Company: ADAMM
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001273685-25-000028
Chunk: 247

Company: ADAMAS TRUST, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 247
---
$69,790 $(68,505)Consolidated SLST2,902 (10,016)12,918 CDOs at fair value(1,484)— (1,484)Senior unsecured notes at fair value(310)— (310)Preferred equity and mezzanine loan investments(4,717)1,079 (5,796)Investment securities(88,822)36,343 (125,165)Mortgage servicing rights616 — 616 Total unrealized (losses) gains, net$(90,530)$97,196 $(187,726)

We recognized net unrealized losses in 2024 primarily due to an increase in interest rates, which impacted the pricing of our investment securities and residential loans. The net unrealized losses on our investment securities were more than offset by unrealized gains on our derivative instruments, as discussed below. The unrealized losses on residential loans were more than offset by the reversal of unrealized losses as a result of foreclosures, payoffs and sales during the year.

We recognized net unrealized gains in 2023, primarily due to credit spread tightening that impacted the pricing of our residential loans. Net unrealized gains on our investment securities for the year ended December 31, 2023 included unrealized gains recognized on Agency RMBS purchased in 2023.

Gains (Losses) on Derivative Instruments, Net

The following table presents the components of gains (losses) on derivative investments, net for the years ended December 31, 2024 and 2023, respectively (dollar amounts in thousands):

For the Years Ended December 31,20242023$ ChangeUnrealized gains (losses) on derivative instruments$83,899 $(29,373)$113,272 Realized gains on derivative instruments12,097 2,995 9,102 Total gains (losses) on derivative instruments, net$95,996 $(26,378)$122,374 

We recognized $96.0 million in net gains on derivative instruments in 2024, primarily due to increases in interest rates which resulted in higher valuations of our interest rate swaps. We also recognized net realized gains on derivative instruments resulting from net payments received on instruments, partially offset by losses realized on contract terminations in 2024.

We recognized $26.4 million in net losses on derivative instruments in 2023, primarily due to decreases in fair