Orchid Island Capital announced net income of $16.5 million for Q4 2020. The company focused on maximizing returns by shifting its portfolio into lower coupon securities and leveraging the TBA dollar roll market. They also raised $36.1 million through an at-the-market program, which was accretive to earnings.
Orchid Island Capital reported a net income of $16.5 million, or $0.23 per common share, for Q4 2020.
The company generated a 4.0% economic gain on common equity for the quarter.
The portfolio was strategically shifted into lower coupon securities and shorter maturity securities to mitigate prepayment risks.
Orchid Island Capital expanded its use of the TBA dollar roll market to enhance returns.
While no explicit forward guidance was given the report indicates the company will likely continue to focus on managing prepayment risks on RMBS, and taking advantage of the TBA dollar roll market.
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