Invesco Mortgage Capital Revenue and Competitors

Our objective is to provide attractive risk adjusted returns to our investors over the long term, primarily through dividends and secondarily through capital appreciation. We achieve this objective by selectively acquiring assets to construct a diversified investment portfolio. This portfolio consists of: Residential mortgage-backed securities ("RMBS") for which a U.S. Government agency or a federally chartered corporation guarantees payment of principal and interest - commonly referred to as "Agency RMBS" RMBS that are not issued or guaranteed by a U.S. Government agency - commonly referred to as "Non-agency RMBS" Commercial mortgage-backed securities - commonly referred to as "CMBS" Mortgage loans We generate income principally from the difference, or net spread, between yields on our investments and our cost of borrowing. Leverage is employed to enhance these returns through the use of short-term borrowings