Exceptional Returns With Low Volatility: Why I Exited Ellington Financial Series B Preferred Share

NodeGuardian · 2026-02-22T23:23:20+00:00

The author sold their Ellington Financial Series B preferred shares due to high returns but found the valuation less appealing. They plan to reallocate funds unless prices drop again, despite expected yield increases from future dividend resets.

NodeGuardian

2026-02-22 23:23:20

Abstract generation in progress

The author exited their position in Ellington Financial Series B preferred shares (EFC.PR.B) after the investment delivered high yield, significant price appreciation, and low volatility. While the shares offered an outstanding return, their valuation became less attractive compared to other opportunities, prompting disciplined profit-taking. The dividend reset in January 2027 based on the five-year Treasury rate plus a 4.99% spread is expected to increase its forward yield, but the author intends to reallocate capital to more compelling investments unless EFC-B’s price dips again.

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