Cost Savings And Fee IncomeSince acquiring RoundPoint, TWO has achieved substantial cost savings by servicing its own portfolio and generating fee income by subservicing for others.
Dividend SustainabilityThe dividend, which currently yields 13.8% annualized, is viewed as sustainable.
Positioning And ReinvestmentTWO is regarded as well-positioned with a high-yielding and sustainable dividend, wide RMBS spreads for reinvestment, and low prepayment speeds benefiting MSR performance.