Ellington Credit Q1 net investment income rises

The company expects net investment income to grow as excess liquidity is deployed.

Ellington Credit said current market dynamics favor active portfolio management and that long-term earnings potential is supported by portfolio rotation and trading capabilities.

Result drivers:

• Market recovery — Improved leveraged loan and credit markets supported gains in mezzanine debt and CLO equity.
• Portfolio repositioning — The company rotated out of lower-coupon, shorter-duration debt and into higher-coupon, wider-spread investments with stronger credit fundamentals.
• Trading and refinancings — Trading gains on mezzanine debt and refinancings of CLO equity enhanced near-term cash flows and long-term earnings power.

The current average analyst rating on the shares is hold, with 1 strong buy or buy, 3 hold, and no sell or strong sell recommendations.

The average consensus recommendation for the closed-end funds peer group is .