[Financial Highlights and Management Commentary](index=1&type=section&id=Financial%20Highlights%20and%20Management%20Commentary) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Ellington Credit Company reported a **NAV of $6.12 per share** and **GAAP net income of $10.2 million** for Q1 FY2026, with its CLO portfolio growing **27% to $316.9 million** Key Financial Metrics | Metric | Q1 FY2026 (ended June 30, 2025) | Q4 FY2025 (ended March 31, 2025) | | :--- | :--- | :--- | | **NAV per Share** | $6.12 | $6.08 | | **GAAP Net Income** | $10.2 million ($0.27/share) | N/A | | **Net Investment Income (NII)** | $6.5 million ($0.17/share) | N/A | | **Adjusted NII** | $6.6 million ($0.18/share) | N/A | | **Total CLO Portfolio** | $316.9 million | $249.9 million | | **CLO Debt Investments** | $148.9 million | $85.5 million | | **CLO Equity Investments** | $168.0 million | $164.4 million | - The company achieved a weighted average GAAP yield of **15.6%** on its total CLO portfolio for the quarter[8](index=8&type=chunk) - Received **$15.9 million** in recurring cash distributions from the investment portfolio, equivalent to **$0.42 per share**[8](index=8&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted a **19.7% annualized return** for the quarter, driven by strong CLO performance and successful disposition of legacy mortgage investments, projecting NII to cover distributions by September - Generated a strong annualized return of **19.7%** in the first quarter of the new fiscal year[3](index=3&type=chunk) - Successfully completed the disposition of legacy mortgage-related investments with minimal impact on NAV[3](index=3&type=chunk) - Capitalized on market volatility early in the quarter to make compelling investments and later added credit hedges at attractive entry points as spreads tightened[4](index=4&type=chunk)[5](index=5&type=chunk) - Management projects that Net Investment Income (NII) will cover the monthly distribution beginning in September, following a period of capital rotation[6](index=6&type=chunk) [Distributions](index=1&type=section&id=Distributions) The Board of Trustees declared consistent monthly distributions of **$0.08 per common share** for April through August 2025 Monthly Distributions | Declaration Date | Record Date | Payment Date | Distribution Per Share | | :--- | :--- | :--- | :--- | | April 3, 2025 | April 30, 2025 | May 27, 2025 | $0.08 | | May 7, 2025 | May 30, 2025 | June 30, 2025 | $0.08 | | June 9, 2025 | June 30, 2025 | July 31, 2025 | $0.08 | | July 8, 2025 | July 31, 2025 | August 29, 2025 | $0.08 | | August 7, 2025 | August 29, 2025 | September 30, 2025 | $0.08 | [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) [Investment Portfolio Composition](index=2&type=section&id=Investment%20Portfolio%20Composition) As of June 30, 2025, the total investment portfolio had a fair value of **$317.3 million**, predominantly in CLO investments with **52.9% in CLO equity** Investment Portfolio by Type (as of June 30, 2025) | Investment Type | Amortized Cost (In thousands) | Fair Value (In thousands) | % of Total Investments | | :--- | :--- | :--- | :--- | | **Total CLO debt** | $144,917 | $148,868 | 47.0% | | U.S. CLO debt | $116,246 | $117,930 | 37.2% | | European CLO debt | $28,671 | $30,938 | 9.8% | | **Total CLO equity** | $164,955 | $167,990 | 52.9% | | U.S. CLO equity | $152,729 | $155,235 | 48.9% | | European CLO equity | $12,226 | $12,755 | 4.0% | | **Total investments** | **$310,308** | **$317,279** | **100.0%** | [Results of Operations](index=2&type=section&id=Results%20of%20Operations) The company reported **total investment income of $11.7 million** and **net income of $10.2 million** for the quarter, with U.S. CLO equity as the largest contributor Condensed Statement of Operations (Quarter Ended June 30, 2025) | (In thousands, except per share amounts) | Quarter Ended June 30, 2025 | Per Share | | :--- | :--- | :--- | | Total investment income | $11,670 | $0.31 | | Total expenses | ($5,149) | ($0.14) | | **Net investment income** | **$6,521** | **$0.17** | | Net realized gain on investments | $229 | $0.01 | | Change in net unrealized gain on investments | $3,777 | $0.10 | | **Net income** | **$10,205** | **$0.27** | - The largest contributors to net income were **U.S. CLO Equity ($8.6 million)** and **U.S. CLO Debt ($4.5 million)**[11](index=11&type=chunk) [Net Asset Value (NAV) Summary](index=3&type=section&id=Net%20Asset%20Value%20(NAV)%20Summary) As of June 30, 2025, the company's **total assets were $363.9 million**, resulting in a **net asset value of $229.7 million** or **$6.12 per common share** Net Asset Value (as of June 30, 2025) | (In thousands, except per share amounts) | June 30, 2025 | | :--- | :--- | | Total assets | $363,946 | | Total liabilities | $134,213 | | **Net asset value** | **$229,733** | | Common shares outstanding | 37,559,195 | | **Net asset value per common share** | **$6.12** | [CLO Market and Strategy Performance](index=2&type=section&id=CLO%20Market%20and%20Strategy%20Performance) [Market and Strategy Overview](index=2&type=section&id=Market%20and%20Strategy%20Overview) The quarter saw initial market volatility followed by a rebound, with U.S. CLOs outperforming, and the company's strategy delivering excellent results, ending with a **$316.9 million CLO portfolio** - The quarter started with high volatility and widening credit spreads in April, followed by a market rebound in May and June as tariff concerns eased[13](index=13&type=chunk) - U.S. CLOs outperformed European CLOs, with U.S. leveraged loan prices rebounding more strongly and U.S. CLO equity benefiting from strong investor demand and lower volatility[14](index=14&type=chunk)[16](index=16&type=chunk) - The company's performance was enhanced by active trading, deal calls of two mezzanine positions, and a beneficial reset of a CLO equity position[17](index=17&type=chunk) - The CLO portfolio ended the quarter at **$316.9 million** with a weighted average expected yield of **15.0%** based on fair market value[17](index=17&type=chunk) [Supplemental Information](index=3&type=section&id=Supplemental%20Information) [Reconciliation of Non-GAAP Measures](index=4&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) GAAP Net Investment Income of **$6.521 million** was adjusted for non-recurring costs, resulting in an **Adjusted NII of $6.596 million** or **$0.18 per share** Reconciliation of Net Investment Income to Adjusted Net Investment Income (Quarter Ended June 30, 2025) | (In thousands except per share amounts) | Quarter Ended June 30, 2025 | | :--- | :--- | | Net Investment Income (GAAP) | $6,521 | | Adjustment: Non-recurring expenses | $75 | | **Adjusted Net Investment Income (Non-GAAP)** | **$6,596** | | **Adjusted Net Investment Income Per Share** | **$0.18** | - Adjusted Net Investment Income is presented because management believes it is a useful indicator of long-term financial performance and distribution-paying ability by excluding certain non-recurring expenses[23](index=23&type=chunk) [Company Overview, Conference Call, and Forward-Looking Statements](index=3&type=section&id=Company%20Overview%2C%20Conference%20Call%2C%20and%20Forward-Looking%20Statements) This section provides corporate information, details for the Q1 2026 earnings call, and a cautionary statement regarding forward-looking statements and associated risks - The company is a non-diversified closed-end fund primarily investing in CLO mezzanine debt and equity tranches[19](index=19&type=chunk) - A conference call to discuss the financial results was scheduled for 11:00 a.m. Eastern Time on Wednesday, August 20, 2025[20](index=20&type=chunk) - The report contains forward-looking statements that are subject to numerous risks and uncertainties, including changes in interest rates, market volatility, and default rates[21](index=21&type=chunk)

Core Viewpoint - Ellington Credit (EARN) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, which could significantly influence its near-term stock price depending on how actual results compare to consensus estimates [1][2]. Earnings Expectations - The consensus estimate for Ellington Credit's quarterly earnings is $0.21 per share, reflecting a year-over-year decrease of 41.7%. Revenues are projected to be $9.68 million, representing a substantial increase of 148.2% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections during this period [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Ellington Credit aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%. The stock currently holds a Zacks Rank of 2, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Ellington Credit was expected to post earnings of $0.27 per share but delivered $0.26, resulting in a surprise of -3.70%. Over the past four quarters, the company has exceeded consensus EPS estimates three times [13][14]. Industry Comparison - Another player in the REIT and Equity Trust industry, Ready Capital (RC), is expected to report a loss of $0.01 per share for the same quarter, indicating a year-over-year change of -114.3%. Its revenues are expected to decline by 24.8% to $38.32 million, with a recent 5.9% downward revision in the consensus EPS estimate [18][19].

Part I [Business](index=4&type=section&id=Item%201.%20Business) Ellington Credit Company converted to a CLO-focused closed-end fund, managed by Ellington Credit Company Management LLC, targeting high yields from corporate CLOs - The company completed its **CLO Strategic Transformation** by converting from a REIT to a registered closed-end investment company effective April 1, 2025, focusing on mezzanine debt and equity tranches of corporate CLOs[22](index=22&type=chunk)[24](index=24&type=chunk)[26](index=26&type=chunk) - The company is externally managed by Ellington Credit Company Management LLC, an affiliate of Ellington Management Group, L.L.C., with approximately **$14.9 billion in assets under management** as of March 31, 2025[28](index=28&type=chunk)[31](index=31&type=chunk) - The company uses leverage, primarily through repurchase agreements, with a **debt-to-equity ratio of 2.3 to 1** as of March 31, 2025[62](index=62&type=chunk) - Post-conversion, a new Advisory Agreement includes a **1.50% annual base management fee** on Net Asset Value and a **17.5% performance fee** on pre-performance fee net investment income above an **8.00% annualized hurdle rate**[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) [Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from its CLO-focused strategy, including credit, leverage, market, and operational risks, alongside uncertainties from its recent fund conversion - The primary risk is exposure to the creditworthiness of underlying corporate borrowers in CLOs, with focus on subordinated mezzanine and equity tranches increasing loss exposure[143](index=143&type=chunk)[146](index=146&type=chunk)[198](index=198&type=chunk) - The Fund employs significant direct leverage and is exposed to substantial indirect leverage through CLO equity investments, with typical debt-to-equity ratios of **8 to 16 times**, magnifying loss risk[143](index=143&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk) - The Adviser's performance fee, based on pre-performance fee net investment income without considering capital losses, may incentivize higher-risk investments or increased leverage[144](index=144&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk) - Failure to qualify and maintain Regulated Investment Company (RIC) status would subject the Fund to corporate-level U.S. federal income tax, significantly reducing net returns and distributions[144](index=144&type=chunk)[313](index=313&type=chunk) - The recent conversion to a closed-end fund introduces material risks related to new operational processes, 1940 Act compliance, accounting changes, and tax year uncertainty, potentially delaying RIC qualification[143](index=143&type=chunk)[189](index=189&type=chunk) [Unresolved Staff Comments](index=57&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[348](index=348&type=chunk) [Cybersecurity](index=57&type=section&id=Item%201C.