Angel Oak Mortgage Reit Inc 's

The company operates in a competitive environment, competing for investment opportunities with various institutional investors, including other real estate investment trusts (REITs), specialty finance companies, public and private funds—some sponsored, advised, or managed by Angel Oak or its affiliates—commercial and investment banks, commercial finance and insurance companies, and other financial institutions. Several REITs have raised or may raise significant capital with overlapping investment objectives, increasing competition. Competitors may have advantages such as lower cost of funds, access to funding sources unavailable to the company, fewer regulatory constraints, higher risk tolerances, and different risk assessments. These factors may enable competitors to consider a wider variety of loans and investments, offer more attractive pricing or terms, and establish more relationships. Increased competition may reduce yields in target asset classes, limiting the company's ability to generate satisfactory returns. Additionally, changes in financial regulations could allow banks and other financial institutions to compete more directly for investment opportunities previously unavailable to them.