Ellington Credit reports Q2 adjusted NII 23c, consensus 20c

NAV per share was $5.99 as of September 30, which includes the effects of distributions of 24c per share for the quarter. “Our CLO portfolio ramp-up continued in the quarter, and our net investment income increased in tandem. I’m pleased to announce that Ellington Credit (EARN) Company achieved full dividend coverage from net investment income in September,” said CEO Laurence Penn. “Results were further enhanced by active trading-encompassing 92 distinct CLO trades during the quarter-as well as by several CLO note redemptions at par on discounted purchases. We actively repositioned our portfolio during the quarter, as we added mezzanine debt tranches offering attractive yields and downside protection, while moderating new-issue equity exposure amid less favorable pricing dynamics. We also took advantage of secondary market opportunities to rotate into higher-quality, longer-dated equity positions. Looking ahead, our balanced mix of mezzanine and equity tranches (nearly a 50/50 split at quarter end), together with our significant credit hedging portfolio, should position us for both upside and resilience as market conditions evolve. We expect elevated loan repricing activity and ongoing credit dispersion to continue to create opportunities for outperformance through active management, reinforcing our confidence in delivering strong total returns for shareholders.”