Earlier this week, the CEO and CIO of Two Harbors (NYSE:TWO) spoke at a KBW conference and detailed the company's strategy for navigating the current fixed income market. Surprisingly, the two didn't seem overly concerned with the interest rate environment, but rather the ability to find opportunities with the appropriate level of return give the asset's risk profile.

In the following video, Motley Fool banking analyst David Hanson discusses why, unlike competitors like Annaly Capital and American Capital Agency, Two Harbors has greater ability to venture outside of the agency MBS market. Meanwhile, its smaller size allows management to move the overall needle with incremental investments in assets like mortgage servicing rights.

David Hanson owns shares of Annaly Capital Management. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.