Ellington Credit Announces the Income Tax Treatment of its 2025 Distributions

Rhea-AI Impact

(Neutral)

Rhea-AI Sentiment

(Neutral)

Key Terms

c-corp financial

A C-corp is a standard legal form for a corporation that treats the company as a separate taxpayer and owner-protected entity; it shields owners from personal liability while the business itself pays income tax. For investors, that structure matters because it enables easy issuance and transfer of shares and access to outside capital, but profits can be taxed twice—once at the company level and again when distributed to shareholders.

regulated investment company financial

A regulated investment company is a type of pooled investment (like a mutual fund or ETF) that meets specific tax-law rules allowing it to pass most income, gains and losses directly to shareholders instead of being taxed at the company level. For investors this matters because it affects how distributions are taxed, how often income is paid, and the overall net return—think of it like a collective account that funnels earnings straight to owners rather than keeping profits inside a separate corporate layer.

02/02/2026 - 06:58 PM

OLD GREENWICH, Conn.--(BUSINESS WIRE)-- Ellington Credit Company (NYSE: EARN) (the "Fund") today announced that information regarding the federal income tax treatment of the distributions deemed paid in 2025 on the Fund's common shares has been posted to the Fund’s website, at https://www.ellingtoncredit.com/dividend-and-tax-information. The Fund operated as a taxable C-Corp from January 1, 2025 to March 31, 2025, and has operated as a regulated investment company since April 1, 2025.

About Ellington Credit Company

Ellington Credit Company is a non-diversified closed-end fund that seeks to provide attractive current yields and risk-adjusted total returns by investing primarily in corporate collateralized loan obligations ("CLOs"), with a focus on mezzanine debt and equity tranches. The Fund is externally managed and advised by an affiliate of Ellington Management Group, L.L.C., a leading fixed-income investment manager founded in 1994. The Fund benefits from Ellington’s extensive experience and deep expertise in portfolio management, credit analysis, and risk management.