Company: RITM-PC
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001556593-25-000033
Chunk: 394

Company: Rithm Capital Corp.
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 394
---
 and government-backed securities consist of Agency RMBS and U.S. Treasury securities. 

The following table summarizes our Agency RMBS and U.S. Treasury securities portfolio as of and for the nine months ended September 30, 2025 (dollars in thousands):

Gross UnrealizedAsset TypeOutstanding Face AmountAmortized Cost BasisGainsLossesCarryingValue(A)CountWeighted Average Life (Years)3-Month CPR(B)Outstanding Repurchase AgreementsAgency RMBS$8,560,928 $8,371,898 $171,501 $(5,364)$8,538,035 32 7.87.6 %$7,794,765 Treasury securities25,000 24,790 — — 24,790 1 0.2N/A— Total / Weighted Average$8,585,928 $8,396,688 $171,501 $(5,364)$8,562,825 33 7.8$7,794,765 

(A)Agency RMBS are held at fair value under the fair value option election. Treasury securities include $24.8 million of short-term Treasury bills held-to-maturity at amortized cost.

(B)Represents the annualized rate of the prepayments during the quarter as a percentage of the total amortized cost basis.

The following table summarizes the net interest spread of our government and government-backed securities portfolio as of September 30, 2025:

Net Interest Spread(A)Weighted average asset yield5.0 %Weighted average funding cost4.4 %Net Interest Spread0.6 %

(A)The government and government-backed securities portfolio consists of 100% fixed-rate securities.

96 

We largely invest in government and government-backed securities (U.S. Treasury securities and Agency RMBS) as a hedge to our MSR portfolio and to provide additional qualifying assets and income for the purposes of meeting the REIT requirements. Our government and government-backed securities portfolio was $8.6 billion as of September 30, 2025. We finance investments in these securities with short-term borrowings under master uncommitted repurchase agreements. These borrowings generally bear interest rates offered by the counterparty for the term of the proposed repurchase transaction (e.g., 30 days, 60 days, etc.) of a specified margin over SOFR. As of September 30, 2025 and December 31, 202