American homeowners send a mortgage payment every month, and if you have one, part of yours may end up with Orchid Island Capital. US housing agencies pack many home loans into mortgage-backed securities, bonds that pass the monthly payments on to their owners. Orchid buys these bonds, mostly built from 30-year mortgages, largely with borrowed money. It keeps the gap between the interest they pay and what that borrowing costs. An outside manager, Bimini Advisors, runs the portfolio.
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