OPX 8k 05-08-2006

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
Form 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 8, 2006
 
Opteum Inc.
(Exact Name of Registrant as Specified in Charter)

Maryland
001-32171
72-1571637
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)

3305 Flamingo Drive, Vero Beach, Florida 32963
(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code (772) 231-1400

N/A
(Former Name or Former Address, if Changed Since Last Report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

REGULATION FD DISCLOSURE

On May 8, 2006, Opteum Inc. (the “Company”) prepared updated portfolio information as of May 5, 2006. A copy of this information is attached hereto as Exhibit 99.1.

The Company believes that certain statements in the information attached may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management’s views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from those expressed or implied. Information concerning factors that could cause actual results to differ materially from those in forward-looking statements is contained from time to time in the Company’s filings with the U.S. Securities and Exchange Commission.

This information furnished under this “Item 7.01 Regulation FD Disclosure,” including the exhibit related hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any disclosure document of the Company, except as shall be expressly set forth by specific reference in such document.

ITEM 9.01.
EXHIBITS

(c)
Exhibit

The following exhibit is filed pursuant to Item 601 of Regulation S-K:

99.1 - Updated Portfolio Information of Opteum Inc.




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Date: May 8, 2006
OPTEUM INC.
   
   
 
By:
/s/ Jeffrey J. Zimmer
  
   
Jeffrey J. Zimmer
   
Chairman, Chief Executive Officer and President


EXHIBIT INDEX
 
Exhibit No.
 
  
 
 
 
99.1
-
Updated Portfolio Information of Opteum Inc.


Exhibit 99.1
UNAUDITED as of 5/5/2006

Opteum Inc. - Asset Information
This Table Reflects All Transactions. Prices Used Are Internally Generated.

Valuation
Asset Category
  
Market Value
 
As a Percentage of
Mortgage Assets
 
As a Percentage of
Mortgage Assets, Cash
and P&I Receivable
Adjustable Rate Mortgage Backed Securities (1)
$
2,224,107,350
 
62.71%
  
59.78%
Hybrid Adjustable Rate Mortgage Backed Securities
  
596,064,400
 
16.81%
  
16.02%
Fixed Rate Mortgage Backed Securities
  
541,079,453
 
15.25%
  
14.54%
Fixed Rate Agency Debt
  
79,118,738
 
2.23%
  
2.13%
Fixed Rate CMO
  
61,865,240
 
1.74%
  
1.66%
Balloon Maturity Mortgage Backed Securities
  
44,840,123
 
1.26%
  
1.21%
Total: Mortgage Assets (2)
$
3,547,075,304
 
100.00%
  
 
           
 
Total Cash and Net Short-Term Receivables
$
125,375,472
 
    
2.91%
Cash out on Margin (Encumbered Cash)
  
0
 
    
0.00%
Long-Term Receivables From Opteum Financial Services LLC
  
65,000,000
 
    
1.75%
Total: All Assets
$
3,737,450,776
 
    
100.00%

Note: The Value of Securities in the Box is $50,413,387

(1)
Adjustable Rate MBS are those that reset coupons within one year’s time.
(2)
This includes forward settling purchases. There are no forward settling sales as of 5/5/2006
*
The information contained herein EXCLUDES all Opteum Financial Services LLC’s assets.

Characteristics
Asset Category
 
Weighted Average
Coupon
 
Weighted Average
Lifetime Cap
 
Weighted Average
Periodic Cap
Per Year (3)
 
Weighted Average
Coupon Reset
(in Months)
 
Longest
Maturity
 
Weighted Average
Maturity
(in Months)
Adjustable Rate Mortgage Backed Securities(3)
 
4.68%
  
10.33%
  
1.84%
  
5.17
  
1-Apr-44
  
331
Hybrid Adjustable Rate Mortgage Backed Securities
 
4.42%
  
9.87%
  
1.67%
  
17.59
  
1-Nov-35
  
334
Fixed Rate Mortgage Backed Securities
 
6.91%
  
n/a
  
n/a
  
n/a
  
1-Apr-36
  
277
Fixed Rate Agency Debt
 
4.00%
  
n/a
  
n/a
  
n/a
  
25-Feb-10
  
46
Fixed Rate CMO
 
5.63%
  
n/a
  
n/a
  
n/a
  
25-Jul-34
  
331
Balloon Maturity Mortgage Backed Securities
 
4.05%
  
n/a
  
n/a
  
n/a
  
1-Feb-11
  
44
Total: Mortgage Assets
 
4.97%
  
10.23%
  
1.80%
  
7.80
  
1-Apr-44
  
313

(3) 26.4% ($587.2 million) of The Adjustable Rate Mortgage Portfolio Have No Periodic Caps. These assets are excluded from the weighted average periodic cap per year calculation

