View Filing Data

Receivable for securities sold

31,266

^[1]

15,963

Interest receivable

3,943

Other assets

367

360

Total Assets

1,496,967

32,156

LIABILITIES

Payable for securities purchased

1,215,696

^[1]

77,136

Due to brokers

27,887

Preferred shares, par value $0.01 per share, 100,000,000 shares authorized; (0 shares issued and outstanding, respectively)

2,980

^[1]

Dividend payable

1,279

Accrued expenses

1,360

1,076

Management fee payable

703

116

Interest payable

353

Total Liabilities

1,327,394

1,192

SHAREHOLDERS' EQUITY

Common shares, par value $0.01 per share, 500,000,000 shares authorized; (9,133,378 and 1,633,378 shares issued and outstanding, respectively)

Additional paid-in-capital

181,061

32,674

Accumulated deficit

(11,579)

(1,726)

Total Shareholders' Equity

169,573

30,964

Total Liabilities and Shareholders' Equity

$ 1,496,967

$ 32,156

[1]	In the Company's Consolidated Balance Sheet, all balances associated with the repurchase agreements and derivative instruments are presented on a gross basis.

CONSOLIDATED BALANCE SHEET CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares	Jun. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	9,133,378	1,633,378
Common stock, shares outstanding	9,133,378	1,633,378
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

CONSOLIDATED STATEMENT OF OPERATIONS - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2013

INTEREST INCOME

Interest income

$ 4,310

$ 4,592

Interest expense

(525)

Total net interest income

3,785

4,067

EXPENSES

Management fees

703

823

Professional fees

237

268

Other operating expenses

421

466

Total expenses

1,361

1,557

OTHER INCOME (LOSS)

Net realized losses on real estate securities

(3,006)

(2,117)

Change in net unrealized losses on real estate securities

8,376

^[1]

8,376

(45,784)

(45,629)

Change in net unrealized gains on derivative instruments

28,286

^[1]

28,286

Total other loss

(12,128)

(11,084)

NET LOSS

$ (9,704)

$ (8,574)

NET LOSS PER COMMON SHARE

Basic (in dollars per share)

$ (1.55)

$ (2.17)

[1]	The Company did not have derivative positions on or prior to March 31, 2013, and as a result net realized and unrealized gains and losses for three month period ended June 30, 2013 are the same as for the six month period ended June 30, 2013.

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - 6 months ended Jun. 30, 2013 - USD ($)
$ in Thousands

Total

Common Shares [Member]

Preferred Stock [Member]

Additional Paid-in Capital [Member]

Accumulated (Deficit) Earnings [Member]

Issuance of common shares, shares

7,500,000

Issuance of common shares, Value

$ 150,000

$ 75

$ 0

$ 149,925

Offering costs

(1,538)

Dividends declared

^[1]

$ (1,279)

Common Stock, Dividends, Per Share, Declared

$ 0.14

BALANCE, December 31, 2012 (in shares) at Dec. 31, 2012

1,633,378

BALANCE, December 31, 2012 at Dec. 31, 2012

$ 30,964

$ 16

$ 0

32,674

(1,726)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net loss

(8,574)

BALANCE, June 30, 2013 (in shares) at Jun. 30, 2013

9,133,378

BALANCE, June 30, 2013 at Jun. 30, 2013

$ 169,573

$ 91

$ 0

$ 181,061

$ (11,579)

[1]	For the six month period ended June 30, 2013 a dividend of $0.14 per share was declared.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Number 51
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Number 130
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

