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Financing (Tables)
 9 Months Ended
Sep. 30, 2024
Disclosure of Repurchase Agreements [Abstract]  
Schedule of Financing Arrangements
The following table presents a summary of the Company's financing as of September 30, 2024 and December 31, 2023 ($ in thousands).
September 30, 2024
December 31, 2023
FinancingWeighted AverageCollateral Fair Value (1)(2)Financing
Current FaceCarrying ValueStated MaturityFunding CostLife (Years)Carrying Value
Financing Arrangements by Asset Type
Securitized Residential Mortgage Loans (3)
Non-Agency Loans (4)$363,428 $364,626 Oct 2024 - July 20256.92 %0.22$661,456 $301,205 
Re- and Non-Performing Loans42,688 42,688 Oct 20247.00 %0.0566,338 44,928 
Residential Mortgage Loans (5)
Agency-Eligible Loans103,745 103,745 June 2025 - July 20256.70 %0.82112,821 200,617 
Home Equity Loans (4)114,475 114,475 June 20257.20 %0.68136,854 — 
Non-Agency Loans7,674 7,674 Jan 2025 - June 20256.97 %0.339,877 77,345 
Legacy WMC Commercial Loans (4)47,222 47,222 Mar 20258.13 %0.4866,875 48,032 
Non-Agency RMBS86,615 86,615 Oct 2024 - May 20255.92 %0.08120,088 51,251 
Legacy WMC CMBS 20,313 20,313 Oct 20246.88 %0.0352,018 31,620 
Agency RMBS2,141 2,141 Oct 20245.56 %0.053,064 12,594 
Total Financing Arrangements$788,301 $789,499 6.89 %0.36$1,229,391 $767,592 
Securitized debt, at fair value (6) (7)
Non-Agency Loans (8) (9)$5,634,967 $5,391,483 N/A5.15 %6.47N/A$4,597,490 
Re- and Non-Performing Loans (10)114,470 106,069 N/A3.32 %3.67N/A114,133 
Total Securitized Debt$5,749,437 $5,497,552 5.11 %6.42N/A$4,711,623 
Legacy WMC Convertible Notes$— $— N/AN/AN/AN/A$85,266 
Senior Unsecured Notes
February 2029 Senior Unsecured Notes$34,500 $32,958 Feb 202910.79 %4.48N/A$— 
May 2029 Senior Unsecured Notes65,000 62,590 May 202910.52 %4.73N/A— 
Total Senior Unsecured Notes$99,500 $95,548 10.61 %4.64N/A$— 
Total Financing$6,637,238 $6,382,599 5.41 %5.80$1,229,391 $5,564,481 
(1)The Company also had $3.3 million and $1.7 million of cash pledged under repurchase agreements as of September 30, 2024 and December 31, 2023, respectively.
(2)Under the terms of the Company’s financing agreements, the Company's financing counterparties may, in certain cases, sell or re-hypothecate the pledged collateral.
(3)Amounts pledged as collateral under Securitized residential mortgage loans include certain of the Company's retained interests in securitizations. Refer to Note 3 for more information on the Non-Agency VIEs and RPL/NPL VIEs.
(4)As of September 30, 2024, the weighted average stated rate on the financing arrangements on the Company's Securitized Non-Agency Loans, Home Equity Loans, and Legacy WMC Commercial Loans was 7.35%, 7.09%, and 7.76%, respectively.
(5)The Company's Residential mortgage loan financing arrangements include a maximum uncommitted borrowing capacity of $1.8 billion on facilities used to finance Non-Agency and Agency-Eligible Loans.
(6)The holders of the securitized debt have no recourse to the general credit of the Company. The Company has no obligation to provide any other explicit or implicit support to the Non-Agency VIEs and RPL/NPL VIEs.
(7)As of September 30, 2024, the weighted average funding costs are presented based on the amortized cost of the underlying securities. As of December 31, 2023, the weighted average funding costs are presented based on the fair value of the underlying securities. The weighted average funding cost of the Company's securitized debt based on the fair value of the underlying securities as of September 30, 2024 was 5.21%.
(8)As of September 30, 2024, the amortized cost of Securitized debt in the Company's Non-Agency VIEs was $5.5 billion.
(9)The current face on the Company's Securitized debt in the Company's Non-Agency VIEs excludes Interest Only classes which have no principal balances and bear interest based on a notional value. The notional value is used solely to determine interest distributions on the interest only classes of securities. As of September 30, 2024, the notional value of interest only classes of Securitized debt was $1.3 billion.
(10)As of September 30, 2024, the amortized cost of Securitized debt in the Company's RPL/NPL VIEs was $112.7 million.
