June 30 book value of $18.57 compares to $19.65 on March 31. Much of the decline was due to a widening of spreads, but - going forward - this gives agency MBS a much "higher quality" net interest margin, says the company, as prepayment risk and policy risk are "substantially reduced." Management spent the quarter deploying the vast majority of its IPO proceeds into these better spreads.
The board authorizes a $10M share repurchase program.
EARN no trades premarket, but one could expect at least some of the stock's now 15.2% discount to book value to evaporate today.
EARN is the REIT vehicle run by the managers of Ellington Financial (EFC).