%20Cybersecurity) The company relies on its affiliate Ellington's cybersecurity processes, overseen by the Audit Committee, focusing on governance, technical safeguards, incident response, and employee education - The company is externally managed and relies on the information systems and cybersecurity processes of its affiliate, Ellington[349](index=349&type=chunk) - Ellington's cybersecurity strategy is a cross-functional approach focusing on governance, technical safeguards, incident response planning, third-party risk management, and employee training[350](index=350&type=chunk)[351](index=351&type=chunk)[358](index=358&type=chunk) - The Board, through its Audit Committee, oversees cybersecurity risk management, receiving regular presentations on the threat environment, vulnerability assessments, and technological trends[356](index=356&type=chunk) - To date, no cybersecurity threats have materially affected the company, despite two minor business email compromise incidents in recent years without material impact[355](index=355&type=chunk) [Properties](index=59&type=section&id=Item%202.%20Properties) The company does not own properties, operating from leased office space in Old Greenwich, CT, provided by its Adviser - The company does not own any properties and operates from a leased office space in Old Greenwich, CT, provided by its Adviser[360](index=360&type=chunk) [Legal Proceedings](index=59&type=section&id=Item%203.%20Legal%20Proceedings) Neither the company nor its Adviser are currently subject to any material legal proceedings, though regulatory inquiries are expected - Neither the company nor its Adviser are currently subject to any material legal proceedings[361](index=361&type=chunk) - The company and its affiliates operate in a highly regulated market and expect to receive regulatory inquiries from time to time[361](index=361&type=chunk)[362](index=362&type=chunk) [Mine Safety Disclosures](index=59&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[363](index=363&type=chunk) Part II [Market for Registrant's Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities](index=60&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common shares trade on the NYSE under "EARN," with 107 holders of record as of June 6, 2025, and 167,476 shares repurchased in Q1 2025 before the program's termination - The company's common shares trade on the NYSE under the ticker "EARN"[365](index=365&type=chunk) Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Remaining in Program | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31, 2025 | — | — | 725,808 | | Feb 1 - Feb 28, 2025 | — | — | 725,808 | | Mar 1 - Mar 31, 2025 | 167,476 | $5.84 | 558,332 | | **Total** | **167,476** | **$5.84** | **558,332** | - The 2018 Share Repurchase Program is no longer usable following the company's conversion to a closed-end fund[367](index=367&type=chunk) [Reserved](index=60&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=61&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section details the company's financial condition and results, reporting a **net loss of $(7.9) million** for Q1 2025 due to mark-to-market losses, as its CLO portfolio grew to **$249.9 million** amid its strategic transformation - The company is executing its **CLO Strategic Transformation**, shifting from an Agency RMBS-focused REIT to a CLO-focused closed-end fund, with its CLO portfolio growing to **$249.9 million** as of March 31, 2025[370](index=370&type=chunk)[384](index=384&type=chunk) Key Financial Metrics (as of March 31, 2025) | Metric | Value | | :--- | :--- | | Book Value per Share | $6.08 | | Debt-to-Equity Ratio (adjusted) | 2.2:1 | | CLO Portfolio (Fair Value) | $249.9 million | | Agency RMBS Portfolio (Fair Value) | $503.9 million | Results of Operations (Three Months Ended March 31) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income | $9,247 | $279 | | Total Other Income (Loss) | $(14,541) | $5,612 | | **Net Income (Loss)** | **$(7,870)** | **$3,961** | | **Net Income (Loss) Per Share** | **$(0.23)** | **$0.20** | - Adjusted Distributable Earnings for Q1 2025 were **$9.0 million**, or **$0.26 per share**, compared to **$5.3 million**, or **$0.27 per share**, for Q1 2024[461](index=461&type=chunk) - The company declared dividends of **$0.24 per share** for the three-month period ended March 31, 2025[493](index=493&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=85&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include credit risk from CLOs, interest rate risk managed by hedging, prepayment risk, and liquidity risk mitigated by diverse funding and unpledged assets - The company is subject to significant credit risk from its CLO investments, as the underlying corporate loans are typically below investment grade and carry greater default risk, especially in recessionary environments[514](index=514&type=chunk) - Interest rate risk is a key concern due to funding longer-term assets with shorter-term borrowings, managed using derivatives like interest rate swaps and TBAs[519](index=519&type=chunk)[520](index=520&type=chunk) Interest Rate Sensitivity Analysis (as of March 31, 2025) | ($ In thousands) | Decrease 50 bps | Decrease 100 bps | Increase 50 bps | Increase 100 bps | | :--- | :--- | :--- | :--- | :--- | | **Total Estimated Change in Portfolio Value** | **$ (26)** | **$ (57)** | **$ 20** | **$ 36** | | **% of Total Equity** | **(0.01)%** | **(0.02)%** | **0.01%** | **0.02%** | - Liquidity risk is managed by maintaining diverse funding sources, monitoring counterparty stability, and holding a cushion of cash and unpledged securities to meet potential margin calls[527](index=527&type=chunk)[528](index=528&type=chunk) [Financial Statements and Supplementary Data](index=88&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements, including balance sheets, statements of operations, and cash flows, along with detailed notes and the independent auditor's report [Report of Independent Registered Public Accounting Firm](index=89&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers LLP issued an unqualified audit opinion on the financial statements, identifying Level 3 securities valuation as a critical audit matter due to significant judgment - PricewaterhouseCoopers LLP provided an unqualified opinion, stating the financial statements are fairly presented in conformity with U.S. GAAP[531](index=531&type=chunk) - The valuation of Level 3 investments was identified as a Critical Audit Matter due to the significant management judgment and high degree of auditor subjectivity involved in determining their fair value[535](index=535&type=chunk)[537](index=537&type=chunk) [Consolidated