Agency
  
Market Value
  
As a Percentage of Mortgage Assets
  
Pool Status
  
Market Value
  
As a Percentage of Mortgage Assets
Fannie Mae
$
2,376,481,549
 
67.00%
  
Whole Pool
$
2,285,247,079
 
64.43%
Freddie Mac
  
632,221,761
 
17.82%
  
Non Whole Pool
  
1,261,828,225
 
35.57%
Ginnie Mae
  
538,371,994
 
15.18%
  
Total Portfolio
$
3,547,075,304
 
100.00%
Total Portfolio
$
3,547,075,304
 
100.00%
            






Prepayment Speeds
Asset Category
  
Weighted Average
One Month
Prepayment Speeds
(CPR)
  
Weighted Average
Three Month
Prepayment Speeds
(CPR)
Adjustable Rate Mortgage Backed Securities
  
32.70%
  
34.40%
Hybrid Adjustable Rate Mortgage Backed Securities
  
22.75%
  
23.77%
Fixed Rate Mortgage Backed Securities
  
15.96%
  
20.86%
Fixed Rate Agency Debt
  
0.19%
  
14.58%
Fixed Rate CMO
  
28.15%
  
23.41%
Balloon Maturity Mortgage Backed Securities
  
11.88%
  
14.08%
Total: Mortgage Assets
  
27.26%
  
29.50%


On May 5, 2006 Prepayment Speeds were released for paydowns occurring in April 2006 (February - April for three month speeds). The numbers above reflect that data.


Portfolio Price and Duration
Weighted Average Purchase Price
$
102.34
Weighted Average Current Price
$
100.41
Modeled Effective Duration
  
1.448



 
Internally
Generated Market
Value
 
% of Asset
Class
 
% of Total Mortgage
Assets
Adjustable Rate Mortgages
          
 
One Month LIBOR
$
31,471,131
 
1.42%
  
0.89%
Moving Treasury Average
  
51,938,336
 
2.34%
  
1.47%
Cost Of Funds Index
  
377,720,945
 
16.98%
  
10.65%
Six Month LIBOR
  
183,798,513
 
8.26%
  
5.18%
Six Month CD Rate
  
2,847,255
 
0.13%
  
0.08%
One Year LIBOR
  
640,605,797
 
28.80%
  
18.06%
Conventional One Year CMT
  
603,463,505
 
27.13%
  
17.01%
FHA and VA One Year CMT
  
326,098,592
 
14.66%
  
9.19%
Other
  
6,163,276
 
0.28%
  
0.17%
Total ARMs
$
2,224,107,350
 
100.00%
  
62.70%
 
          
 
Hybrid ARMs
          
 
Generic Fannie or Freddie Hybrid ARMs
          
 
13 - 18 Months to First Reset
$
329,164,327
 
55.22%
  
9.28%
19 - 24 Months to First Reset
  
23,461,265
 
3.94%
  
0.66%
25 - 36 Months to First Reset
  
42,399,211
 
7.11%
  
1.20%
37 - 48 Months to First Reset
  
0
 
0.00%
  
0.00%
Total
$
395,024,803
 
66.27%
  
11.14%
 
            
Agency Alt-A Hybrid ARMs
            
13 - 18 Months to First Reset
$
7,463,197
 
1.26%
  
0.21%
19 - 24 Months to First Reset
  
7,572,529
 
1.27%
  
0.21%
25 - 36 Months to First Reset
  
10,874,328
 
1.82%
  
0.31%
37 - 47 Months to First Reset
  
1,256,965
 
0.21%
  
0.04%
Total
$
27,167,019
 
4.56%
  
0.77%
 
            
GNMA Hybrid ARMs
            
13 - 24 Months to First Reset
$
166,685,631
 
27.96%
  
4.70%
25 - 36 Months to First Reset
  
7,186,947
 
1.21%
  
0.20%
Total
$
173,872,578
 
29.17%
  
4.90%
 
  
 
  
 
  
 
Total Hybrid ARMs
$
596,064,400
 
100.00%
  
16.80%
             
Balloons
 
          
< = 4.0 Years to Balloon Date
$
34,875,890
 
77.78%
  
0.98%
4.01 - 5.0 Years to Balloon Date
  
9,964,233
 
22.22%
  
0.28%
5.01 - 5.5 Years to Balloon Date
  
0
 
0.00%
  
0.00%
Total Balloons
$
44,840,123
 
100.00%
  
1.26%





 
 
