In terms of buybacks, I think depending on where we are on the stock price, we obviously have good liquidity to continue buying back stock accretively. I think we are conscious of just looking at our volumes and the liquidity in the stock and don’t want to perversely do something damaging over the long-term by reducing investor liquidity.
Mike Smith: Maybe just kind of on that one on the discount of book, appetite for some type of strategic transaction, whether it be rolling it back into the parent company or merging with a smaller company for some scale and operating leverage. We were kind of just be curious to hear your thoughts on how you’re thinking about that given the discount to book?
T.J. Durkin: This I think holistically we think the company is in a very good position, financially from the balance sheets perspective from a leverage perspective. I think we’re always looking for opportunities to grow responsibly. And to the extent the right opportunity came to MITT. I think the manager would be supportive and helping grow MITT with its kind of financial support to the extent the opportunity was compelling.
Mike Smith: Great. Thanks for taking my question.
Operator: Our next question will come from Eric Hagenwith BTIG. Your line is open.
Eric Hagen: Couple questions for me. Can you talk a little bit about the warehouse funding for loans right now? Just how the environment is how readily available that source of funding is? Maybe even what the cost of funds looks like on a new warehouse line today? Even how many counterparties you currently have providing you warehouse funding on the back book? Thanks.
Anthony Rossiello: So maybe address it on the loan side, first. The availability of financing for loans is still far out strips sort of what we need. I think if you think, no warehouse lenders lost money and obviously very volatile year last year and given the short duration of the asset, it’s very desirable lend. I think, we also given sort of the broader pullback in the residential mortgage market. Guys, agency volumes, they’re at decade, multi-decade loan, as well as on certain balances they have out. So, they’re very axed to put on what they can. So, we’ve not seen our cost of financing go up, if anything, I think, it’ll stay the same or get lower, we’ve also not seen advanced rates decrease or given the amount of folk’s sort of looking to still enter this space or grow their warehouse positions for non-agencies.
We expect that to be the same. Similar dynamic on the securities, although, there’s always a little bit less liquidity for, down the stack and securities. But as you go up the stack, it’s fairly comparable to loan liquidity. From the counterparty standpoint, we currently have five. Realistically, that’s more than we need, but we’re not looking to actually trim in and we’re always opportunistically can add.
Eric Hagen: That’s helpful details. Maybe just one more I mean, can you can you say how big of a margin call you sort of modeled for on the retained bonds from securitization, which are funded with repo? And just how you guys think about the approach to cushioning with liquidity?
Nick Smith: Yeah. I mean, I think, generally speaking, we work with our risk department independently. And I mean, the simple answer is I think we’re looking at sort of a March 2020 COVID shock in terms of like credit spreads. And it’s a recent enough event that I think that’s the right shock to look at and having enough cash to meet that kind of a margin call.
