Arlington Asset Management (AI) is a real estate investment trust that invests in mortgage-backed securities issued by both federal agencies and private parties. The company finances its activities through a combination of repurchase agreement financing, common stock issuance, preferred stock issuance, and unsecured (baby) bond issuance. All, but the repurchase agreements are publicly-traded investments with high dividend/coupon yields. If the company can sustain these payouts, they can represent a healthy return for income investors.
Source: Owner Spreadsheet/API with 9/26/2019 Pricing
To maintain its dividend payouts, Arlington must generate the cash flow necessary to