Financial Statements](index=91&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show **total assets of $783.6 million** and **shareholders' equity of $228.5 million** as of March 31, 2025, with a **net loss of $(7.9) million** for the quarter Consolidated Balance Sheet Summary (in thousands) | | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $783,557 | $824,092 | | Total Liabilities | $555,056 | $630,366 | | **Total Shareholders' Equity** | **$228,501** | **$193,726** | Consolidated Statement of Operations Summary (in thousands) | | Three Months Ended Mar 31, 2025 | Year Ended Dec 31, 2024 | | :--- | :--- | :--- | | Total net interest income | $9,247 | $15,069 | | Total other income (loss) | $(14,541) | $811 | | **Net Income (Loss)** | **$(7,870)** | **$6,586** | [Notes to Consolidated Financial Statements](index=96&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the CLO Strategic Transformation, valuation methodologies for Level 2 and 3 assets, portfolio composition, repurchase agreement terms, related-party transactions, and subsequent events post-conversion - **Note 1:** Details the company's strategic transformation from a REIT to a CLO-focused closed-end fund, which was completed on April 1, 2025[557](index=557&type=chunk) - **Note 4:** As of March 31, 2025, the company held **$133.9 million of Level 3 securities** at fair value, primarily consisting of CLOs[641](index=641&type=chunk)[536](index=536&type=chunk) - **Note 6:** As of March 31, 2025, the company had **$517.5 million in outstanding borrowings** under repurchase agreements with 13 counterparties, collateralized by **$567.0 million of securities**[682](index=682&type=chunk)[683](index=683&type=chunk) - **Note 9:** Describes the new management agreement effective July 1, 2024, with a **1.50% annual base management fee** and a performance fee (waived through Q1 2025)[701](index=701&type=chunk)[703](index=703&type=chunk)[705](index=705&type=chunk) - **Note 13:** Details significant subsequent events including the April 1, 2025 conversion, sale of remaining Agency RMBS for **$500.9 million**, adoption of a new Advisory Agreement and a Dividend Reinvestment Plan (DRP)[741](index=741&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=132&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[762](index=762&type=chunk) [Controls and Procedures](index=132&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of March 31, 2025, with no material changes during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[763](index=763&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of March 31, 2025, based on the COSO framework[768](index=768&type=chunk) - No material changes were made to the internal control over financial reporting during the quarter ended March 31, 2025[764](index=764&type=chunk) [Other Information](index=134&type=section&id=Item%209B.%20Other%20Information) The company reports no other information under this item - None[769](index=769&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=134&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[770](index=770&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=134&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The Board of Trustees, with four independent members, oversees the company's business and risk management through its Audit and Nominating & Corporate Governance committees, while executive officers are provided by the Adviser - The Board is composed of six trustees, with **four being independent**, and Robert B. Allardice, III serving as the independent Chairman[772](index=772&type=chunk)[774](index=774&type=chunk)[796](index=796&type=chunk) - The Board has two standing committees, Audit and Nominating and Corporate Governance, both comprised solely of independent trustees[782](index=782&type=chunk)[788](index=788&type=chunk) - All executive officers are provided by the Adviser, an affiliate of Ellington, including Laurence E. Penn (CEO & President), Michael W. Vranos (Portfolio Manager & Trustee), and Christopher Smernoff (CFO)[777](index=777&type=chunk)[779](index=779&type=chunk) - The Board oversees risk management, with the Audit Committee specifically tasked with oversight of financial reporting, internal controls, and cybersecurity risks[797](index=797&type=chunk)[798](index=798&type=chunk)[799](index=799&type=chunk) [Executive Compensation](index=142&type=section&id=Item%2011.%20Executive%20Compensation) The company does not directly compensate its NEOs, who are employees of Ellington, but reimburses the Administrator for allocable compensation of certain staff, estimated at **$0.4 million** for Q1 2025 - The company does not directly compensate its NEOs, who are employees of Ellington and provided through the Adviser[808](index=808&type=chunk) - The company reimburses the Administrator for an allocable share of compensation for the CFO, COO, and support staff, with an estimated expense of approximately **$0.4 million** for Q1 2025[809](index=809&type=chunk) Trustee Compensation (Three Months Ended March 31, 2025) | Name | Fees Earned or Paid in Cash | Total Compensation | | :--- | :--- | :--- | | Robert B. Allardice, III | $27,500 | $27,963 | | David J. Miller | $19,375 | $19,838 | | Ronald I. Simon, Ph.D. | $19,375 | $19,838 | | Mary McBride | $17,500 | $17,963 | | Laurence E. Penn | — | — | | Michael W. Vranos | — | — | [Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=143&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) As of June 6, 2025, executive officers and trustees as a group beneficially owned **1.4%** of outstanding common shares, with no individual holding **1%** or more, and the 2023 Equity Incentive Plan was terminated post-conversion - As of June 6, 2025, all executive officers and trustees as a group beneficially owned **510,442 common shares**, representing **1.4%** of the outstanding shares[815](index=815&type=chunk) - No individual trustee or executive officer beneficially owned **1% or more** of the company's common shares[815](index=815&type=chunk) - The company's 2023 Equity Incentive Plan was terminated upon conversion to a closed-end fund, but **39,577 previously granted restricted shares** remain outstanding and subject to