MFA Financial expects mid-to-high teens ROE on new investments
MFA•MFA Financial expects returns on equity for new investments in the mid-to-high teens, while distributable earnings before realized credit losses rose to $0.44 per share, above its $0.36 common dividend.
1. Expected investment returns
MFA Financial expects returns on equity for new investments in the mid-to-high teens, supported by higher rates and wider spreads. Treasury yields rose 70-85 basis points in the third quarter of 2026, while the mortgage basis widened 20 basis points.
2. Earnings and portfolio
Agency mortgage-backed securities also carry expected leveraged returns in the mid-to-high teens and represent more than 30% of the investment portfolio. Distributable earnings before realized credit losses rose to $0.44 per share, exceeding the $0.36 common dividend.