Summary of Convertible Notes Interest Expense
The below table details the total interest expense incurred on the Legacy WMC Convertible Notes during the three and nine months ended September 30, 2024 (in thousands). There was no interest expense incurred during the three and nine months ended September 30, 2023 as the Company assumed the Legacy WMC Convertible Notes in connection with the Merger in December 2023.
September 30, 2024
Three Months Ended
Nine Months Ended
Coupon interest expense
$1,097 $3,805 
Amortization expense
271 912 
Total interest expense$1,368 $4,717 
Summary of Senior Unsecured Notes The below table provides a summary of the Senior Unsecured Notes as of September 30, 2024 ($ in thousands).
Principal Amount (1)Carrying ValueFirst Pay DateMaturity
Date (2)		Redemption Date (3)Rate (4)
February 2029 Senior Unsecured Notes
$34,500 $32,958 May 15, 2024February 15, 2029February 15, 20269.500 %
May 2029 Senior Unsecured Notes
65,000 62,590 August 15, 2024May 15, 2029May 15, 20269.500 %
(1)The Senior Unsecured Notes were issued at 100% of the principal amount.
(2)The Company has the option to redeem the Senior Unsecured Notes earlier than the maturity date.
(3)The Company may redeem the Senior Unsecured Notes in whole or in part at any time or from time to time at the Company’s option on or after the redemption date, upon not less than 30 days written notice to holders prior to the redemption date, at a redemption price equal to 100% of the outstanding principal amount of the Senior Unsecured Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date.
(4)The Senior Unsecured Notes bear interest at a rate equal to 9.500% per year, payable in cash quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, beginning on the applicable first pay date.

The below table details the total interest expense incurred on the Senior Unsecured Notes during the three and nine months ended September 30, 2024 (in thousands). There was no interest expense incurred during the three or nine months ended September 30, 2023 as the Senior Unsecured Notes were issued during 2024.
September 30, 2024
Three Months Ended
Nine Months Ended
Coupon interest expense
$2,363 $4,563 
Amortization expense
168 332 
Total interest expense$2,531 $4,895 
Schedule of Total Borrowings Under Repurchase Agreements
The following table allocates the current face of the Company's borrowings under financing arrangements, the Legacy WMC Convertible Notes, and Senior Unsecured Notes as of September 30, 2024 by contractual maturity (in thousands). Securitized debt is excluded from the below table as it does not have a contractual maturity.
Within 30 DaysOver 30 Days to 3 MonthsOver 3 Months to 12 MonthsOver 12 MonthsTotal
Financing Arrangements by Asset Type
Securitized Residential Mortgage Loans
Non-Agency Loans$251,706 $26,642 $85,080 $— $363,428 
Re- and Non-Performing Loans42,688 — — — 42,688 
Residential Mortgage Loans
Agency-Eligible Loans— — 103,745 — 103,745 
Home Equity Loans— — 114,475 — 114,475 
Non-Agency Loans— — 7,674 — 7,674 
Legacy WMC Commercial Loans— — 47,222 — 47,222 
Non-Agency RMBS69,810 14,199 2,606 — 86,615 
Legacy WMC CMBS20,313 — — — 20,313 
Agency RMBS2,141 — — — 2,141 
Total Financing Arrangements$386,658 $40,841 $360,802 $— $788,301 
Senior Unsecured Notes
February 2029 Senior Unsecured Notes$— $— $— $34,500 $34,500 
May 2029 Senior Unsecured Notes— — — 65,000 65,000 
Total Senior Unsecured Notes$— $— $— $99,500 $99,500 
Schedule of Repurchase Agreement Counterparty
The following table presents information as of September 30, 2024 and December 31, 2023 with respect to each counterparty that provides the Company with financing for which the Company had greater than 5% of its stockholders’ equity at risk, excluding stockholders’ equity at risk under financing through affiliated entities ($ in thousands).

September 30, 2024
December 31, 2023
CounterpartyStockholders' Equity
at Risk		Weighted Average
Maturity (days)		Percentage of
Stockholders' Equity		Stockholders' Equity
at Risk		Weighted Average
Maturity (days)		Percentage of
Stockholders' Equity
BofA Securities, Inc.$153,316 11828.4 %$131,128 23624.8 %
Goldman Sachs Bank USA103,409 15719.1 %73,893 914.0 %
Barclays Capital Inc.79,274 2614.7 %81,047 8515.3 %
JP Morgan Securities, LLC(1)(1)(1)46,642 1348.8 %
Various (2)75,156 30313.9 %69,637 57713.2 %
(1)As of September 30, 2024, the Company had less than 5% of its equity at risk under financing arrangements with JP Morgan Securities, LLC.
(2)Certain retained interests in securitizations are held in WMC RR 2023-1 Trust, a wholly owned subsidiary of the Company. WMC RR 2023-1 Trust issued certificates which were sold to various third-party investors.