vesting[824](index=824&type=chunk)[825](index=825&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=145&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Key related party transactions are governed by the Advisory and Administration Agreements with Ellington affiliates, stipulating management fees and expense reimbursements, with oversight by the Governance Committee and 1940 Act restrictions post-conversion - The primary related party relationships are with the Adviser and Administrator, both affiliates of Ellington, governed by the Advisory and Administration Agreements effective April 1, 2025[828](index=828&type=chunk)[838](index=838&type=chunk) - The Advisory Agreement stipulates a **1.50% annual base management fee** and a **17.5% performance fee** on income above an **8% hurdle**[829](index=829&type=chunk)[830](index=830&type=chunk) - The Administration Agreement outlines the reimbursement by the Fund for its allocable portion of costs incurred by the Administrator, including compensation for the CFO and COO[838](index=838&type=chunk) - The Governance Committee reviews related party transactions, which are also subject to the prohibitions on principal and joint transactions under the 1940 Act since the conversion[826](index=826&type=chunk)[827](index=827&type=chunk) [Principal Accountant Fees and Services](index=147&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) PricewaterhouseCoopers LLP serves as the independent auditor, with all services pre-approved by the Audit Committee, and total fees for Q1 2025 were **$205,253**, primarily for audit services - PricewaterhouseCoopers LLP (PwC) is the company's independent registered public accounting firm[841](index=841&type=chunk) PwC Fees | Fee Type | Three-Month Period Ended Mar 31, 2025 | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | :--- | | Audit Fees | $205,000 | $514,250 | $476,840 | | Audit-related Fees | — | $44,700 | $76,500 | | Tax Fees | — | — | — | | All Other Fees | $253 | $1,010 | $1,641 | | **Total Fees** | **$205,253** | **$559,960** | **$554,981** | - All services provided by PwC were pre-approved by the Audit Committee in accordance with its established policies and procedures[846](index=846&type=chunk)[847](index=847&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=149&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists key exhibits filed with the Form 10-K, including corporate governance documents, material contracts, and required certifications, with financial statement schedules omitted as information is in Item 8 - Key exhibits filed with the report include: - Corporate governance documents (Declaration of Trust, Bylaws) - Material contracts (Advisory Agreement, Administration Agreement) - CEO and CFO certifications (Sections 302 and 906 of Sarbanes-Oxley) - Insider Trading Policy and Recovery of Erroneously Awarded Compensation Policy[852](index=852&type=chunk)[853](index=853&type=chunk) - Financial statement schedules have been omitted as the necessary information is contained within the Financial Statements and Notes to Financial Statements in Item 8[852](index=852&type=chunk) [Form 10-K Summary](index=151&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no summary under this item - None[854](index=854&type=chunk)

Financial Data and Key Metrics Changes - For calendar Q1, the company reported a net loss of $0.23 per share and adjusted distributable earnings of $0.26 per share [10] - The overall net interest margin increased by 20 basis points to 5.27, supported by a growing capital allocation to CLOs [10][11] - The economic return for the quarter was negative 3.2%, with book value per share at $6.08 [11] Business Line Data and Key Metrics Changes - The CLO portfolio increased by 46% to $250 million, while capital allocated to CLOs expanded to 81% from 72% [12] - The agency mortgage portfolio decreased slightly to $504 million from $512 million at the end of the previous quarter [12] - The portfolio P&L by strategy showed a negative $0.24 per share from CLOs and a positive $0.08 from agency [10] Market Data and Key Metrics Changes - The market experienced turbulence in March, with credit spreads widening and prices declining across high yield, investment grade, and CLO debt tranches [8] - Significant tariff de-escalations in May led to credit spreads and prices reversing course, retracing a significant portion of the March and April moves [9] Company Strategy and Development Direction - The company successfully completed its conversion to a registered closed-end fund and changed its fiscal calendar to begin on April 1 [5][6] - The strategy focuses on increasing the CLO portfolio while maintaining liquidity and flexibility in response to market conditions [23][30] - The company plans to add corporate debt to its liability structure later this year, which should be accretive to net investment income [30] Management's Comments on Operating Environment and Future Outlook - Management noted that while there were mark-to-market losses in calendar Q1, most price declines were driven by credit spread widening rather than realized credit losses [23] - The company is optimistic about deploying capital in a compelling market and believes it is well-positioned to drive strong earnings moving forward [30] Other Important Information - The company plans to issue monthly updates on portfolio metrics and net asset value on its website [27] - The company maintained high levels of liquidity, with approximately 18.8% of the total portfolio in cash and cash equivalents as of April 30 [28] Q&A Session Summary Question: How does the yield on newly acquired CLOs compare to the previous $250 million? - Management indicated that the weighted average yield varied from slightly wider to potentially hundreds of basis points back, depending on the type of assets purchased [34][35] Question: Do you have dry powder to deploy? - Management confirmed that they still have good dry powder available for deployment [37] Question: What are the latest thoughts on the ADE trajectory? - Management stated that they might be a little short this quarter but are on track for coverage in the third quarter [56]

