Company: TWO-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001465740-25-000104
Chunk: 194

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 8
Chunk 194
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.3 Warehouse facilities7,971 6.36 %0.2 Convertible senior notes (1)260,591 6.25 %0.8 Total$10,942,563 4.99 %0.4 

(dollars in thousands)March 31, 2025Collateral TypeAmount OutstandingWeighted Average Borrowing RateWeighted Average Haircut on Collateral ValueAgency RMBS$8,954,154 4.50 %3.6 %Non-Agency securities195 5.01 %44.2 %Agency Derivatives16,481 4.79 %15.6 %Mortgage servicing rights1,599,871 7.45 %30.4 %Mortgage servicing advances103,300 6.99 %13.1 %Mortgage loans held-for-sale7,971 6.36 %— %Other (1)260,591 6.25 %N/ATotal$10,942,563 4.99 %7.5 %

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(1)Includes unsecured convertible senior notes due January 2026 paying interest semiannually at a rate of 6.25% per annum on the aggregate principal amount, which was $261.9 million on March 31, 2025.

As of March 31, 2025, the debt-to-equity ratio funding our Agency and non-Agency investment securities, MSR and related servicing advances and mortgage loans held-for-sale, which includes unsecured borrowings under convertible senior notes, was 5.1:1.0. Our Agency RMBS, given their liquidity and high credit quality, are eligible for higher levels of leverage, while MSR, with less liquidity and/or more exposure to prepayment risk, utilize lower levels of leverage. Generally, our debt-to-equity ratio is directly correlated to the composition of our portfolio; typically, the higher the percentage of Agency RMBS we hold, the higher our debt-to-equity ratio will be. However, in addition to portfolio mix, our debt-to-equity ratio is a function of many other factors, including the liquidity of our portfolio, the availability and price of our financing, the diversification of our counterparties and their available capacity to finance our assets, and anticipated regulatory developments. We may alter the percentage allocation of our portfolio among our target assets depending on the relative value of the assets that are available