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-Name Emerging Issues Task Force (EITF)
-Number 87-21
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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CONSOLIDATED STATEMENT OF CASH FLOWS $ in Thousands	6 Months Ended
CONSOLIDATED STATEMENT OF CASH FLOWS $ in Thousands	Jun. 30, 2013 USD ($)
Cash flows provided by (used in) operating activities:
Net loss	$ (8,574)
Reconciliation of net loss to net cash provided by (used in) operating activities:
Net realized losses on real estate securities	2,117
Change in net unrealized losses on real estate securities	45,629
Net realized gains on derivative instruments	(8,376)
Change in net unrealized gains on derivative instruments	(28,286)
Amortization of premiums and accretion of discounts (net)	719
(Increase) decrease in assets:
Due from brokers	(41,604)
Interest receivable	(3,904)
Other assets	(367)
Increase (decrease) in liabilities:
Due to brokers	27,887
Accrued expenses	(212)
Interest payable	353
Management fees payable	587
Net cash used in operating activities	(14,031)
Cash flows provided by (used in) investing activities:
Purchases of real estate securities	(1,596,310)
Proceeds from sale of real estate securities	266,465
Principal repayments of real estate securities	4,663
Proceeds from investments sold short	2,042
Repurchase of investments sold short	(2,036)
Proceeds from disposition of derivative instruments	11,437
Purchase of derivative instruments	(3,060)
Payments made on reverse repurchase agreements	(4,098)
Proceeds from reverse repurchase agreements	4,098
Net cash used in investing activities	(1,316,799)
Cash flows provided by (used in) financing activities:
Offering costs paid	(682)
Proceeds from issuance of common shares	150,000
Borrowings under repurchase agreements	1,977,370
Repayments of repurchase agreements	(761,674)
Cash provided by financing activities	1,365,014
NET INCREASE IN CASH AND CASH EQUIVALENTS	34,184
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	18,161
CASH AND CASH EQUIVALENTS, END OF PERIOD	52,345
Supplemental disclosure of non-cash activity:
Interest paid	$ 171

Organization and Investment Objective	6 Months Ended
Organization and Investment Objective	Jun. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Investment Objective	Organization and Investment Objective Ellington Residential Mortgage REIT ("EARN") was formed as a Maryland real estate investment trust ("REIT") on August 2, 2012, and commenced operations on September 25, 2012. EARN conducts its business through its wholly owned subsidiaries, EARN OP GP LLC (the "General Partner") and Ellington Residential Mortgage LP (the "Operating Partnership"), which were formed as a Delaware limited liability company and a Delaware limited partnership, respectively, on July 31, 2012 and commenced operations on September 25, 2012. The Operating Partnership conducts its business of acquiring, investing in, and managing residential mortgage-related and real estate-related assets through its wholly owned subsidiaries, EARN Securities LLC, EARN TRS LLC, EARN Mortgage LLC, and EARN CMO LLC, a wholly owned subsidiary of EARN Mortgage LLC, which were each formed as Delaware limited liability companies on July 31, 2012 and commenced operations on September 25, 2012. EARN, the General Partner, the Operating Partnership, and their consolidated subsidiaries are hereafter defined as the "Company." On May 1, 2013, the Company priced an initial public offering of its common shares, pursuant to which it sold 6,450,000 shares to the public at a price of $20.00 per share. Concurrent with the initial public offering, the Company completed a private placement with its initial shareholders which resulted in gross proceeds to the Company of $21.0 million and the issuance of 1,050,000 shares at a price of $20.00 per share. No further capital commitments from the initial shareholders remain as a result of this private placement. Total gross proceeds from the initial public offering and concurrent private placement were $150.0 million. Proceeds, net of offering costs, were approximately $148.5 million. The Company acquires and manages Agency and non-Agency, both investment grade and non-investment grade, residential mortgage-backed securities ("RMBS"), including Agency pools and Agency and non-Agency collateralized mortgage obligations ("CMOs"). Collectively, all of these asset types are referred to as real estate securities. The Company may also acquire and manage mortgage servicing rights, residential whole mortgage loans, and other mortgage- and real estate-related assets. The Company may also invest in other instruments including, but not limited to, forward-settling To-Be-Announced Agency pass-through certificates ("TBAs"), interest rate swaps and swaptions, U.S. Treasury securities, Eurodollar and U.S. Treasury futures, and cash equivalents. The Company's targeted investments may range from unrated (first loss) securities to AAA senior securities. Ellington Residential Mortgage Management LLC (the "Manager") serves as the Manager to the Company pursuant to the terms of the Amended and Restated Management Agreement effective as of September 24, 2012 (the "Management Agreement"). The Manager is an affiliate of Ellington Management Group, L.L.C. ("EMG"), an investment management firm that is registered as an investment adviser. In accordance with the terms of the Management Agreement and the Services Agreement, as discussed in Note 10, the Manager is responsible for administering the Company's business activities and day-to-day operations, and performs certain services, subject to oversight by the Board of Trustees. The Company has not elected and does not intend to elect to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"), for the period September 25, 2012 (Commencement of Operations) through December 31, 2012 or for the short taxable period January 1, 2013 through April 30, 2013. The Company made the election to be taxed as a corporation effective for the short taxable period May 1, 2013 through December 31, 2013. The Company intends to make the election to be taxed as a REIT when it files its tax return for the short taxable period May 1, 2013 through December 31, 2013.

