ORC News & Events

Reports Q1 book value per share $7.08. Commenting on the first quarter results, Robert Cauley, chairman and CEO, said, "On February 28, 2026, the markets turned sharply when war broke out in the Middle East after Israel and the United States attacked Iran. Up to that point, the Agency RMBS market was performing very well, the catalyst being a pronouncement by President Trump on January 8, 2026 that the GSEs would seek to buy $200 billion of Agency RMBS in an effort to drive mortgage rates down and the affordability of housing higher. Interest rate volatility continued to decline, as it has since April of 2025, supportive of the sector as well. Away from the mortgage market, there were troubling signs in the economy as private credit concerns mounted, artificial intelligence began to emerge as a significant threat to software developers and many tech firms, previously the leaders of market performance over the last year or so, sold off dramatically. Interest rates, particularly the 10-year U.S. Treasury, declined in yield over the course of February, falling below 4% and mortgage rates declined towards 6%. Prepayment fears mounted quickly, and in fact speeds did increase dramatically in March. These later developments began to erode the strong performance of the sector triggered by the President's announcement on January 8, 2026."

Reports Q4 book value per share $7.54. Commenting on the fourth quarter results, Robert Cauley, chairman and CEO, said, "The market conditions of the fourth quarter of 2025 were very conducive for the Agency RMBS market and Orchid. Orchid generated a 7.8% return for the fourth quarter of 2025. The Agency RMBS sector performed well during the quarter, as interest rates were stable, associated interest rate implied volatility was low as well and the Federal Reserve delivered two interest rate cuts during the quarter. For reference, the ICE Data Indices Agency RMBS return for the fourth quarter of 2025 was 1.6% and the excess return versus comparable duration swaps was 1.3%. For the year ended December 31, 2025, Orchid generated an 11.0% return while the Agency RMBS index generated a return of 8.3% and an excess return versus comparable duration swaps of 2.6%."