New York Mortgage Trust Announces $9 Million Investment in Cratos CLO I, Ltd. Mon. April 13, 2009; Posted: 06:57 PM NEW YORK, April 13, 2009 /PRNewswire-FirstCall via COMTEX/ -- | | | | -- New York Mortgage Trust, Inc. (the "Company") (Nasdaq: | | | | ) announced today the closing of its $9 million original investment in profoundly discounted notes issued by Cratos CLO I, Ltd. (the "CLO"), a collateralized advance obligation.
This marks the Company's start investment under its choice investment strategy. The CLO's portfolio consists of $467 million expected magnitude of older secured corporate loans extended to more than 75 many borrowers and is diversified by industry, geography and borrower classification. The Company's investment in the CLO was completed in interplay with the acquirement by JMP Group Inc., the Company's largest stockholder, of the CLO's investment adviser.
The Company's investment in the CLO was conducted through Hypotheca Capital, LLC, the Company's taxable REIT subsidiary. Hypotheca Capital maintains an approximately $64.0 million grid-work operating depletion carry-forward and the Company expects to utilize a ration of this end operating wasting finance out to restitution taxable proceeds generated by these assets. The Company's investment in these assets will be managed by Harvest Capital Strategies LLC, the investment advisor to Hypotheca Capital, LLC and a wholly-owned subsidiary of JMP Group Inc. Commenting on today's announcement, Steven R. Mumma, the Company's Chief Executive Officer, stated, "This is the oldest dealing in our in days gone by announced other investment design focused on Machiavellian investments in surrogate fiscal assets that we put faith are probable to breed drawing risk-adjusted returns and is agreeing with the sourcing relation contemplated by our relationship with JMP Group Inc. Based on the results of the good due diligence completed by the Company and JMP Group's property of the CLO's investment adviser, we feel that this investment will state engaging risk-adjusted returns for our selection investment portfolio and should consent to us to utilize a slice of our trellis-work operating forfeiture carry-forward.
" About New York Mortgage Trust New York Mortgage Trust, Inc. is a self-advised veritable stratum investment make (REIT) in the charge of investing in and managing a combined portfolio of Agency mortgage-backed securities (MBS), notify assign attribute residential adjustable measure mortgage (ARM) loans, non-agency mortgage-backed securities and trustworthy other option monetary assets. As a REIT, the Company is not humble to federal return tax, provided that it distributes at least 90% of its REIT takings to stockholders. Certain statements contained in this compress discharge may be deemed to be forward-looking statements that suggest or depict days events or trends. The matters described in these forward-looking statements are citizen to known and unidentified risks, uncertainties and other unpredictable factors, many of which are beyond the Company's control.
The Company faces many risks that could cause its true to life carrying out to take issue much from the results predicted by its forward-looking statements, including, without limitation, a swell in piece rates or a unfavorable variety in prepayment rates may cause a subside in the deal in value of the Company's assets, borrowings to economics the secure of assets may not be obtainable on favorable terms, the Company may not be able to make a stand for its caveat as a REIT for federal encumbrance purposes, the Company may be exposed to the risks associated with investing in mortgage loans, including changes in accommodation delinquencies, and the Company's hedging strategies may not be effective. The reports that the Company files with the Securities and Exchange Commission restrain a fuller character of these and many other risks to which the Company is subject. Because of those risks, the Company's existing results, dispatch or achievements may quarrel significantly from the results, accomplishment or achievements contemplated by its forward- looking statements. The data set forth in this statement free represents management's simultaneous expectations and intentions.
The Company assumes no answerability to daughter updates to the forward-looking matters discussed in this steam release. SOURCE New York Mortgage Trust, Inc. For well-proportioned details for JMP .
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