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Number 94-6
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-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
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Significant Accounting Policies

Significant Accounting Policies

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

(A) Basis of Presentation: The Company's unaudited interim consolidated financial statements have been prepared in conformity with generally accepted accounting principles ("GAAP") in the United States of America, for interim financial information. Entities in which the Company has a controlling financial interest, through ownership of the majority of the entities' voting equity interests, or through other contractual right that give the Company control, are consolidated by the Company. All inter-company balances and transactions have been eliminated. The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and those differences could be material. Interim results are not necessarily indicative of the results that may be expected for the entire fiscal year.

(B) Valuation: The Company applies Accounting Standards Codification ("ASC") ASC 820-10, Fair Value Measurement and Disclosures ("ASC 820-10"), to its holdings of financial instruments. ASC 820-10 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:


•	Level 1—inputs to the valuation methodology are observable and reflect quoted prices (unadjusted) for identical assets or liabilities in active markets,


•	Level 2—inputs to the valuation methodology other than quoted prices included in Level 1 are observable for the asset or liability, either directly or indirectly, and


•	Level 3—inputs to the valuation methodology are unobservable and significant to the fair value measurement.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities.

(C) Accounting for Real Estate Securities: Investments in real estate securities are recorded on trade date. The Company has chosen to make a fair value election pursuant to ASC 825-10, Financial Instruments, for its real estate securities portfolio. Electing the fair value option allows the Company to record changes in fair value in the Consolidated Statement of Operations, which, in management's view, more appropriately reflects the results of operations for a particular reporting period as all securities activities will be recorded in a similar manner. As such, the real estate securities are recorded at fair value on the Consolidated Balance Sheet and the period change in fair value is recorded in current period earnings on the Consolidated Statement of Operations as a component of Change in net unrealized gains (losses) on real estate securities.

Realized gains or losses on sales of real estate securities are included in Net realized gains (losses) on real estate securities on the Consolidated Statement of Operations, and are recorded at the time of disposition. The cost of positions sold is calculated based on identified cost. Principal write-offs are generally treated as realized losses.

(D) Interest Income: The Company accretes market discounts and amortizes market premiums on debt securities using the effective yield method. Accretion of market discount and amortization of market premiums requires the use of a significant amount of judgment and the application of several assumptions including, but not limited to, prepayment assumptions and default rate assumptions, which are evaluated quarterly. The Company's accretion of discounts and amortization of premiums for U.S. federal and other tax purposes is likely to differ from the financial accounting treatment of these items as described above.

(E) Cash and Cash Equivalents: Cash and cash equivalents include cash and short term investments with original maturities of three months or less at the date of acquisition. Cash equivalents are recorded at cost plus accrued interest, which approximates fair value. Cash accounts are maintained with financial institutions and these balances generally exceed insured limits.

(F) Due from brokers/Due to brokers: Due from brokers and Due to brokers accounts on the Consolidated Balance Sheet includes collateral received or paid from counterparties along with receivables and payables for open and or closed derivative positions.

(G) Financial Derivatives: The Company may enter into various types of financial derivatives subject to certain restrictions, including restrictions associated with qualifying as a REIT, when the company elects REIT tax status, and investment guidelines.

Swaps: The Company may enter into interest rate swaps, which are contractual agreements whereby one party pays a floating rate of interest on a notional principal amount and receives a fixed rate on the same notional principal, or vice versa, for a fixed period of time.

The Manager does not intend to operate its non-Agency RMBS investment strategy on a credit hedged basis; however, the Company may opportunistically enter into short positions using credit default swaps to protect against adverse credit events with respect to the Company's non-Agency RMBS. The Company may use credit default swaps to hedge non-Agency RMBS credit risk by buying protection on a single non-Agency RMBS or by buying protection on a basket or index of non-Agency RMBS assets. The Company may also enter into credit default swaps on various mortgage-backed securities, or "MBS" indices and derivative contracts for hedging purposes referencing the unsecured corporate credit, or the equity of, certain corporations. However, this strategy is subject to qualifying and maintaining EARN's qualification as a REIT and maintaining EARN's exclusion from regulation as an investment company under the Investment Company Act.

