Ellington’s risk management platform is designed to monitor and mitigate a wide range of inter-related risks. A dedicated risk oversight group leverages a diverse array of tools to quickly identify and respond to emerging risks. The risk oversight team is integrated into Ellington’s organizational structure to maximize interaction with the investment team.
Interest rate risk and credit risk are analyzed using proprietary models and are opportunistically hedged. Our sensitivity and stress analyses, alongside our modeling framework and extensive databases, help us quantify the impact of policy change and other event risks. Along with our legal and compliance controls and general monitoring framework, Ellington’s risk management platform helps make informed portfolio management decisions.