We intend to utilize an opportunistic strategy that we believe will enable us to generate attractive current yields and risk-adjusted total returns for our shareholders.

Our strategy utilizes an investment model that focuses on security selection and allocates capital to assets that balance a range of mortgage-related risks. We construct and actively manage our investment portfolio, comprised primarily of Agency RMBS and, to a lesser extent, non-Agency RMBS. We may also opportunistically acquire and manage other mortgage- and real estate-related assets, such as MSRs and residential whole mortgage loans. We expect to opportunistically mitigate our interest rate and prepayment risk using a variety of hedging instruments.

EARN’s approach to investing in the mortgage-backed securities markets is highly disciplined and analytical. We concentrate primarily on the development of proprietary interest-rate and prepayment models, as well as other proprietary research and analytics.

Target Asset Classes



Agency Residential Mortgage-Backed Securities

  • RMBS backed by fixed rate mortgages and Hybrid ARMs
  • Whole pool and other mortgage pass-through certificates
  • Agency CMOs, including IOs, POs, IIOs, and inverse floaters
  • RMBS backed by manufactured housing loans
  • TBAs

Non-Agency Residential Mortgage-Backed Securities

  • RMBS backed by prime jumbo, Alt-A and subprime mortgages
  • RMBS backed by fixed rate mortgages, ARMs, Option-ARMs, Neg-Am ARMs and Hybrid ARMs
  • RMBS backed by first lien and second lien mortgages
  • RMBS backed by manufactured housing loans

Other

  • Other mortgage- and real estate-related assets

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