- Nearing the end of the day at the JMP Financial Services and Real Estate Conference, attendees get a two-fer, with Michael Vranos and Lawrence Penn presenting for both Ellington Financial (EFC -0.1%) and Ellington Residential (EARN -1.8%).
- Webcast and presentation slides
- "We are religious interest rate hedgers," says Penn (the CEO of both). Our edge, he says, is not in predicting the direction of interest rates. He notes EFC lost just 1% of book value in its agency portfolio and EARN (which is strictly agency MBS) lost only 3% ... "orders of magnitude" less than the company's industry peers.
- EFC hedges credit as well, says Penn, and he notes the company made money during brutally tough years - 2008/09 and 2011 - for credit.
- Previously: Mortgage REITs slip amid investor presentations