Competitive Strengths

Experienced and Cohesive Management Team: The extensive experience of our officers and the officers of our Manager provides us with expertise across all of our targeted asset classes. Many members of our team have worked together for over 18 years and members of our management team have experience as heads of RMBS origination and trading, whole loan MBS origination and trading, and fixed income research and quantitative systems at major financial institutions.

Sophisticated Platform and Analytical Capabilities: We benefit from Ellington Management Group’s proprietary analytical models and infrastructure, which have been developed through many years of experience and across multiple market cycles. EMG's risk management process emphasizes the quantitative assessment and management of interest rate, prepayment, and credit risks, both on a security by security and portfolio basis. This is made possible with sophisticated quantitative tools and methodologies that are the foundation of EMG's unique investment acquisition and portfolio construction process. Analyzing mortgage credit risk and prepayment risk in particular necessitates the development and continuous refinement of sophisticated statistics-based computer models. We believe that this expertise and infrastructure, together with EMG's experience investing and leveraging large pools of capital in complex mortgage and derivative instruments through various economic and business cycles, are critical for us to meet our objectives.

Disciplined Security Selection Process: Our disciplined approach to security selection is a fundamental component of our asset acquisition strategy. Ellington’s proprietary analytics allow it to analyze securities individually based on a variety of factors driving value, including favorable prepayment characteristics of Agency-guaranteed mortgage-backed securities. Coupled with our active and opportunistic management of our investments and hedges, our security selection process aims to generate attractive current yields and risk-adjusted total returns for our shareholders.

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