New York Mortgage Trust stages consent solicitation

New York Mortgage Trust is staging a consent solicitation to support its latest move into what it considers the right mix and amount of less credit-sensitive assets and higher yielding ones.

The company is asking for certain bond investors’ permission to exceed a maximum 8-to-1 debt-to-equity ratio it’s contractually obligated to ensure it meets on the last day of each fiscal quarter, which follows other efforts it has engaged in to raise funds for new investment.

NYMT’s strategy highlights its growing interest in finding a way to use debt to fund investment that manages potential risks in residential mortgage-backed securities while finding ways to generate strong returns.

“The company has significantly increased investment activity, targeting assets that are less sensitive to credit…