Ellington Credit Company

What Ellington Credit Company does

Ellington Credit Company (NYSE: EARN) is a non-diversified, externally managed, publicly traded closed-end investment company registered under the Investment Company Act of 1940. The fund invests across the CLO capital structure with a primary focus on mezzanine debt and equity tranches, while also opportunistically deploying capital into CLO warehouse/loan accumulation facilities and corporate credit assets. The vehicle is advised by Ellington Credit Company Management LLC, an SEC-registered investment adviser and affiliate of Ellington Management Group, L.L.C., which manages $22.2 billion in assets as of March 31, 2026. The firm applies a trading-oriented approach to capture pricing inefficiencies in CLO markets rather than relying on a buy-and-hold posture, supported by credit hedges and disciplined liquidity management during stress events.

The core technology underpinning the strategy is the proprietary ELLiN portfolio management system, which unifies trading, research, risk management, finance, operations, accounting, and compliance on a single platform, complemented by a dedicated investment surveillance database and analytics stack for underwriting and ongoing portfolio monitoring. As of March 31, 2026 the fund held a CLO portfolio with fair value of $307.9 million, a weighted-average GAAP yield of 12.5%, net asset value per share of $4.09, and 37.6 million common shares outstanding. Earnings flow to shareholders primarily through a $0.08 monthly dividend (in place since mid-2022) supplemented by an optional Dividend Reinvestment Plan, while the fund pays advisory fees to its manager; principal counterparties include Piper Sandler, Lucid Capital Markets, A.G.P./Alliance Global Partners, B. Riley Securities, Clear Street, Muriel Siebert, and Wedbush on the recent $54 million 2031 senior unsecured notes offering.

Name

Ellington Credit Company

Legal name

Ellington Credit Company

Website

https://ellingtoncredit.com

Company type

Public

Founded year

2012

Operating status

Operating

Headcount range

51–100 employees

Short description

Ellington Credit Company (NYSE: EARN) is a publicly traded, externally managed closed-end fund that invests primarily in CLO mezzanine debt and equity tranches to generate current yield and risk-adjusted total returns for its shareholders.

Ownership category

akta.pro rank

Product category

Closed-End Investment Fund (CLO-focused)

NAICS

Portfolio Management and Investment Advice (523940), Portfolio Management and Investment Advice (52394), Finance and Insurance (52)

SIC

Asset-Backed Securities (6189), Investment Advice (6282)

akta.pro primary industry

Leveraged Loans & CLOs (FSAAAHAF)

akta.pro secondary industries

Collateralized Loan Obligations (CLO) (FSACACAC), Private Credit — Structured Credit (CLOs, ABS, Private Securitizations) (FSAHAJAH)

Keywords

• CLO investments
• Closed-end fund
• Structured credit
• Mezzanine debt
• Corporate credit

Headquarters

HQ city

Old Greenwich

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Investment Returns on CLO Portfolio: Ellington Credit generates returns through interest income from CLO debt and equity investments, realized gains from trading CLO securities, and unrealized appreciation/depreciation on the investment portfolio. Primary investment focus is on mezzanine debt and equity tranches of CLOs.
2. Management and Advisory Fees: The Fund pays advisory fees to Ellington Credit Company Management LLC, an affiliate of Ellington Management Group, for investment management services. The fund is externally managed.
3. Dividend Income to Shareholders: The fund distributes dividends monthly at $0.08 per share, sourced from net investment income, realized capital gains, and return of capital. Dividend payments represent the primary return mechanism for common shareholders.

Pricing tiers

Distribution channels2 records

Marketing channels6 records

Core offering

Ellington Credit Company is a publicly traded closed-end management investment company that invests primarily in the mezzanine debt and equity tranches of Collateralized Loan Obligations (CLOs), along with related corporate credit assets and CLO warehouse facilities. The fund seeks to generate attractive current yields and risk-adjusted total returns for shareholders through a trading-oriented approach, supported by proprietary risk management systems and selective use of credit hedges.

Product overview

Ellington Credit Company (NYSE: EARN) is a non-diversified closed-end investment fund that operates as a single, unified investment product focused on generating attractive current yields and risk-adjusted total returns through CLO investments. The fund specializes in CLO mezzanine debt and equity tranches, supported by proprietary technology infrastructure including the 'ELLiN' portfolio management system. The company also utilizes credit hedges and liquidity management protocols for risk management. All investment activities are coordinated through Ellington Credit Company Management LLC, an SEC-registered investment adviser and affiliate of Ellington Management Group.

