We intend to capitalize on current market opportunities by utilizing an opportunistic strategy that 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 a hybrid investment portfolio, consisting 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, CRTs, CMBS, and residential whole mortgage loans that we hold for appreciation and/or current income. We opportunistically mitigate our interest rate and prepayment risk and, to a lesser extent, credit risk, by using a variety of hedging instruments.
Ellington's continued emphasis on and development of proprietary MBS, interest rate, prepayment, and credit models, as well as other proprietary research and analytics, underscores the importance it places on a disciplined and analytical approach to fixed income investing. Our Manager uses Ellington's proprietary models to identify attractive assets, value these assets, monitor and forecast the performance of these assets, and (subject to maintaining our qualification as a REIT) opportunistically hedge our interest rate and prepayment risk and, to a lesser extent, credit risk.