secwatch.observer — SEC 8-K summary
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Issuer:     Ellington Credit Co (EARN)
CIK:        0001560672
Form:       8-K
Filed at:   2024-06-25T23:59:59+00:00
Accession:  0001560672-24-000051
Event type: other_material
Sentiment:  neutral
Materiality: 0.55
Item codes: 1.01, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Ellington Credit enters new management agreement with performance fee; CLO portfolio rises to $85M
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- New management agreement effective July 1: base fee switches from 1.50% of Shareholders' Equity to 1.50% of Net Asset Value.
- Performance fee introduced at 17.5% of quarterly Pre-Fee Net Investment Income above 2% hurdle (8% annual); fully waived through 2024.
- CLO portfolio grew to $85M as of June 24, 2024, from $45.1M at March 31, 2024, accelerating shift from agency MBS.
- Performance fee calculated per quarter with no clawback or carryforward, potentially incentivizing higher risk or leverage.
- Board continues strategic transformation to CLO focus and conversion to a closed-end investment company.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1560672/000156067224000051/0001560672-24-000051-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1560672/000156067224000051/earn-20240625.htm
  HTML page:      https://secwatch.observer/filing/0001560672-24-000051

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