Financial Data and Key Metrics Changes - For calendar Q1, the company reported a net loss of $0.23 per share and adjusted distributable earnings of $0.26 per share [9] - The overall net interest margin increased by 20 basis points to 5.27, supported by a growing capital allocation to CLOs [9] - The economic return for the quarter was negative 3.2%, with book value per share at $6.08 [10][11] Business Line Data and Key Metrics Changes - The CLO portfolio increased by 46% to $250 million, while capital allocated to CLOs expanded to 81% from 72% at the end of the previous quarter [11] - The agency RMBS holdings decreased slightly to $504 million from $512 million at the end of the previous quarter [11] - The portfolio P&L by strategy showed a negative $0.24 per share from CLOs and a positive $0.08 from agency [10] Market Data and Key Metrics Changes - The market experienced strong performance in January and February, followed by turbulence in March due to fears of tariffs, slowing growth, and persistent inflation [7] - Credit spreads widened significantly in March, impacting CLO mezzanine debt and equity tranches, leading to meaningful price declines [7][8] - Recent tariff de-escalations have led to credit spreads and prices reversing course in May, recovering a significant portion of the declines [8] Company Strategy and Development Direction - The company successfully completed its conversion to a registered closed-end fund and changed its fiscal calendar to begin on April 1 [4][5] - The strategy focuses on increasing the CLO portfolio while maintaining liquidity and flexibility in response to market conditions [22][29] - The company plans to add corporate debt to its liability structure later this year, which should be accretive to net investment income [29] Management's Comments on Operating Environment and Future Outlook - Management noted that while there were mark-to-market losses in calendar Q1, most price declines were driven by credit spread widening rather than realized credit losses [22] - The company is optimistic about deploying capital in a compelling market and believes it is well-positioned to drive strong earnings moving forward [29] - Management expects to be slightly short on dividend coverage in the second quarter but is on track for recovery in the third quarter [56] Other Important Information - The company disposed of all remaining mortgage positions shortly after April 1, which allowed for increased liquidity and buying power [8][25] - As of April 30, approximately 18.8% of the total portfolio, or about $59 million, was in cash and cash equivalents, providing ample dry powder for deployment [27] Q&A Session Summary Question: How does the yield on newly acquired CLOs compare to the previous $250 million? - Management indicated that the weighted average yield varied from slightly wider to potentially hundreds of basis points back, depending on the type of assets purchased [34] Question: Is there still dry powder available for deployment? - Management confirmed that there is still good dry powder available and that cash reserves are maintained to allow for increased portfolio size [37][39] Question: What are the latest thoughts on the ADE trajectory? - Management stated that they might be slightly short on covering the dividend in the second quarter but are on track for recovery in the third quarter [56]

Financial Performance - Net loss was $(7.9) million, or $(0.23) per share[11] - Adjusted Distributable Earnings were $9.0 million, or $0.26 per share[11] - Shareholders' equity was $228.5 million, with a book value per share of $6.08[11] Portfolio Allocation - Capital allocation to CLOs increased to 81% as of March 31, 2025, compared to 72% as of December 31, 2024[11] - The CLO portfolio grew to $249.9 million as of March 31, 2025, from $171.1 million as of December 31, 2024[11] - Agency RMBS portfolio was $503.9 million as of March 31, 2025[11] Market Conditions - The dividend rate was 17.1% based on the May 19, 2025, closing price of $5.62 and a monthly dividend of $0.08 per common share declared on May 7, 2025[11] - The weighted average constant prepayment speed on fixed-rate specified pools decreased quarter over quarter to 7.2 CPR from 9.5 CPR[11] Strategic Changes - The company completed its conversion to a CLO closed-end fund on April 1, 2025[11] - The entirety of Agency RMBS was sold and related TBA hedges were covered following the conversion in early April[11]

Core Viewpoint - Ellington Credit (EARN) reported quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.27 per share, and showing a decline from $0.27 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was -3.70%, contrasting with a previous quarter where the company exceeded expectations by 3.85% [2] - Revenues for the quarter were $9.25 million, missing the Zacks Consensus Estimate by 9.34%, compared to revenues of $0.28 million a year ago [3] - The company has not surpassed consensus revenue estimates in the last four quarters [3] Stock Performance - Ellington Credit shares have declined approximately 15.1% since the beginning of the year, while the S&P 500 has gained 1.4% [4] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $8.1 million, and for the current fiscal year, it is $0.96 on revenues of $36.81 million [8] - The estimate revisions trend for Ellington Credit is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The REIT and Equity Trust industry, to which Ellington Credit belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [9]

