Orchid Island Capital, Inc. is a mortgage real estate investment trust that focuses on investing in a diversified portfolio of agency residential mortgage-backed securities. The company seeks to generate income by capturing the interest rate spread between yields on mortgage assets and its cost of financing, primarily acquiring fixed-rate RMBS guaranteed by U.S. government agencies such as Fannie Mae, Freddie Mac and Ginnie Mae.
The trust employs leverage through repurchase agreements and short-term borrowings to enhance portfolio returns. Orchid Island Capital’s investment strategy emphasizes active management of duration, convexity and credit risk, with an external manager—Orchid Asset Management, LLC—overseeing day-to-day portfolio decisions, risk controls and asset allocation.
Headquartered in Dallas, Texas, Orchid Island Capital was established in 2015 to capitalize on opportunities in the U.S. residential mortgage markets. The company maintains a singular focus on agency-backed securities, avoiding exposure to non-agency or sub-prime RMBS, and adapts its holdings in response to shifts in interest rates and housing market dynamics.
The leadership team brings extensive experience in mortgage finance, structured products and risk management. Orchid Island Capital’s board and executive officers are composed of industry veterans with backgrounds in capital markets, banking and investment management, aligning their governance and operational practices with the interests of the company’s stockholders.
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