Upfront payments paid/received by the Company on open swap contracts are initially recorded as an asset or liability and are recorded as a realized gain or loss on the termination date. During the term of swap contracts, changes in fair value are recognized as unrealized gains or losses on the Consolidated Statement of Operations. Periodic payments or receipts required by swap agreements are recorded as unrealized gains or losses when accrued and realized gains or losses when received or paid. The Company may be required to deliver or receive cash or securities as collateral upon entering into swap transactions. When a contract is terminated, the Company will realize a gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Company's basis in the contract, if any.

As of June 30, 2013, the Company's swap contracts were predominantly governed by International Swaps and Derivatives Association ("ISDA") trading agreements, which are separately negotiated agreements with dealer counterparties. Changes in the relative value of the swap transactions may require the Company or the counterparty to post or receive additional collateral. Typically, a collateral payment or receipt is triggered based on the net change in the value of all contracts governed by a particular ISDA trading agreement. Cash collateral received from or paid to counterparties is included in Due to brokers and Due from brokers, respectively. As of June 30, 2013, certain of the Company's swaps had been traded subject to settlement through a clearinghouse.

TBA Securities: The Company may transact in the TBA RMBS market. A TBA position is a forward contract for the purchase ("long position") or sale ("short position") of Agency RMBS at a predetermined price, face amount, issuer, coupon, and maturity on an agreed-upon future delivery date. For each TBA contract and delivery month, a uniform settlement date for all market participants is determined by the Securities Industry and Financial Markets Association. The specific Agency RMBS to be delivered into the contract at the settlement date, are not known at the time of the transaction. The Company typically does not take delivery of TBAs, but rather enters into offsetting transactions and settles the associated receivable and payable balances with its counterparties. The Company primarily uses TBAs to hedge interest rate risk, but from time to time it also holds net long positions in certain TBA securities as a means of acquiring exposure to Agency RMBS.

TBAs are accounted for as derivative instruments. The difference between the contract price and the fair value of the TBA position as of the reporting date is reported in Change in net unrealized gains (losses) on derivative instruments, in the Consolidated Statement of Operations. The Company estimates the fair value of TBA positions based on similar methods used to value real estate securities. Upon settlement of the TBA contract, the realized gain (loss) on the TBA contract is equal to the net cash amount received (paid).

Futures Contracts: A futures contract is an agreement between two parties to buy and sell an asset for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by marking-to-market to reflect the current market value of the contract. Variation margin payments are made or received periodically, depending upon whether unrealized losses or gains are incurred. When the contract is closed, the Company records a realized gain or loss equal to the difference between the proceeds of the closing transaction and the Company's basis in the contract.

Options: The Company may purchase put, call, straddle, or other similar options such as swaptions. When the Company purchases an option, an amount equal to the premium paid is recorded as an asset and is subsequently marked-to-market. Premiums paid for purchasing options that expire unexercised are recognized on the expiration date as realized losses on the Consolidated Statement of Operations. If an option is exercised, the premium paid is subtracted from the proceeds of the sale or added to the cost of the purchase to determine whether the Company has realized a gain or loss on the related investment transaction. When the Company enters into a closing transaction, the Company will realize a gain or loss depending upon whether the amount from the closing transaction is greater or less than the premium paid.

The Company may write put, call, straddle, or other similar options such as swaptions. When the Company writes an option, an amount equal to the premium received is recorded as a liability and is subsequently marked-to-market. Premiums received for writing options that expire unexercised are recognized on the expiration date as realized gains on the Consolidated Statement of Operations. If an option is exercised, the premium received is subtracted from the cost of the purchase or added to the proceeds of the sale to determine whether the Company has realized a gain or loss on the related investment transaction. When the Company enters into a closing transaction, the Company will realize a gain or loss depending upon whether the amount from the closing transaction is greater or less than the premium received.

The Company may be required to deliver or receive cash or securities as collateral upon entering into certain option transactions. Movements in the value of the option transactions may require the Company or the counterparty to post additional collateral.

