EFC

Ellington Financial buys and holds mortgage-backed securities, which are investments made up of pools of home loans bundled together. These securities come from various types of mortgages, including government-backed loans and private loans. The company also invests in commercial mortgages, consumer loans, and other debt-related investments. As a real estate investment trust, it is required to pay out at least 90% of its taxable income to shareholders as dividends.