Company: MITN
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001514281-25-000062
Chunk: 227

Company: AG Mortgage Investment Trust, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 227
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 existing financing arrangements increase, our liquidity will proportionately decrease. We intend to maintain a level of liquidity in relation to our borrowings that enables us to meet reasonably anticipated margin calls but that also allows us to be substantially invested in the residential mortgage market. We may misjudge the appropriate amount of our liquidity by maintaining excessive liquidity, which would lower our investment returns, or by maintaining insufficient liquidity, which may force us to liquidate assets into potentially unfavorable market conditions and harm our results of operations and financial condition. 

Similar to the margin calls that we receive on our borrowing agreements, we may also receive margin calls on our derivative instruments when their fair value declines. This typically occurs when prevailing market rates change adversely, with the severity of the change also dependent on the terms of the derivatives involved. We may also receive margin calls on our 

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derivatives based on the implied volatility of interest rates. Our posting of collateral with our counterparties can be done in cash or assets, and is generally bilateral, which means that if the fair value of our interest rate hedges increases, our counterparty will be required to post collateral with us. Refer to the "Liquidity risk – derivatives" section of Item 3 below for a further discussion on margin.

Cash flows

The below details changes to our cash, cash equivalents, and restricted cash for the three months ended March 31, 2025 and 2024 (in thousands).

Three Months EndedMarch 31, 2025March 31, 2024ChangeCash and cash equivalents and restricted cash, Beginning of Period$138,568 $125,573 $12,995 Net cash provided by (used in) operating activities (1)11,997 11,972 25 Net cash provided by (used in) investing activities (2)(314,725)(248,231)(66,494)Net cash provided by (used in) financing activities (3)293,377 227,320 66,057 Net change in cash and cash equivalents and restricted cash(9,351)(8,939)(412)Cash and cash equivalents and restricted cash, End of Period$129,217 $116,634 $12,583 

(1)Cash provided by operating activities is primarily attributable to net interest income less operating expenses for the three months ended March 31, 2025. 

(2)Cash used in investing activities for the three months ended March 31, 2025 was primarily attributable to purchases of residential