Orchid Island Capital is a specialty finance REIT that invests exclusively in Agency RMBS — mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. Because the government guarantees eliminate credit risk, Orchid focuses its risk management on interest rate risk, prepayment risk, and funding risk. Orchid invests in two types of Agency RMBS: pass-through securities, where investors receive a share of principal and interest from a pool of mortgage loans, and structured securities (IOs, IIOs, and POs), which have distinct cash flow profiles based on prepayment speeds. Orchid's business model is straightforward: borrow short-term via repurchase agreements, pledge Agency RMBS as collateral, and earn the spread between asset yields and funding costs, typically running leverage of 7x–8x equity. The portfolio is concentrated in "specified pools" — loans with characteristics like low balances, credit-impaired borrowers, or geographic barriers that slow prepayments, providing more predictable cash flows than generic TBA securities. Orchid has no employees and is externally managed by Bimini Advisors, a subsidiary of Bimini Capital Management, which handles all portfolio management, trading, and administration for a tiered management fee. As a REIT, Orchid distributes substantially all taxable income as dividends, paid monthly.