Wed, Aug 14, 7:56 PM (153 days ago)
Ellington Credit Company reported its quarterly results for the period ending June 30, 2024, reflecting a strategic shift towards corporate collateralized loan obligations (CLOs) after revoking its REIT status. The company experienced a net loss of $0.8 million, down from a profit of $1.2 million in the same quarter last year, primarily due to increased expenses and losses on securities, which outweighed gains from financial derivatives. Interest income rose to $14.1 million, driven by higher asset yields, while interest expenses decreased to $10.2 million, reflecting lower overall borrowings. Total assets amounted to $933.5 million, with a significant portion in securities, and shareholders' equity increased to $146.1 million. The debt-to-equity ratio improved to 4.0:1, indicating reduced leverage. The company continues to manage interest rate risk through derivatives, while its CLO portfolio expanded to $85.1 million, benefiting from favorable market conditions. Future operations will focus on increasing CLO investments, with ongoing liquidation of mortgage-related assets. The company’s strategic transformation aims to enhance risk-adjusted returns while navigating market uncertainties.