Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Rick Shane with Jefferies & Company.
Rick Shane – Jefferies & Company
Hi, guys. In terms of – strategy has varied over times in terms of what types of asset gathering opportunity you guys would go after. Right now, where do you see the best opportunity? What’s the most interesting to you?
Ken Riis
Right now in terms of relative value, I think that the residential market and debt securities offer very good value I know. And in the quarter we did purchase some residential assets that are highly rated, AA+ on average, at very high returns. And currently today I would say that the residential senior bonds, AAA or AA rated, offer the best relative value. So –
Rick Shane – Jefferies & Company
Are those investment grade securities backed by prime mortgages, Alt-A mortgages, subprime mortgages? And if you could give us some sense of sort of what the credit enhancement underneath those? And again, I don’t think AAA per se means AAA any more, but if you could give us some sense as to what types of credit enhancement levels you are getting, what sort of discounts you are paying so we can get a sort of cash-on-cash kneeled [ph] to maturity and also some sense of how much credit you could absorb and still hit those thresholds?
Ken Riis
Well, I can give you an example of what we purchased in the second quarter. They were eight different securities backed by subprime and option ARM collateral. We invested $39 million, and the average dollar price was $0.61. The average rating was AA+, as I mentioned. And the average credit support I think was around 25%.
Rick Shane – Jefferies & Company
And that’s with the existing losses in the pools or was that inception?
Ken Riis
Yes, that was at the current subordination level is.
Rick Shane – Jefferies & Company
Okay, great. Perfect. We’ll sit and run the math, and we appreciate the help. Thank you, guys.
Ken Riis
Okay.
Operator
Our next question comes from the line of David Fick with Stifel Nicolaus.
David Fick – Stifel Nicolaus
Good morning. Can you walk us through what currently composes your bank loan portfolio, your loan portfolio and your corporate loan portfolio? What charges were there?
Ken Riis
All you want to know is the impairment charges?
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