| Capstead Mortgage Corporation (Capstead) operates as a self-managed real estate investment trust (REIT). Capstead earns income from investing in a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises, either Fannie Mae (Freddie Mac), or by an agency of the federal government, Government National Mortgage Association (Ginnie Mae).The Company's holdings of residential mortgage securities are classified as held available-for-sale. Capstead finances a majority of its holdings of residential mortgage securities with commercial banks and other financial institutions using borrowings under repurchase arrangements supported by the Company's long-term investment capital. |
