Does Two Harbors Investment Corp (NYSE:TWO) Hold Promise?


Dallas, Texas 03/12/2014 (FINANCIALSTRENDS) – Two Harbors Investment Corp (NYSE:TWO) is a New York-based real estate investment company. It has been investing in as well as financing several projects. The company is also engaged in managing residential as well as mortgage-backed securities, besides a range of residential mortgage segment as well. The focus for the company has been in selecting the security of the investment over the implementation of the value of the investment.

Two Harbors Investment Corp (NYSE:TWO) has adopted the investment approach, across several of its sectors. The many important ones in this range are the RMBS, Non-Agency RMBS as well as residential mortgage loans. Besides the residential real properties and the financial assets which are nearly 5 to 10 percent of the total portfolio are also under the scanner for the company. The subsidiaries for the company are included in the Taxable REIT section and the Capital Acquisition Corp. or Capitol which are the other two wholly owned yet indirect subsidiary units at Two Harbors. Besides, by May of 2013, the company had acquired another asset, through one of its subsidiaries, Pine River Capital Management L.P. and is hoping to see some quick financial movements across the board, with the consolidated assets.

Two Harbors Investment Corp (NYSE:TWO) is known investor in the mortgage certificates section as well. The collateral the company holds has been noted in the industry as has the widespread of residential securities which are backed by mortgages, with GSEs being the core of the investment for the company. The company will also see very high action on the sections as varied as United States Treasuries, trading instruments, cash, and restricted cash, besides a range of mortgage loans which are currently on sale-on-hold basis.

The high focus on the security issue in the real estate industry is expected to see solid earnings revision by the company.