(H) Repurchase Agreements and Reverse Repurchase Agreements: The Company may enter into repurchase agreements with third-party broker-dealers, whereby it sells securities under agreements to repurchase at an agreed upon price and date. The Company also enters into reverse repurchase agreement transactions with third-party broker-dealers, whereby it purchases securities under agreements to resell at an agreed upon price and date. Interest on the value of repurchase and reverse repurchase agreements issued and outstanding is based upon market rates at the time of issuance. The Company accounts for repurchase agreements as collateralized borrowings. When the Company enters into a repurchase agreement, the lender establishes and maintains an account containing cash transferred and securities having a value not less than the repurchase price, including accrued interest, of the repurchase agreement. Repurchase and reverse repurchase agreements that are conducted with the same counterparty can be reported on a net basis if they meet the requirements under the authoritative guidance. Repurchase agreements and reverse repurchase agreements are carried at their contractual amounts, which approximate fair value.

(I) U.S. Treasury Securities: The Company may purchase or sell short U.S. Treasury securities and U.S. Treasury futures contracts to help mitigate the potential impact of changes in interest rates on the performance of its portfolio. The Company may borrow securities under reverse repurchase agreements to cover short sales of U.S. Treasury securities. The Company accounts for these as securities borrowing transactions and recognizes an obligation to return the borrowed securities at fair value on the Consolidated Balance Sheet based on the value of the underlying borrowed securities as of the reporting date.

(J) Organizational Expenses: Organizational expenses are expensed as incurred. Organizational expenses consisted mainly of legal fees.

(K) Offering Costs/Deferred Offering Costs: Offering costs are charged against shareholders' equity. As of December 31, 2012, cumulative costs associated with the Company's public offering of common shares were deferred. At the closing of the common share offering, in May 2013, these deferred offering costs were offset against the proceeds of the offering. Deferred offering costs consist principally of legal, accounting, printing, and other fees associated with the offering.

(L) Manager Compensation: The Management Agreement provides for the payment of a management fee to the Manager. The management fee is accrued and expensed during the period that the management services are performed. For a more detailed discussion on the fees payable under the Management Agreement see Note 8.

(M) Share Based Compensation: The Company will apply the provisions of ASC 718, Compensation—Shares Compensation ("ASC 718"), with regard to its planned equity incentive plans. ASC 718 covers a wide range of share-based compensation arrangements including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. ASC 718 requires that compensation cost relating to share-based payment transactions be recognized in financial statements. The cost is measured based on the fair value of the equity or liability instruments issued. As of June 30, 2013, the Company has not established a share based compensation plan.

(N) Dividends: Dividends payable are recorded on the declaration date.

(O) Earnings Per Share ("EPS"): In accordance with the provisions of ASC 260, Earnings per Share, the Company calculates basic income (loss) per share by dividing net income (loss) for the period by the weighted average of the Company's common shares outstanding for that period. Diluted income (loss) per share takes into account the effect of dilutive instruments, such as share options, warrants, and unvested restricted shares, and uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted average number of shares outstanding.

(P) Income Taxes: Prior to May 1, 2013, the Company, as a business trust with more than one owner, was considered a partnership for U.S. federal income tax purposes. In general, partnerships are not subject to entity-level tax on their income, but the income of a partnership is taxable to its owners on a flow-through basis. Interest, dividend, and other income realized by the Company from non-U.S. sources and capital gains realized on the sale of securities of non-U.S. issuers may be subject to entity level tax such as withholding and other taxes levied by the jurisdiction in which the income is sourced. The Company has not elected and does not intend to elect REIT status under the Code for the period September 25, 2012 (Commencement of Operations) through December 31, 2012 or for the short taxable period January 1, 2013 through April 30, 2013. The Company follows the authoritative guidance on accounting for and disclosure of uncertainty on tax positions, which requires management to determine whether a tax position of the company is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals of the litigation process, based on the technical merits of the position. For uncertain tax positions, the tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Company did not have any unrecognized tax benefits at June 30, 2013 or December 31, 2012. The Company does not expect any change in unrecognized tax benefits within the next year. In the normal course of business, the Company may be subject to examination by federal, state, local, and foreign jurisdictions, where applicable, for the current period and 2012 (its open tax years). The Company may take positions with respect to certain tax issues which depend on legal interpretation of facts or applicable tax regulations. Should the relevant tax regulators successfully challenge any such positions, the Company might be found to have a tax liability that has not been recorded in the accompanying consolidated financial statements. Also, management's conclusions regarding the authoritative guidance may be subject to review and adjustment at a later date based on changing tax laws, regulations, and interpretations thereof. There were no amounts accrued for penalties or interest as of or during the periods presented in these consolidated financial statements.

