Invesco Mortgage Capital (IVR) is a mortgage REIT that invests exclusively in agency mortgage-backed securities — residential (Agency RMBS) and commercial (Agency CMBS) — issued or guaranteed by U.S. government agencies or GSEs like Fannie Mae and Freddie Mac. IVR does not originate mortgages; it is purely an investment vehicle. IVR is externally managed by Invesco Advisers and has no employees of its own. IVR earns a spread between the yield on its securities portfolio and the cost of financing those securities through short-term repurchase agreements (repo), amplified by leverage that typically runs around 6.5x–7x debt-to-equity. The portfolio was approximately $6.3B at year-end 2025, with Agency RMBS making up the bulk and Agency CMBS at roughly 14–17% as a diversifier. Agency CMBS offers inherent prepayment protection but lower levered returns than Agency RMBS. IVR hedges interest rate risk through swaps and Treasury futures. Key earnings drivers include MBS spreads, yield curve shape, interest rate volatility, and prepayment behavior. IVR favors "specified pools" with prepayment protection characteristics to manage refinancing risk. IVR raises equity selectively through an at-the-market program, and has been redeeming higher-cost preferred stock to reduce its overall cost of capital. As a REIT, IVR must distribute at least 90% of taxable income to shareholders annually.