v3.26.1
Related party transactions (Tables)
 6 Months Ended
Jun. 30, 2026
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
The below table details the management fees incurred during the three and six months ended June 30, 2026 and 2025 (in thousands).
Three Months Ended
Six Months Ended
Consolidated statements of operations line item:June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Management fee to affiliate$2,311 $2,301 $4,630 $4,628 
The below table details the expense reimbursement incurred during the three and six months ended June 30, 2026 and 2025 (in thousands).
Three Months Ended
Six Months Ended
Consolidated statements of operations line item:June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Non-investment related expenses
$1,183 $1,304 $2,629 $3,143 
Investment related expenses
216 95 358 295 
Transaction related expenses73109148 369 
Expense reimbursements to Manager or its affiliates$1,472 $1,508 $3,135 $3,807 
The below details the fees paid by the Company to the Asset Manager during the three and six months ended June 30, 2026 and 2025 (in thousands).
Three Months Ended
Six Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Fees paid to Asset Manager$527 $533 $1,077 $1,173 
The below table details the unpaid principal balance of residential mortgage loans sold to the Company during the three and six months ended June 30, 2026 and 2025 (in thousands).
Three Months Ended
Six Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Residential mortgage loans sold by Arc Home to the Company$— $— $475 $60,957 
The below table details transactions where the Company purchased or sold assets from or to an affiliate of the Manager ($ in millions). The transactions were executed in accordance with the Company's Affiliated Transaction Policy. Refer to the "Transactions with Arc Home" section above for additional information related to transactions with Arc Home, which are excluded from the table below.

DateTransactionFair Value (1)Pricing Methodology
June 2025Purchase of Re/Non-Performing Securities (2)$0.1 Third party pricing vendors (3)
August 2025Purchase of AG Arc (4) (5)15.7 Third party pricing vendors (3)
(1)As of the transaction date.
(2)The Company purchased an additional interest in certain re/non-performing securities which are recorded within the “Investments in debt and equity of affiliates” line item on the consolidated balance sheets.
(3)Pricing was based on valuations prepared by third-party pricing vendors in accordance with the Company's policy.
(4)The Company’s Board of Directors, including its independent directors, approved the transaction and obtained a fairness opinion from a third party financial advisor.
(5)Refer to “Investments in debt and equity of affiliates - Arc Home” above for additional information on this transaction.
The below provides detail on these securitizations ($ in millions).
DateCollateral TypeUnpaid Principal BalanceFair Value of Retained Non-Agency RMBS
April 2026Non-QM Loans$429.6 $21.2 
May 2026Non-QM Loans333.4 16.5 
Schedule of Investments in Debt and Equity of Affiliates
The below table summarizes the components of the "Investments in debt and equity of affiliates" line item on the Company's consolidated balance sheets as of June 30, 2026 and December 31, 2025 (in thousands).

June 30, 2026December 31, 2025
AssetsLiabilitiesEquityAssetsLiabilitiesEquity
Non-QM Securities (1)$7,828 $— $7,828 $9,439 $— $9,439 
Re/Non-Performing Securities517 — 517 599 — 599 
Total Residential Investments8,345 — 8,345 10,038 — 10,038 
AG Arc, at fair value (2)46,435 — 46,435 50,016 — 50,016 
Cash and Other assets/(liabilities)242 (17)225 1,291 (12)1,279 
Investments in debt and equity of affiliates$55,022 $(17)$55,005 $61,345 $(12)$61,333 
(1)As of June 30, 2026 and December 31, 2025, MATH, through its wholly owned subsidiary MATT, only holds risk-retention tranches from past securitizations which continue to pay down and the Company does not expect MATT to acquire additional investments.
(2)During the three months ended June 30, 2026, AG Arc distributed $10.0 million to the Company and private funds managed by TPG or its affiliates, of which the Company received $6.6 million representing its interest of approximately 66.0% in AG Arc.

The below table reconciles the net income/(loss) to the "Equity in earnings/(loss) from affiliates" line item on the Company's consolidated statements of operations for the three and six months ended June 30, 2026 and 2025 (in thousands).

Three Months Ended
Six Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Non-QM Securities$(444)$268 $(718)$197 
Re/Non-Performing Securities(2)— (40)(120)
AG Arc (1)(2)715 (37)3,027 1,339 
Equity in earnings/(loss) from affiliates
$269 $231 $2,269 $1,416 
(1)Earnings/(loss) recognized by AG Arc do not include the Company's portion of gains or losses recorded by Arc Home in connection with the sale of residential mortgage loans to the Company. Refer to "Transactions with Arc Home" below for more information on this accounting policy.
(2)As of June 30, 2026 and 2025, the Company had an approximate 66.0% and 44.6% interest in AG Arc, respectively.
The table below summarizes intra-entity profits eliminated during the three and six months ended June 30, 2026 and 2025 (in thousands).
Three Months Ended
Six Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Intra-Entity Profits Eliminated$— $— $6 $88