Here are 1-3 brief analogies for Invesco Mortgage Capital (IVR):

• It's like a Fidelity or Vanguard mutual fund that exclusively invests in mortgage-backed securities, rather than a broad portfolio of stocks or bonds.
• It's a Real Estate Investment Trust (REIT), but instead of owning physical buildings like Simon Property Group (malls) or Prologis (warehouses), it owns the mortgage debt on those buildings.
• Think of it as a specialized finance arm of a big bank like JPMorgan Chase, but entirely focused on buying and managing large pools of mortgage loans rather than originating them or offering consumer banking services.

• Agency Mortgage-Backed Securities (MBS): Investments in residential and commercial mortgage-backed securities guaranteed by a U.S. government agency or federally chartered corporation.
• Non-Agency Mortgage-Backed Securities (MBS): Investments in residential and commercial mortgage-backed securities that are not guaranteed by a U.S. government agency or federally chartered corporation.
• Credit Risk Transfer Securities (CRT Securities): Investments in unsecured obligations issued by government-sponsored enterprises.
• Mortgage Loans: Investments in both residential and commercial mortgage loans.
• Real Estate-Related Financing Arrangements: Engagement in other financing activities tied to real estate.

Invesco Mortgage Capital (IVR) operates as a real estate investment trust (REIT) that primarily focuses on investing in, financing, and managing mortgage-backed securities and other mortgage-related assets. Based on the company's description, its business model involves generating income from the interest and returns on its portfolio. While IVR is an investor in mortgage-backed securities, it also explicitly engages in the financing of residential and commercial mortgage loans, as well as other real estate-related financing arrangements.

Therefore, the major customers of Invesco Mortgage Capital are the entities that receive these financing arrangements. Since specific names of customer companies or individuals are not provided in the description, these customers can be categorized as follows:

• Individuals: These customers are typically homeowners who receive or are the underlying borrowers of residential mortgage loans financed or held by Invesco Mortgage Capital.
• Commercial Entities: This category includes businesses, real estate developers, and other organizations that receive commercial mortgage loans and other real estate-related financing arrangements from Invesco Mortgage Capital for various property acquisition, development, or refinancing needs.

• Fannie Mae (FNMA)
• Freddie Mac (FMCC)
• JPMorgan Chase & Co. (JPM)
• Bank of America Corporation (BAC)
• Citigroup Inc. (C)
• Goldman Sachs Group, Inc. (GS)
• Wells Fargo & Company (WFC)

John Anzalone, Chief Executive Officer

Mr. Anzalone has served as Chief Executive Officer of Invesco Mortgage Capital Inc. since March 2017. Prior to this, he was the Chief Investment Officer since the company's inception in June 2009. He joined Invesco's Fixed Income Division in 2002, where he serves as a Senior Portfolio Manager and Head of Structured Securities Management. His investment career began in 1992 at Union Trust, and he subsequently worked at AgriBank, FCB, and Advantus Capital Management as a Senior Trader.

Mark Gregson, Chief Financial Officer

Mr. Gregson was appointed Interim Chief Financial Officer, effective October 7 or 8, 2024. He has been with Invesco since 1995 and has served as the Global Controller for Invesco Ltd. since 2018. In this role, he oversees the company's corporate public financial reporting, Sarbanes-Oxley compliance and related controls, and accounting policy teams. He also acts as the Chief Financial Officer for Invesco's broker-dealers.

Kevin Collins, President

Mr. Collins has served as President of Invesco Mortgage Capital Inc. since October 2017. He joined Invesco in 2007 as a senior analyst on the structured securities team. Before his tenure at Invesco, he structured various capital funding strategies, including bond securitizations and secured lending facilities, for banks, Real Estate Investment Trusts (REITs), and other specialty finance companies during his time at Credit Suisse First Boston. He began his career in the structured finance advisory services practice at Ernst & Young.

Brian P. Norris, Chief Investment Officer

Mr. Norris has served as Chief Investment Officer since September 2018. He has been a member of the investment team since Invesco Mortgage Capital Inc.'s inception in 2009 and was appointed Director of Portfolio Management in February 2013. Mr. Norris joined Invesco Advisors Inc. in 2001, and his investment management career began in 1999 as a securities trader with Todd Investment Advisors.

David Lyle, Chief Operating Officer

Mr. Lyle has served as Chief Operating Officer since October 2017. Previously, he held positions as Executive Vice President of Residential Credit from March 2017 to October 2017 and Managing Director and Head of Residential Mortgage Credit from March 2011 to March 2017. Before joining Invesco in 2006, he was a Vice President in the Investment Banking ABS group at Friedman Billings Ramsey for three years.

