Invesco Mortgage Capital Inc (NYSE: IVR) is a real estate investment trust (REIT) that invests in mortgage-backed securities and mortgage loans. It earns income from the net interest spread between yields on its MBS portfolio and the cost of borrowings, primarily through repurchase agreements and other secured and unsecured financing. The strategy is leverage-dependent: IVR borrows against the market value of its assets to acquire Agency and non-Agency residential MBS (RMBS) and commercial MBS (CMBS), including subordinated tranches that carry first-loss or second-loss exposure. IVR competes with other REITs and institutional investors for the same target assets, some of which operate with lower cost of funds and without REIT tax compliance constraints. Third-party mortgage servicers collect principal and interest on the underlying loans, making IVR operationally dependent on external service providers. The company is externally managed by an affiliate of Invesco Ltd.

Revenue model

Net interest income from the spread between MBS portfolio yields and borrowing costs on repurchase agreements and other secured and unsecured debt. Leverage is applied against the market value of assets to amplify returns.

Products and services

Agency RMBS, non-Agency RMBS, non-Agency CMBS (including subordinated and first-loss tranches), and mortgage loans held directly.

Customers and end markets

Institutional capital markets. End market demand is driven by residential and commercial mortgage loan origination volume, which is sensitive to prevailing interest rates.

Value-chain role

Mortgage-backed securities investor and capital provider. Relies on third-party mortgage servicers for loan servicing and collections on underlying collateral.

Competitors

Other REITs investing in mortgage-backed securities, Institutional investors in Agency and non-Agency MBS

Source: SEC 10-K, filed 2026-02-23

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