Internally
Generated Market
Value
  
% of Asset
Class
  
% of Total Mortgage
Assets
Fixed Rate Agency Debt
 
          
4.5yr Stated Final Maturity
$
79,118,738
 
100.00%
  
2.23%
Total Fixed Rate Agency Debt
$
79,118,738
 
100.00%
  
2.23%
 
 
          
Fixed Rate CMOs
 
          
Fixed Rate CMOs
$
61,865,240
 
100.00%
  
1.74%
Total Fixed Rate CMOs
$
61,865,240
 
100.00%
  
1.74%
             
Fixed Rate Assets
 
          
10yr Other (Seasoned, Low Avg Bal, Low FICO, etc.)
 $
1,796,419
 
0.34%
  
0.05%
15yr $85,000 Maximum Loan Size
 
66,758,195
 
12.34%
  
1.88%
15yr $110,000 Maximum Loan Size
 
4,493,544
 
0.83%
  
0.13%
15yr 100% Investor Property
 
596,949
 
0.11%
  
0.02%
15yr 100% FNMA Expanded Approval Level 3
 
712,062
 
0.13%
  
0.02%
15yr 100% Alt-A
 
36,688,536
 
6.78%
  
1.03%
15yr Geography Specific (NY, FL, VT, TX)
 
1,607,618
 
0.30%
  
0.05%
15yr Other (Seasoned, Low Avg Bal, Low FICO, etc.)
 
23,933,048
 
4.42%
  
0.67%
20yr Other (Seasoned, Low Avg Bal, Low FICO, etc.)
 
1,051,974
 
0.19%
  
0.03%
20yr 100% Alt-A
 
764,722
 
0.14%
  
0.02%
30yr $85,000 Maximum Loan Size
 
184,955,568
 
34.18%
  
5.21%
30yr $110,000 Maximum Loan Size
 
35,814,098
 
6.62%
  
1.01%
30yr 100% Investor Property
 
6,047,962
 
1.12%
  
0.17%
30yr 100% FNMA Expanded Approval Level 3
 
43,303,941
 
8.00%
  
1.22%
30yr 100% Alt-A
 
32,236,714
 
5.96%
  
0.91%
30yr Geography Specific (NY, FL, VT, TX)
 
3,963,323
 
0.73%
  
0.11%
30yr 100% GNMA Builder Buydown Program
 
4,580,501
 
0.85%
  
0.13%
30yr Other (Seasoned, Low Avg Bal, Low FICO, etc.)
 
91,774,277
 
16.96%
  
2.59%
Total Fixed Rate Collateral
$
541,079,453
 
100.00%
  
15.25%
             
Total (All Mortgage Assets)
$
3,547,075,304
     
100.00%
Cash or Cash Receivables
  
125,375,472
       
Long-Term Receivables From OFS
  
65,000,000
       
Total Assets and Cash
$
3,737,450,776
       
   
 
        
Total Forward Settling Purchases
$
125,850,286
       


UNAUDITED Funding Information as of 5/5/2006


Repurchase Counterparties
 
Dollar Amount of
Borrowings
  
Weighted Average
Maturity in Days
  
Longest
Maturity
Deutsche Bank (1)
$
1,078,021,000
 
37
  
11-Oct-06
JP Morgan Secs
 
657,327,559
 
31
  
28-Jul-06
WAMU
 
463,944,000
 
8
  
2-Jun-06
Nomura
 
302,894,000
 
84
  
18-Sep-06
Goldman Sachs
 
147,145,000
 
67
  
27-Jul-06
UBS Securities
 
139,152,000
 
53
  
19-Oct-06
Morgan Stanley
 
130,321,798
 
15
  
30-May-06
Merrill Lynch
 
113,329,000
 
42
  
3-Jul-06
BNP Paribas
 
93,753,250
 
68
  
6-Oct-06
Cantor Fitzgerald
 
58,408,000
 
8
  
25-May-06
Lehman Bros
 
56,782,000
 
54
  
28-Jun-06
RBS Greenwich Capital
 
42,080,000
 
60
  
5-Jul-06
Bear Stearns
  
37,265,000
 
39
  
7-Jul-06
Countrywide Secs
  
36,665,000
 
20
  
26-May-06
Daiwa Secs
  
19,732,000
 
63
  
7-Jul-06
Total
$
3,376,819,607
 
38
  
19-Oct-06
             
Total Forward Settling Purchases Without Committed Repo Terms
  
125,850,286
       
             
Estimated Haircut (at 3%)
  
3,775,510
       
Estimated Forward Borrowings
  
122,074,778
       
Estimated Total Borrowings
$
3,498,894,385
       
             
(1) Includes $507 Million floating rate repo obligations