(ORC) Orchid Island Capital - Ratings and Ratios

Orchid Island Capital, Inc. operates as a specialty finance company focused on investing in residential mortgage-backed securities (RMBS) in the U.S. The companys portfolio is centered on Agency RMBS, which are backed by single-family residential mortgage loans. These securities include traditional pass-through Agency RMBS, such as mortgage pass-through certificates and collateralized mortgage obligations (CMOs), as well as structured Agency RMBS like interest-only securities, inverse interest-only securities, and principal-only securities. This diversification within the RMBS market allows the company to manage risk and capitalize on different segments of the mortgage-backed securities arena.

As a real estate investment trust (REIT), Orchid Island Capital is structured to avoid corporate income tax on the portion of its net income distributed to shareholders, provided it meets the REIT requirement of annually distributing at least 90% of its taxable income. This tax-efficient structure is a key advantage for income-focused investors. Incorporated in 2010 and headquartered in Vero Beach, Florida, the company has established itself as a player in the mortgage REIT space, navigating the complexities of the U.S. housing market and interest rate fluctuations. Its strategic focus on Agency RMBS provides a layer of credit stability, as these securities are guaranteed by government-sponsored entities like Fannie Mae and Freddie Mac.

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