filings.toolsItem 3. Quantitative and Qualitative Disclosures About Market Risk
7K characters. Original on sec.gov · Markdown
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks related to fluctuations in interest rates on our investments, debt obligations, loans held-for-sale and loans held-for-investment. We utilize forward commitments and option contracts to mitigate the risks associated with our mortgage loan portfolio. Since November 30, 2023, there have been no material changes in market risk exposures associated with interest rate risk.
As of February 29, 2024, we had no outstanding borrowings under our Credit Facility.
As of February 29, 2024, our borrowings under Financial Services' warehouse repurchase facilities totaled $1.3 billion under residential facilities and $89.6 million under LMF Commercial facilities.
Information Regarding Interest Rate Sensitivity
Principal (Notional) Amount by
Expected Maturity and Average Interest Rate
February 29, 2024
| Nine Months Ending November 30, | Years Ending November 30, | Fair Value at February 29, | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in millions) | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homebuilding: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Notes and other debts payable: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed rate | $ | 472.6 | 674.7 | 456.0 | 1,171.0 | 10.1 | 14.3 | 30.8 | 2,829.5 | 2,808.5 | |||||||||||||||||||||||||||||||||||||||||||
| Average interest rate | 4.5 | % | 4.7 | % | 5.1 | % | 4.8 | % | 3.0 | % | 6.8 | % | 5.2 | % | 4.8 | % | — | ||||||||||||||||||||||||||||||||||||
| Financial Services: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes and other debts payable: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed rate | $ | — | — | — | — | — | — | 130.3 | 130.3 | 130.7 | |||||||||||||||||||||||||||||||||||||||||||
| Average interest rate | — | — | — | — | — | — | 3.4 | % | 3.4 | % | — | ||||||||||||||||||||||||||||||||||||||||||
| Variable rate | $ | 1,434.0 | — | — | — | — | — | — | 1,434.0 | 1,434.0 | |||||||||||||||||||||||||||||||||||||||||||
| Average interest rate | 7.0 | % | — | — | — | — | — | — | 7.0 | % | — | ||||||||||||||||||||||||||||||||||||||||||
For additional information regarding our market risk refer to Item 7A. Quantitative and Qualitative Disclosures About Market Risk in our Annual Report on Form 10-K for the fiscal year ended November 30, 2023.
Previous: Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations · Next: Item 4. Controls and Procedures