**Armour Signals Constructive MBS Outlook Amid Fed Easing and 7.75% Economic Return**
*October 23, 2025 — 10:11 AM ET*
**ARMOUR Residential REIT, Inc. (ARR) Stock Update**
ARMOUR Residential REIT (ARR) recently shared its Q3 2025 performance results and provided insights into its outlook amid shifting macroeconomic conditions.
**Earnings Call Highlights**
CEO Scott Ulm addressed the third quarter’s performance against the backdrop of changing economic indicators. He noted that downward revisions to employment data prompted the Federal Reserve to resume its easing stance. This shift is viewed positively by ARMOUR’s management team.
**Management’s Outlook**
Management expects further Federal Reserve easing to be supportive for Agency Mortgage-Backed Securities (MBS). As a result, the company is maintaining a portfolio bias towards these securities and implementing dynamic hedging strategies to align with evolving macroeconomic trends.
Key strategic points include:
– A focus on Agency MBS within the portfolio.
– Maintaining leverage levels near 8x.
– Utilizing hedging primarily through Overnight Index Swaps (OIS) and Secured Overnight Financing Rate (SOFR) pay-fixed swaps.
– Prioritizing investments in par to premium coupon mortgages.
These strategies aim to achieve expected hedged Returns on Equity (ROEs) of 16-18%.
**Dividend Stability**
Management reaffirmed confidence in dividend stability, emphasizing that the current dividend level remains appropriate given the current market environment. This confidence is supported by recent strong financial results and robust portfolio construction.
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**Disclaimer**
The above insights are generated from ARMOUR Residential REIT’s earnings call transcript and other publicly available content, compiled with AI support. While care is taken to ensure accuracy, completeness and timeliness cannot be guaranteed. This content is for informational purposes only and does not constitute personalized investment advice. Seek professional financial guidance before making investment decisions.
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**Related Stocks**
– ARR
– ARR.PR.C
For more trending news and updates on ARMOUR Residential REIT and related securities, stay tuned.
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