Ellington Credit: High Yield Is Not A Red Flag
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Ellington Credit is transitioning from a mortgage REIT to a closed-end fund focusing on CLOs, aiming for higher risk-adjusted returns. With a 15% dividend yield covered by earnings and trading at a discount to book value, it presents a buying opportunity.
December 23, 2024 | 7:30 pm
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Ellington Credit is transitioning to a closed-end fund focusing on CLOs, with a 15% dividend yield covered by earnings. It trades at a discount to book value, presenting a buying opportunity.
Ellington Credit's transition to a closed-end fund focusing on CLOs is a strategic move to enhance risk-adjusted returns. The 15% dividend yield, well-covered by earnings, is attractive for income investors. Trading at a discount to book value suggests potential for price appreciation as the transformation progresses.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100