Differentiator

Problem solved

Functional benefit

Products and services

• CLO Mezzanine Debt Investments Investment in mezzanine debt tranches of Collateralized Loan Obligations (CLOs), which offer attractive yield profiles relative to similarly-rated corporate credit investments, with credit enhancement allowing structures to withstand significant loss levels. Targeted at shareholders seeking current income and risk-adjusted total returns.
• CLO Equity Investments Investment in equity tranches of CLOs, offering an attractive return profile including strong current carry, with CLO equity vintages between 2003–2023 generating a median unlevered IRR of approximately 11%.
• CLO Warehouse Facilities / Loan Accumulation Facilities (LAFs) Short- to medium-term facilities provided by banks that serve as placement agents for new issue CLO transactions, financing acquisition of corporate credit assets expected to form part of a future CLO portfolio.
• Corporate Debt and Equity Investments Acquisition of corporate debt (senior secured corporate loans, secured and unsecured corporate bonds) and corporate equity assets (common equity, preferred equity, warrants), typically in conjunction with CLO liquidations or opportunistically on an outright basis.
• Monthly Common Dividend Distribution Monthly distribution of $0.08 per share to common shareholders, sourced from net investment income, realized capital gains, and return of capital.
• Dividend Reinvestment Plan (DRP) Automatic reinvestment of cash distributions for shareholders unless they elect to receive cash prior to the record date. Enrollment is handled through the Fund's transfer agent or via brokers.

Quantifiable outcome

• 11% median unlevered IRR for CLO equity vintages 2003-2023
• +3 more outcomes

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Three partnerships are on record, tiered core.

• Equiniti Trust Company, LLCcoreOthersServes as the transfer agent for Ellington Credit Company. Handles shareowner records, dividend distributions, and shareholder communications. Located in Newark, NJ.
• PricewaterhouseCoopers LLPcoreOthersServes as the independent auditor for Ellington Credit Company, providing annual audit and financial statement review services.
• Dechert LLPcoreOthersServes as legal counsel for Ellington Credit Company, providing legal advice on securities matters, regulatory compliance, and corporate governance.

Scale indicators9 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Eagle Point Credit Company: Publicly traded closed-end management investment company focused on CLO equity and debt securities. Direct peer given nearly identical investment mandate (CLO mezzanine/equity), externally managed structure, and listed-closed-end fund delivery model targeting retail income investors.
• Priority Income Fund: Non-traded private BDC focused on CLO debt and equity tranches. Comparable in CLO-focused investment strategy and external sponsorship structure, though it targets non-traded rather than listed-fund investors.
• Carlyle Credit Income Fund: Closed-end fund sponsored by Carlyle focused on CLO debt and equity investments. Directly comparable as a sponsor-backed, publicly listed CLO-focused fund with similar yield and total-return objectives.
• Oxford Square Capital Corp. Closed-end fund investing primarily in CLO debt and equity tranches. Closely comparable in product mix, NAV-oriented dividend distribution model, and target retail yield-seeking investor base.
• OFS Credit Company: Publicly traded closed-end fund managed by OFS Capital that invests in CLO debt and equity. Directly comparable in CLO-focused mandate, externally advised structure, and monthly dividend-oriented shareholder return model.

Broad incumbents

• WhiteHorse Finance: Externally managed BDC that invests in CLO securities as part of a broader specialty finance portfolio. Comparable in CLO exposure and externally managed listed-fund structure, though its primary focus is direct lending rather than pure CLO exposure.
• Saratoga Investment Corp: Publicly traded BDC with significant CLO holdings alongside direct lending. Comparable as a specialty finance listed-fund with CLO allocation, though diversified across direct lending investments.
• Ares Capital Corp: Largest publicly traded BDC with diversified specialty finance exposure including CLO-related investments. Comparable as a publicly traded yield-oriented credit vehicle, though materially larger and more diversified across asset classes.

Emerging players

• Great Elm Capital Corp: Externally managed specialty finance company with significant CLO debt and equity exposure. Comparable as a smaller, externally advised specialty credit vehicle targeting yield-oriented investors.

Others

• Ellington Financial Inc. Sister company under the Ellington Management Group umbrella, structured as a diversified specialty finance vehicle. Comparable through shared sponsorship, overlapping management, and similar investor-relations infrastructure, though its investment mandate is materially broader than EARN's pure CLO focus.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/ellington-management-group

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Ellington Credit Company