Orchid Island Capital is a mortgage REIT that invests in Agency residential mortgage-backed securities, including traditional pass-through securities and structured products like interest-only and principal-only securities backed by government-sponsored enterprises. The company generates income by earning net interest margins on its leveraged and unleveraged RMBS holdings, funding purchases through repurchase agreements while managing interest-rate and prepayment risks through hedging strategies and careful security selection. As a REIT, the company distributes substantially all taxable income to shareholders on a monthly basis and is externally managed by Bimini Advisors, competing with other REITs, insurance companies, and financial institutions for opportunities in the residential mortgage market.