[Report Overview and Highlights](index=1&type=section&id=Report%20Overview%20and%20Highlights) [Conversion Update](index=1&type=section&id=Conversion%20Update) The company completed its conversion to a Delaware-domiciled closed-end fund focused on corporate CLOs on April 1, 2025, intending to operate as a RIC for tax purposes, and changed its fiscal year end to March 31 - Completed conversion to a closed-end fund focused on corporate CLOs on April 1, 2025, and will operate as a **Regulated Investment Company (RIC)**[3](index=3&type=chunk) - Post-conversion, the company liquidated its entire long Agency RMBS and short TBA positions[3](index=3&type=chunk)[6](index=6&type=chunk) - The fiscal year end has been changed to March 31, with the three-month period ended March 31, 2025, being a short fiscal year as a taxable C-Corporation[4](index=4&type=chunk) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) For Q1 2025, the company reported a net loss of **$7.9 million** and Adjusted Distributable Earnings of **$9.0 million**, while significantly increasing its CLO portfolio and reducing leverage Q1 2025 Key Financial Metrics | Metric | Value | Per Share | | :--- | :--- | :--- | | Net Income (Loss) | $(7.9) million | $(0.23) | | Adjusted Distributable Earnings | $9.0 million | $0.26 | | Book Value (as of Mar 31, 2025) | - | $6.08 | | Dividends (for the period) | - | $0.24 | Portfolio and Capital Allocation Changes (as of Mar 31, 2025 vs. Dec 31, 2024) | Metric | Mar 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | CLO Portfolio | $249.9 million | $171.1 million | | Capital Allocation to CLOs | 81% | 72% | - The debt-to-equity ratio decreased to **2.2:1**, and the net mortgage assets-to-equity ratio was reduced to **0.0:1**[8](index=8&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributed the net loss to macro-driven CLO price declines, expanded the CLO portfolio by **46%** in preparation for conversion, and plans to deploy capital into dislocated credit markets - CEO Laurence Penn attributed the quarterly net loss to macro challenges causing CLO price declines, rather than credit-specific concerns[5](index=5&type=chunk) - The CLO portfolio was expanded by **46%** during the quarter to **$250 million**, while the Agency RMBS portfolio was neutralized using net short TBA positions before being liquidated post-conversion[6](index=6&type=chunk) - The company's estimated net asset value per share as of April 30 was in the range of **$5.85 to $5.91**[6](index=6&type=chunk) - Management sees the timing of the conversion as advantageous, providing 'dry powder' to invest in a dislocated credit market with wider spreads and expanded opportunities[9](index=9&type=chunk) [Financial Results and Portfolio Composition](index=2&type=section&id=Financial%20Results%20and%20Portfolio%20Composition) [Portfolio of Long Investments](index=2&type=section&id=Portfolio%20of%20Long%20Investments) As of March 31, 2025, the total long investment portfolio increased to **$754.2 million**, driven by significant expansion in the Credit Portfolio, particularly CLOs, while the Agency Portfolio slightly decreased Portfolio Fair Value Comparison ($ in thousands) | Portfolio Segment | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Credit | $250,347 | $171,606 | | Total Agency | $503,894 | $512,309 | | **Total Investments** | **$754,241** | **$683,915** | [CLO Holdings](index=2&type=section&id=CLO%20Holdings) The CLO portfolio grew by **46%** to **$249.9 million** as of March 31, 2025, with capital allocation to CLOs increasing to **81%**, composed of both equity and mezzanine debt tranches CLO Portfolio Composition (March 31, 2025) | CLO Tranche | Fair Value ($M) | | :--- | :--- | | Equity Tranches | $164.4 | | Mezzanine Debt Tranches | $85.5 | | **Total** | **$249.9** | - The company aims to maintain a diversified portfolio of CLO equity and debt, with the majority expected to remain dollar-denominated[12](index=12&type=chunk) [Agency RMBS Holdings](index=2&type=section&id=Agency%20RMBS%20Holdings) Agency RMBS holdings slightly decreased to **$503.9 million**, with the company substantially increasing its net short TBA position to offset long holdings prior to conversion - Agency RMBS holdings decreased slightly from **$512.3 million** to **$503.9 million** quarter-over-quarter[13](index=13&type=chunk) - The company used a significantly increased net short TBA position to neutralize its Agency RMBS holdings prior to the conversion[13](index=13&type=chunk) [Leverage and Hedging](index=2&type=section&id=Leverage%20and%20Hedging) The company's leverage decreased, with the adjusted debt-to-equity ratio falling to **2.2:1**, and all interest rate hedges shifted to short TBA positions by quarter-end Leverage Ratio Comparison | Ratio | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt-to-Equity Ratio | 2.2:1 | 2.9:1 | | Net Mortgage Assets-to-Equity Ratio | 0.0:1 | 2.6:1 | - As of March 31, 2025, all interest rate hedges consisted of short TBA positions; the company no longer held any interest rate swap hedges[14](index=14&type=chunk)[15](index=15&type=chunk) [Operating Results and Performance Analysis](index=3&type=section&id=Operating%20Results%20and%20Performance%20Analysis) [Net Interest Margin and Adjusted Distributable Earnings](index=3&type=section&id=Net%20Interest%20Margin%20and%20Adjusted%20Distributable%20Earnings) The credit portfolio's net interest margin significantly increased to **11.13%**, while the Agency portfolio's decreased, and Adjusted Distributable Earnings per share slightly declined but covered dividends Net Interest Margin Comparison (Q1 2025 vs Q4 2024) | Portfolio | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Credit | 11.13% | 8.54% | | Agency | 2.29% | 3.24% | - Adjusted distributable earnings per share was **$0.26**, a slight decrease from **$0.27** in the previous quarter, but still exceeded dividends paid[16](index=16&type=chunk) Operating Results by Strategy (Total Profit/Loss, $ in thousands) | Strategy | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Total CLO | $(8,477) | $2,821 | | Total Agency RMBS | $2,875 | $(3,335) | | **Net Income (Loss)** | **$(7,870)** | **$(2,005)** | [CLO Performance](index=4&type=section&id=CLO%20Performance) The CLO strategy generated negative results due to mark-to-market losses and increased market volatility in March, with U.S. mezzanine tranches impacted by lower-quality loans and slower prepayments - The CLO strategy had negative results as mark-to-market losses surpassed net interest income and gains on credit hedges[22](index=22&type=chunk) - Market volatility increased in March, driven by concerns over tariffs and economic slowdown, which negatively pressured CLO prices in both the U.S. and Europe[19](index=19&type=chunk) - U.S. CLO mezzanine tranches were impacted by weakness in lower-quality loans and reduced deleveraging from slower prepayments[20](index=20&type=chunk) [Agency Performance](index=4&type=section&id=Agency%20Performance) The company's Agency portfolio generated positive results throughout the quarter, successfully navigating widening Agency RMBS yield spreads in March due to