Company: ADAMM
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001273685-25-000072
Chunk: 200

Company: ADAMAS TRUST, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 200
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 interest rates and the supply and demand for mortgage-, housing- and credit-related assets in the marketplace, market volatility, our ability to identify and acquire assets on favorable terms, our ability to dispose of assets from time to time on favorable terms, the ability of our operating partners, tenants and borrowers of our loans and those that underlie our investment securities to meet their payment obligations, the terms and availability of adequate financing and capital, general economic and real estate conditions (both on a national and local level), the impact of government actions in the real estate, mortgage, credit and financial markets, and the credit performance of our credit sensitive assets.

Financial markets continued to experience volatility in the second quarter of 2025, due in part to the U.S. presidential administration’s announcement of broad U.S. tariffs on imported goods in early April 2025, trade policy uncertainty, debate over the “One Big Beautiful Bill Act of 2025” (the “OBBBA”) and elevated geopolitical tensions. Mortgage-related markets remained challenged in the second quarter of 2025; while origination volumes increased in the second quarter of 2025, such increases were accompanied by lower margins, reflecting rate volatility. Nevertheless, the Dow Jones Industrial Average finished the second quarter of 2025 up 4.98%, and the Nasdaq Composite Index finished the second quarter of 2025 up 17.75%. Trade, interest rate and monetary policy uncertainty, mixed inflation data and geopolitical instability have further cautioned a number of economic outlooks, with concerns regarding the potential for stagflation persisting. We anticipate that due to ongoing uncertainty related to trade policy, inflation, interest rates, monetary policy, the U.S. debt limit and the implementation of the new U.S. presidential administration’s policies, markets and the pricing for many of our assets will continue to experience volatility in 2025.

The market conditions discussed below significantly influence our investment strategy and results:

Select U.S. Financial and Economic Data. The U.S. economy grew at an accelerated rate in the second quarter of 2025 with real gross domestic product (“GDP”) increasing by 3.0% (advanced estimate) annualized rate, as compared to the annualized 0.5% GDP decrease in the first quarter of 2025. While GDP grew in the second quarter of 2025, inflation remains persistently above the Federal Reserve’s target of two percent, job growth remains robust and U.S. trade policy remains volatile. Uncertainty about how the Federal Reserve may adjust its monetary