Description
This is a short dated bond idea in an unloved space – mortgage REITs.
MFA Financial is an internally-managed REIT invested in residential mortgage loans and securities. The pitch here is for the 6.25% convertible bonds due 6/15/24. At a price of 92, these bonds yield 12.4% (+776bps) for <1.5 year paper. Recourse financing is $3.5 billion, or net debt of $3.0 billion. Behind the bonds are preferreds (at face) and equity market capitalization summing to $1.55 billion. See capital structure below. The way I look at it is recourse debt as a percentage of EV is 66% and this is further cushioned by loan LTVs of <60%.
The assets are split into several buckets. The residential whole loans include purchased performing and credit deteriorated loans and purchased non-performing loans. Besides this, the company holds REOs, residential mortgage securities, mortgage servicing assets, cash and participations in securitization trusts.
Here’s a chart which breaks down the loan by type and shows the margin of safety due to sound underwriting (LTV + FICO scores) and home price appreciation.
![](data:image/png;base64,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)
The non-QM loans are 96% current and are heavily weighted towards California (58%) and Florida (14%). New business purpose loans (single-family and fix-and-flip) are produced by Lima One, an originator and servicer acquired 18 months ago by MFA. This has resulted in improvements in delinquencies and allows MFA to create loans well-below the cost to purchase. This funded $520 million of new originations in 3Q (LTVs of 67% and FICOs of 743) and an estimated low $400s in 4Q.
The legacy non-performing and re-performing loans are split between 39% performing (i.e. less than 60 days delinquent), 47% in liquidation/REP and 14% non-performing (i.e. >60 days delinquent).
Due to fixed rate debt and swaps, 99% of financing is effectively fixed rate. Loan financing is roughly 1/3 non-MTM and 2/3 MTM. The company continues to access the securitization market with nine transactions ytd and >$2.7 billion of UPB ($3 billion over the last 12 months) across various loan types. This market continues to be open to the company with ROEs of low double digits.
Here’s the capital structure ex securitized debt.
As mentioned already, total assets consist of loans, securities, MSRs and cash. As a creditor I like to focus on the balance sheet.
Here’s my breakdown of the various assets.
![](data:image/png;base64,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)
The book value of participations in securitizations adds another $650 million+.
I’m less concerned with net interest margin and consensus numbers because this paper is so short-dated. The next question one might ask is what about interest rate exposure. Since 9/30, the 10yr is roughly flat. Previously, since MFA lends long and borrows short, management entered into swaps ($3.2 billion notional) to cushion any interest rate increases. Per the “shock table” in the 10Q, a 100 bps increase in rates would result in manageable losses of $109 million.
The short writeup is partially a function of the short-dated converts being an easier investment than the stock. The shares trade well below book value of ~$15.31 due to the aforementioned concerns over higher interest rates. Unfortunately, the company wasted capital on poorly timed share repurchases (>$100 million) as they evidently believed the stock was cheap at far higher levels.
Per the 3Q call, the share repurchases appear mostly completed. By design, the $434 million cash on hand provides a good liquidity buffer. The low LTV portfolio along with housing price appreciation provides a mitigant to potential losses. With the maturity of the converts approaching, my sense is management could repurchase bonds in the open market and/or look to refinance the paper before 2H 2023 when it goes current on the balance sheet. The relatively small size of the convert helps too. Besides cash, the agency paper offers a source of liquidity should the company need it. Additionally, management could let the book run off a bit to generate excess cash to handle the maturity.
In any event, I think the converts yielding 12% are an attractive investment with limited duration and credit risk.
I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise do not hold a material investment in the issuer's securities.
Catalyst
Open market repurchases
Time