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Ellington Residential Mortgage Completes Fund Conversion

Story Highlights
  • Ellington Credit Company completed its conversion to a closed-end fund on April 1, 2025.
  • The conversion includes new management agreements and aims to improve operational efficiency.
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Ellington Residential Mortgage Completes Fund Conversion

Ellington Residential Mortgage ( (EARN) ) has provided an update.

On April 1, 2025, Ellington Credit Company announced the completion of its conversion to a Delaware-domiciled closed-end fund registered under the Investment Company Act of 1940. This conversion involves selling its remaining Agency MBS pools, acquiring additional corporate CLOs, and operating as a Regulated Investment Company under U.S. federal tax law. The company also plans to change its fiscal and tax year to end on March 31. The new agreements, including an Investment Advisory Agreement and an Administration Agreement, outline the management and administrative fees, which are based on the fund’s net asset value and performance. The conversion aims to enhance the company’s operational efficiency and market positioning.

More about Ellington Residential Mortgage

Ellington Credit Company (NYSE: EARN) is an externally managed, non-diversified closed-end fund that primarily invests in collateralized loan obligations (CLOs), focusing on mezzanine debt and equity tranches. The company is managed by an affiliate of Ellington Management Group, L.L.C., a leading fixed-income investment manager.

YTD Price Performance: -15.07%

Average Trading Volume: 760,804

Technical Sentiment Signal: Buy

Current Market Cap: $170.1M

See more insights into EARN stock on TipRanks’ Stock Analysis page.

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