Here are the key risks to Invesco Mortgage Capital (symbol: IVR):

1. Interest Rate Volatility: Invesco Mortgage Capital, as a mortgage REIT, is highly susceptible to fluctuations in interest rates. Changes in interest rates directly impact the cost of borrowing for the company, which can reduce the spread between the interest earned on its mortgage assets and the interest paid on its liabilities, thereby diminishing earnings and potentially dividend payouts. Rising rates can also decrease the value of existing mortgage-backed assets.

2. Credit Risk: The company faces credit risk, which is the possibility that borrowers may default on their mortgage loans. This risk is particularly pronounced for non-agency mortgage-backed securities and commercial mortgage-backed securities, which are not guaranteed by a U.S. government agency. Economic downturns or poor asset selection can exacerbate credit risk, directly affecting the income generated by the REIT.

3. Leverage and Liquidity Risk: Invesco Mortgage Capital utilizes significant leverage by borrowing capital, often at lower short-term rates, to invest in higher-yielding, longer-term mortgage assets. While leverage can amplify returns, it also magnifies risks. Market volatility, especially unexpected increases in interest rates, can lead to margin calls from lenders, which can strain the company's liquidity and potentially force it to sell assets at unfavorable times.

1. Strategic Focus on Agency RMBS and CMBS and Broadening Investor Demand: Invesco Mortgage Capital is maintaining a constructive stance on Agency Residential Mortgage-Backed Securities (RMBS) and Commercial Mortgage-Backed Securities (CMBS). This is attributed to favorable supply and demand technicals, reduced interest rate volatility, and attractive valuations within these markets. This strategic focus, combined with broadening investor demand and anticipated supportive regulatory changes, is expected to fuel the growth of the company's investment portfolio and enhance its net interest margin.

2. Favorable Interest Rate Environment and Steeper Yield Curve: A significant decline in interest rate volatility, alongside a steepening yield curve, is creating a more normalized and beneficial investment landscape. This environment is projected to generate attractive levered returns for the company's longer-term investments, particularly in Agency RMBS and CMBS. The Federal Reserve's rate cuts in late 2025 and the conclusion of its quantitative tightening program have further contributed to improved financial conditions, which are expected to lead to wider net interest margins and increased profitability.

3. Optimized Capital Structure and Increased Strategic Leverage: The company is strategically increasing its leverage, with its debt-to-equity ratio rising, to capitalize on the improved investment environment. Invesco Mortgage Capital is also actively managing its capital structure, including raising capital through common stock issuance via an At-The-Market (ATM) program. This approach allows for the expansion of its investment portfolio and positions the company to further benefit from positive Agency RMBS performance, thereby driving future revenue growth.

Capital Allocation Decisions for Invesco Mortgage Capital (IVR)

Share Repurchases

• In May 2022, Invesco Mortgage Capital's Board of Directors authorized a preferred stock repurchase program to repurchase up to three million shares of its Series B and five million shares of its Series C Cumulative Redeemable Preferred Stock.
• As of December 29, 2024, the company redeemed all outstanding shares of its 7.75% Fixed-to-Floating Series B Cumulative Redeemable Preferred Stock at $25.00 per share plus accrued dividends, funded through available company funds.
• During the fourth quarter of 2025, Invesco Mortgage Capital repurchased and retired 76,356 shares of Series C Preferred Stock, with a carrying value of $1.8 million.

Share Issuance

• On February 23, 2026, Invesco Mortgage Capital Inc. established a new equity distribution agreement to sell up to 40,000,000 shares of its common stock over time through various placement agents.
• During the fourth quarter of 2025, the company issued 849,987 shares of common stock, generating net cash proceeds of $7.2 million through its at-the-market (ATM) program.
• A shelf registration was filed on February 23, 2026, enabling the company to offer common stock, preferred stock, depositary shares, warrants, stockholder rights, debt securities, and units from time to time.

Inbound Investments

• On December 31, 2024, BlackRock, Inc. acquired an additional 280,556 shares of Invesco Mortgage Capital Inc. at a price of $8.05 per share, increasing its total holdings to 5,563,736 shares.

Outbound Investments

• Invesco Mortgage Capital primarily invests in, finances, and manages mortgage-backed securities (MBS) and other mortgage-related assets, including Agency Residential Mortgage-Backed Securities (RMBS) and Agency Commercial Mortgage-Backed Securities (CMBS).
• As of December 31, 2025, the company's total investment portfolio amounted to $6.3 billion, comprising $5.4 billion in Agency RMBS and $0.9 billion in Agency CMBS.
• The total investment portfolio, including TBAs (To-Be-Announced securities), was reported at $7.1 billion as of January 31, 2026, and $7.3 billion as of February 28, 2026.

Capital Expenditures

• As a mortgage real estate investment trust (REIT), Invesco Mortgage Capital's primary investments are in mortgage-backed securities and other financial assets, rather than traditional capital expenditures on physical property, plant, and equipment.