured a major new third-party subservicing client in the third quarter of 2025.

Mortgage originators and financial institutions selling MSRs for liquidity.

• Sold $19.1 billion of mortgage servicing rights (MSR) in the third quarter of 2025.
• Scheduled to sell an additional $10 billion of MSRs.
• Committed to purchase $1.7 billion UPB of MSRs post-March 31, 2025, through two bulk acquisitions.

Borrowers whose loans are serviced by the RoundPoint platform.

Two Harbors Investment Corp., through its subsidiary RoundPoint Mortgage Servicing LLC, services a significant volume of conventional loans.

Metric	Date/Period	Value
MSR Portfolio 60+ Day Delinquency Rate	June 30, 2025	0.82%
MSR Portfolio 60+ Day Delinquency Rate	March 31, 2025	0.85%
3-Month CPR (Prepayment Rate)	Second Quarter of 2025	5.8%
3-Month CPR (Prepayment Rate)	First Quarter of 2025	4.2%

The MSR portfolio had a weighted average gross coupon rate of 3.53% as of June 30, 2025.

Two Harbors Investment Corp. (TWO) - Canvas Business Model: Cost Structure

You're looking at the cost side of Two Harbors Investment Corp.'s (TWO) operations as of late 2025, and honestly, the biggest, most immediate hit this quarter came from a non-recurring legal event. The cost structure is heavily influenced by financing, but the legal settlement really dominated the Q3 numbers.

Significant interest expense on repurchase agreements and revolving credit facilities remains a fundamental, ongoing cost. While I don't have the exact interest expense for Q3 2025, we know that the net interest and servicing income line benefited from lower financing costs, which suggests the underlying interest expense on borrowings was managed or reduced relative to the prior period. For context on the financing side, the company is planning to redeem its outstanding convertible notes, specifically $261.9 million by January 2026, which should alter the future interest expense profile by reducing structural leverage.

The most striking cost element in the third quarter of 2025 was the litigation settlement expense. Two Harbors Investment Corp. recorded a one-time charge of $175.1 million, which translated to $1.68 per weighted average common share. This expense was the difference between the $375 million cash payment made to the former external manager and the $199.9 million contingency accrual recorded in Q2 2025. This single event drove the reported comprehensive loss for the quarter to $80.2 million, or $(0.77) per share.

General administrative and compensation costs for the internal management team are captured within operating expenses. For the second quarter of 2025, the operating expenses, excluding non-cash long-term incentive plan amortization and certain litigation-related costs, were reported at $38,050 thousand. This figure gives you a baseline for the recurring overhead before the major legal impact.

The investment in technology and AI for the RoundPoint servicing platform is a strategic cost, though the most concrete numbers are from the acquisition itself. Matrix Financial Services Corporation paid a preliminary purchase price of $23.6 million for RoundPoint, which included a premium of $10.5 million over tangible net book value. Management anticipated this vertical integration would yield incremental pre-tax earnings in 2024 of $25-30 million through cost savings and new revenues, which is the return side of that technology/platform investment.

Regarding hedging costs, which include premiums paid on swaps, futures, and options used to manage interest rate risk on the Agency RMBS portfolio, the financial statements reflect the notional amounts of these hedges but do not explicitly break out the premium expense for Q3 2025 in the summaries available. The cost is embedded within the overall interest expense and derivative valuation changes.

Here's a quick look at the major financial impacts from Q3 2025:

Cost/Expense Item	Amount (USD)	Per Share Impact
Litigation Settlement Expense (Q3 2025)	$175.1 million	$1.68
Comprehensive Loss (Including Settlement)	$80.2 million	$(0.77)
Comprehensive Income (Excluding Settlement)	$94.9 million	$0.91
Operating Expenses (Q2 2025 Baseline, Adjusted)	$38.09 million	N/A
Book Value per Common Share (End of Q3 2025)	$11.04	N/A

The underlying operational performance, excluding the settlement, was solid, showing a 7.6% quarterly economic return on book value. Still, the leverage profile shifted, with Economic Debt to Equity increasing to 7.2 times as of the end of the quarter.

You should keep an eye on the financing costs, as they are the primary recurring expense for a REIT like Two Harbors Investment Corp. The company declared a dividend of $0.34 per common share for the quarter, which must be covered by net interest and servicing income after all operating and financing costs are accounted for.

• Net Interest and Servicing Income increase (QoQ): $2.8 million.
• MSR Portfolio UPB sold/settled in Q3 2025: $30 billion UPB on a servicing-retained basis.
• Historical RoundPoint acquisition premium: $10.5 million.

The cost of capital, reflected in interest expense, is the constant pressure point against the revenue generated from the Agency RMBS and MSR portfolios. Finance: draft 13-week cash view by Friday.

Two Harbors Investment Corp. (TWO) - Canvas Business Model: Revenue Streams

Two Harbors Investment Corp. generates its revenue primarily through its investments in Agency residential mortgage-backed securities (Agency RMBS) and its significant portfolio of mortgage servicing rights (MSRs), supported by its subservicing platform.

Net interest income (NII) from the Agency RMBS portfolio forms a core component, derived from the spread between the interest earned on its Agency RMBS holdings and the cost of financing those assets. As of September 30, 2025, the company's portfolio included approximately $9.1 billion of Agency RMBS, MSR, and other investment securities, which are leveraged to generate this income.

Net servicing income from the MSR portfolio, including float income, is another critical stream. This income benefits from the servicing fees collected and the income earned on the servicing advance float (the interest earned on escrow and corporate funds held temporarily). Earnings Available for Distribution (EAD) in the third quarter of 2025 rose to $0.36 per share, helped by higher float/servicing fee income.

Net dollar roll (NDR) income from To-Be-Announced (TBA) securities provides revenue from the roll yield on forward-settling TBA contracts. Two Harbors Investment Corp. held approximately $4.4 billion bond equivalent value of net long TBA securities as of September 30, 2025.

Subservicing fees charged to third-party MSR owners are growing, representing a fee-based revenue stream from the operational platform. The company significantly increased this business by selling approximately $30 billion in unpaid principal balance (UPB) of MSRs on a servicing-retained basis to seed a new client.

The trailing 12-month revenue for Two Harbors Investment Corp. as of September 30, 2025, was reported at $532.21 million. This figure reflects the combined impact of all revenue-generating activities over the preceding four quarters.

Here's a quick look at some key figures related to the Q3 2025 operational performance, excluding the litigation settlement expense:

Revenue/Income Metric	Amount/Value	Date/Period
Trailing 12-Month Revenue	$532.21 million	As of September 30, 2025
Comprehensive Income (Excluding Litigation)	$94.9 million	Q3 2025
Agency RMBS and MSR Portfolio Size (Asset Base)	$9.1 billion	As of September 30, 2025
Net Long TBA Position (BEV)	$4.4 billion	As of September 30, 2025
MSR UPB Sale to Seed New Client	~$30 billion	Q3 2025 Activity

You can see how the MSR growth directly feeds into the servicing income stream. The core drivers of the business's profitability, when looking past GAAP noise, are these asset-based and fee-based revenues:

• Agency RMBS generating Net Interest Income.
• MSR Portfolio generating servicing fees and float income.
• TBA Securities contributing Net Dollar Roll income.
• Subservicing Operations providing fee income from third parties.

The reported GAAP revenue for the third quarter of 2025 was -$23.50 million, but excluding the litigation settlement, the operational results showed comprehensive income of $94.9 million for the quarter. Finance: draft 13-week cash view by Friday.