Question-and-Answer Session
Operator
(Operator Instructions) Your first call comes from Andrew Wessel - JP Morgan
Andrew Wessel - JP Morgan
Couple questions on the strategy going forward. Obviously, you've added a lot of equity to the non-agency strategy in the last couple quarters. Do you have a target for where you expect that to go longer term given the current opportunities you're seeing?
Stewart Zimmerman
Andrew, we don't have an absolute number. There is no magic numbers to say that we're going to be at a particular. Again, as I said I think in my opening remarks, the bulk of our assets will continue to be agency, high quality agencies. And, again, we do look for this portion of the portfolio certainly that we're going to continue to buy because it doesn't make one heck of a lot of sense to buy agencies at 5 and 6 point premium and load up on very, very low coupon.
So that's not part of our strategy now. We still like the agency market. We still think there's going to be incredible value in the agency market, but not quite now. So we think a little bit of this credit area certainly makes sense for us and its proving to be very, very positive.
Andrew Wessel - JP Morgan
Given the projected returns you're seeing in that asset class and the possibility of buying leverage going forward at some point, and then countering that with all the other of these mortgage REITs that are coming out that are on file right now kind of targeting similar parts of the non-agency market. What are your thoughts on raising capital here or on the potential for MFResidential to be spun out at some point on its own?
Stewart Zimmerman
Let's take the second part first. We always like to have optionality. Whether or not MFResidential would have got spun off or not, that's something that could happen but it's not necessarily in the plans in the immediate future and that's why we've done everything through MFA. So, I think our strategy has proven to be good.
In terms of other folks coming into the market, that's fine. Basically, when we look at our mark-to-market on what we've purchased, and that's going back to the latter part of last year, what we own is kind of golden and we are very comfortable about what we've paid. I think our average purchase price, if you look in the press release, is about 51% of par. So, we're very, very pleased with that.
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