Ellington Financial LLC - EFC

This company invests in residential and commercial mortgage and asset-backed backed securities, consumer loans, collateralised loan obligations, non-mortgage and mortgage-related derivatives and equity investments.


11% monthly divs with a price target of $17. Currently dropped to $15.50 . Me bought in. And now at $14.95.


Just getting in on these so fingers crossed


mREIT this one, but their strategy is not focused on a particular area leaving them free to mix and match. Their portfolio is quite diversified, which I hope helps them survive a storm. I don’t really understand the mREITs well.

Here is a what they do: ( Scroll down to the heaeding “Our Company” )

EFC has some mortgage-backed securities that do not comply with Fannie Mae Freddie Mac guideline, which means some credit-scores might not be that good. However I read that the ratio is not worry some. ( I cannot recall the source ).

Always hovered around 17 US and slowly rose after covid crash dropped it down to 4 or 5 US with a steady rise back to 17-19 US. Now down to 15USD on market jitters, rate hike fear, and recession fear.

Recently they closed a non-QM mortgage of 426,000,000 USD. New article here:

Their last earnings were down. Here is the link to Seeking Alpha that should be read before hand.

May 05, 2022 4:23 PM ET[Ellington Financial Inc. (EFC)]Ellington Financial Inc. Reports First Quarter 2022 Results | Seeking Alpha

There are articles on Seeking Alpha on them:

I have had a long position in EFC for more than a year, and intend to hold. it is approx., 6% of my portfolio. This is not a recommendation.

Don’t forget the subprime collapse back in 2008. Although I don’t think EFC does sub-prime.

Don’t forget their EPS decreased by $0.04.

I really like these monthly dividend payers.

Do your own home work.


zacks has a sell rating, but this does not help long term positions spanning years.

Today dropped lots.

Can we have this on the ISA?


Some big drops on these

Anyone else holding these interested to see what others think of them.

Personally I am more interested in UK based investment trusts. Those in the debt sectors. There are 3 debt sectors on the AIC site. I generally only find decent investment in the “debt-direct lending” sector. I am selling some other investments and buying those that stream interest as dividends (very few do) These are covered by the £5,000 starter savings tax allowance. So no tax to pay on them ONLY if you meet the requirements.
In reference to higher interest rates they normally increase their interest rates realitive to base rates. Some like VSL “capture” the higher rates immediately (all loans are floating rate,) Others overtime.
VSL was charging 10.5% December 21 now charging 13.8%. alas they are going into wind down. Very very annoying.