rising volatility - EARN's Agency portfolio generated positive results during each month of the period[24](index=24&type=chunk) - Agency RMBS yield spreads widened in March due to rising volatility related to uncertain tariff policies, leading to a negative excess return of **(0.07%)** for the U.S. Agency MBS Index for the quarter[23](index=23&type=chunk) [General and Administrative Expenses](index=4&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses increased quarter-over-quarter due to higher professional fees, compensation related to the conversion, and increased management fees from a larger capital base - G&A expenses increased due to higher professional fees and compensation related to the conversion, and higher management fees from a larger capital base[25](index=25&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) [Consolidated Statement of Operations (Unaudited)](index=6&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20OPERATIONS%20(UNAUDITED)) For Q1 2025, the company reported a net loss of **$(7.9) million** due to significant unrealized losses on securities and derivatives, despite **$9.2 million** in net interest income Statement of Operations Highlights (Q1 2025 vs Q4 2024, $ in thousands) | Line Item | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Total Net Interest Income | $9,247 | $6,142 | | Total Expenses | $2,582 | $2,269 | | Total Other Income (Loss) | $(14,541) | $(6,059) | | **Net Income (Loss)** | **$(7,870)** | **$(2,005)** | | **Net Income (Loss) Per Share** | **$(0.23)** | **$(0.07)** | [Consolidated Balance Sheet (Unaudited)](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEET%20(UNAUDITED)) As of March 31, 2025, total assets decreased to **$783.6 million**, total liabilities decreased to **$555.1 million**, while total shareholders' equity increased to **$228.5 million**, resulting in a book value per share of **$6.08** Balance Sheet Summary (As of Mar 31, 2025 vs. Dec 31, 2024, $ in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $783,557 | $824,092 | | Total Liabilities | $555,056 | $630,366 | | **Total Shareholders' Equity** | **$228,501** | **$193,726** | | **Book Value Per Share** | **$6.08** | **$6.53** | - The increase in shareholders' equity was supported by the issuance of **8,075,118** common shares under the at-the-market offering program during the quarter[35](index=35&type=chunk) [Reconciliation of Adjusted Distributable Earnings to Net Income (Loss)](index=8&type=section&id=Reconciliation%20of%20Adjusted%20Distributable%20Earnings%20to%20Net%20Income%20(Loss)) Adjusted Distributable Earnings (ADE), a non-GAAP measure, reconciles the **$(7.9) million** net loss to **$9.0 million** ADE for Q1 2025 by excluding unrealized gains/losses and non-recurring items - Adjusted Distributable Earnings is calculated by adjusting GAAP net income for items like net realized and unrealized gains/losses on securities and derivatives[36](index=36&type=chunk)[37](index=37&type=chunk) ADE Reconciliation (Q1 2025, $ in thousands) | Line Item | Amount | | :--- | :--- | | Net Income (Loss) | $(7,870) | | Adjustments (subtotal) | $16,829 | | **Adjusted Distributable Earnings** | **$8,953** | | **Adjusted Distributable Earnings Per Share** | **$0.26** | [Other Information](index=4&type=section&id=Other%20Information) [About Ellington Credit Company](index=4&type=section&id=About%20Ellington%20Credit%20Company) Ellington Credit Company is a non-diversified, closed-end fund externally managed by Ellington Management Group, L.L.C., focused on investing primarily in CLO mezzanine debt and equity tranches - The Fund is a non-diversified closed-end fund investing primarily in CLO mezzanine debt and equity tranches[26](index=26&type=chunk) [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) A conference call to discuss Q1 2025 financial results is scheduled for 11:00 a.m. Eastern Time on May 21, 2025, with an investor presentation available online - A conference call to discuss financial results is scheduled for 11:00 a.m. Eastern Time on May 21, 2025[27](index=27&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This report contains forward-looking statements subject to numerous risks and uncertainties, including changes in interest rates, market volatility, and regulatory changes, where actual results may vary materially - The release contains forward-looking statements subject to risks such as interest rate changes, market volatility, and our ability to adapt to the new regulatory regime post-conversion[28](index=28&type=chunk)

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Stock Ratings and Analyst Insights - Horizon Technology Finance Corporation (HRZN) has a dividend yield of 17.89%. Analyst Paul Johnson from Keefe, Bruyette & Woods maintained an Underperform rating and reduced the price target from $8 to $7.5, with an accuracy rate of 63%. Analyst Casey Alexander from Compass Point upgraded the stock from Sell to Neutral with a price target of $8.25, having an accuracy rate of 68% [7] - Ellington Credit Company (EARN) has a dividend yield of 17.78%. UBS analyst Douglas Harter maintained a Neutral rating and lowered the price target from $6.5 to $5.25, with an accuracy rate of 68%. JMP Securities analyst Mikhail Goberman reiterated a Market Perform rating, holding an accuracy rate of 67% [7] - AGNC Investment Corp. (AGNC) has a dividend yield of 16.38%. RBC Capital analyst Kenneth Lee maintained an Outperform rating and cut the price target from $11 to $10, with an accuracy rate of 62%. Wells Fargo analyst Donald Fandetti maintained an Overweight rating and reduced the price target from $11 to $10, having an accuracy rate of 71% [7] Group 2: Recent News and Financial Performance - Horizon Technology Finance reported first-quarter financial results, missing net and total investment income estimates [7] - Ellington Credit Company's Board of Trustees declared a monthly common dividend of $0.08 per share [7] - AGNC Investment posted positive quarterly earnings [7]

Group 1 - Ellington Credit Company has changed its mandate from a REIT (Real Estate Investment Trust) to a RIC (Registered Investment Company) [1] - The new focus of Ellington Credit Company is on investment strategies that align with the RIC structure [1]