Orchid Island Capital Inc invests in residential mortgage-backed securities (RMBS) throughout the US. These RMBS are supported by single-family residential mortgage loans and guaranteed by either the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or the Government National Mortgage Association, ensuring that principal and interest payments are secured.
The company’s investment portfolio comprises of two categories: traditional pass-through Agency RMBS, and structured Agency RMBS, which include collateralized mortgage obligations, interest-only securities, inverse interest-only securities, principal-only securities, and other types of structured Agency RMBS.
To optimize its returns and maintain tax exemption, Orchid Island Capital, Inc. employs a leveraged strategy to invest in RMBS. It also operates as a Real Estate Investment Trust (REIT), meaning it will not be subject to U.S. federal corporate income tax so long as it distributes all of its REIT taxable income (as defined in the Code) to its stockholders. The company is externally managed and advised by Bimini Advisors, LLC, a wholly-owned subsidiary of Bimini Capital Management, Inc., which is an investment advisor registered with the Securities and Exchange Commission.
By leveraging this specialized expertise in RMBS and REITs, Orchid Island Capital Inc is able to maximize returns on its investments and ensure that its stockholders are rewarded for their investments. Through strategic investments backed by reliable guarantees, the company is well-positioned to produce strong returns in the long term.