We intend to utilize an opportunistic strategy that we believe will enable us to generate attractive current yields and risk-adjusted total returns for our shareholders.
Our strategy utilizes an investment model that focuses on security selection and allocates capital to assets that balance a range of mortgage-related risks. We construct and actively manage our investment portfolio, comprised primarily of Agency RMBS and, to a lesser extent, non-Agency RMBS. We may also opportunistically acquire and manage other mortgage- and real estate-related assets, such as MSRs and residential whole mortgage loans. We expect to opportunistically mitigate our interest rate and prepayment risk using a variety of hedging instruments.
EARNâ€™s approach to investing in the mortgage-backed securities markets is highly disciplined and analytical. We concentrate primarily on the development of proprietary interest-rate and prepayment models, as well as other proprietary research and analytics.