UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8‑K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934


March 20, 2020
Date of Report (Date of earliest event reported)

ANWORTH MORTGAGE ASSET CORPORATION
(Exact Name of Registrant as Specified in its Charter)

Maryland
(State or Other Jurisdiction of Incorporation)

001-13709 52-2059785
(Commission File Number)
(IRS Employer Identification No.)
 

1299 Ocean Avenue, Second Floor, Santa Monica, California
90401
(Address of Principal Executive Offices) (Zip Code)

(310) 255-4493
(Registrant's Telephone Number, Including Area Code)

 
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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Common Stock, $0.01 Par Value
 
ANH
 
New York Stock Exchange
Series A Cumulative Preferred Stock, $0.01 Par Value
 
ANHPRA
 
New York Stock Exchange
Series B Cumulative Convertible Preferred Stock, $0.01 Par Value
 
ANHPRB
 
New York Stock Exchange
Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value
 
ANHPRC
 
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act or Rule 12b-2 of the Exchange Act.
 
 
Emerging growth company  ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐



Item 8.01.
Other Events.
 
On March 20, 2020, Anworth Mortgage Asset Corporation (the “Company”) issued a press release (the “Press Release”) announcing the following updates with respect to its operations through the close of business on March 20, 2020:

At this time, the Company is delaying the declaration of its quarterly common stock dividend that would typically be paid on April 29, 2020.   The Company believes this decision is prudent, given the current market conditions, and is also in the best interest of its shareholders.

The Company estimates that its book value is down approximately 15% in the current quarter, through March 17, 2020.  Over the last several days, markets in both Agency MBS and Non-Agency MBS have been increasingly volatile and illiquid, and the Company would estimate that its current book value would be significantly lower than its March 17, 2020 estimate if based upon valuations derived from the highly illiquid trading activity that the Company has recently observed.

The Company has continued to roll over its repurchase agreement (“repo”) borrowings as needed.  The repo markets continue to function, although with higher interest rates and more restrictive terms being requested by some Non-Agency MBS repo counterparties.
 
A copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

As discussed therein, the press release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions.  These forward-looking statements relate to the Company’s current expectations and are subject to the limitations and qualifications set forth in the Press Release as well as in the Company’s other documents filed with the United States Securities and Exchange Commission, including, without limitation, that actual events and/or results may differ materially from those projected in such forward-looking statements.


Item 9.01.
Financial Statements and Exhibits.

(a)
Not Applicable.
   
(b)
Not Applicable.
   
(c)
Not Applicable.
   
(d)
Exhibits.
   
 
   
  Press release, dated March 20, 2020, announcing updates with respect to the Company’s operations through the close of business on March 20, 2020.



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.


 
ANWORTH MORTGAGE ASSET CORPORATION
       
Date: March 23, 2020
By:
 /s/ Joseph E. McAdams
      Chief Executive Officer and President

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