Ellington Credit Company — Cyborg Score 4/10

Mixed
Closed-end CLO funds

Strategic Profile

The company's primary investment objectives are to generate attractive current yields and risk-adjusted total returns by selecting investments expected to provide strong total return and sustainable earnings streams over a long-term horizon. The company takes a trading-oriented approach seeking to exploit pricing inefficiencies in the CLO market.

Cyborg Score Rationale

The company's NAV per share has declined 25% over the past year, and dividend coverage is currently adequate but net investment income below distributions indicates a dividend cut is likely. Operating cash flow may not be sufficient to safely service the company's debt.

Top Insights

  • Q4 FY 2026 (quarter ended March 31, 2026) reported NAV per share of $4.09 and GAAP net loss of $32.3 million or $(0.86) per share, though adjusted net investment income was $7.3 million
  • CLO portfolio reached $307.9 million fair value with a 12.5% GAAP yield and 16.6% projected yield as of March 2026
  • Launched ELLA, an 8.50% baby bond maturing in 2031 in 2026
  • Monthly common dividend of $0.08 per share declared for May 2026 and July 2026 payments

Named Competitors

  • Golub Capital BDC — Closed-end management company investing in CLOs and credit strategies
  • Ares Credit Opportunities — Global credit and CLO investor
  • Benefit Street Partners CLO Funds — Alternative asset manager specializing in CLO and credit investments

Recent Developments

  • (May 2026) Q4 FY 2026 results released showing $307.9M CLO portfolio and $4.09 NAV per share
  • (2026) Launched ELLA 8.50% baby bonds due 2031 and issued $54M of senior notes
  • (April 2024) Completed strategic rebranding from Ellington Residential Mortgage REIT to Ellington Credit Company
  • (June 2026) Maintained monthly dividend of $0.08 per share

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