The Company made the election to be taxed as a corporation effective for the short taxable period May 1, 2013 through December 31, 2013. The Company intends to elect to be taxed as a REIT under Sections 856 to 860 of the Code commencing with the short taxable period May 1, 2013 through December 31, 2013.

(Q) Recent Accounting Pronouncements: Under the Jumpstart Our Business Startups Act, or the "JOBS Act," the Company meets the definition of an "emerging growth company." The Company has elected to follow the extended transition period for complying with new or revised U.S. accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-public entities.

In December 2011, the FASB issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11"). This amends ASC 210-20, Balance Sheet Offsetting, to require new disclosures about balance sheet offsetting for derivative and financial instruments which are offset on the Consolidated Balance Sheet. The update requires disclosure of gross asset and liability amounts for financial instruments shown net on the Consolidated Balance Sheet. ASU 2011-11 is effective for interim and annual periods beginning on or after January 1, 2013 and is to be applied retrospectively. In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities ("ASU 2013- 01"). The amendment clarifies that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with ASU No. 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements, reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting agreement or similar agreement. The adoption of ASU 2011-11, as amended by ASU 2013-01, did not have a material impact on the Company's consolidated financial statements.

In February 2013, the FASB issued ASU No. 2013-02, Other Comprehensive Income ("ASU 2013-02"), which amends ASC 220, Comprehensive Income. The amendments are intended to make the presentation of items within Other Comprehensive Income ("OCI") more prominent. ASU 2013-02 requires reclassification adjustments between OCI and net income to be presented separately on the face of the financial statements. The new guidance does not change the requirement to present items of net income and OCI, and totals for net income, OCI and comprehensive income in a single continuous statement or two consecutive statements. ASU 2013-02 is effective for the first interim or annual period beginning on or after December 15, 2013. Adopting this ASU is not expected to have any impact on the Company's condensed consolidated financial condition or results of operations, but may impact financial statement disclosures.

In February 2013, the FASB issued ASU No. 2013-04 which amends ASC 405, Liabilities. The amendment is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in GAAP. The amendment in this update is effective for fiscal years beginning after December 15, 2014 and interim and annual periods thereafter. The Company is evaluating the impact of this amendment.

Real Estate Securities

6 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Real Estate Securities

The following tables present details of the Company's real estate securities portfolio at June 30, 2013 and December 31, 2012, respectively. The Company's Agency RMBS include mortgage pass-through certificates and CMOs representing interests in or obligations backed by pools of residential mortgage loans issued or guaranteed by government-sponsored enterprises, Fannie Mae or Freddie Mac. The non-Agency RMBS portfolio is not issued or guaranteed by Fannie Mae, Freddie Mac or any agency of the U.S. Government and is therefore subject to greater credit risk.

By RMBS Type -

June 30, 2013:



($ in thousands)								Gross Unrealized							Weighted Average
	Current Principal		Unamortized Premium (Discount)			Amortized Cost		Gains		Losses			Fair Value		Coupon	Yield	Weighted Average Life(Years)⁽¹⁾
Agency RMBS:
15-year fixed rate mortgages	$	138,155	$	6,616		$	144,771	$	—	$	(2,522	)	$	142,249	3.02%	1.96%	5.92
30-year fixed rate mortgages	1,142,993		61,644			1,204,637		1,080		(45,201		)	1,160,516		3.53%	2.67%	10.09
Interest only securities	86,490		(77,604		)	8,886		1,032		(14		)	9,904		3.63%	8.45%	4.92
Total Agency RMBS	1,367,638		(9,344		)	1,358,294		2,112		(47,737		)	1,312,669		3.48%	2.63%	9.34
Non-Agency RMBS	62,358		(23,650		)	38,708		903		(801		)	38,810		2.73%	7.75%	5.43
Total Real Estate Securities	$	1,429,996	$	(32,994	)	$	1,397,002	$	3,015	$	(48,538	)	$	1,351,479	3.45%	2.84%	9.17

December 31, 2012:



($ in thousands)								Gross Unrealized							Weighted Average
	Current Principal		Unamortized Premium (Discount)			Amortized Cost		Gains		Losses			Fair Value		Coupon	Yield	Weighted Average Life(Years)⁽¹⁾
Non-Agency RMBS	$	26,890	$	(13,400	)	$	13,490	$	117	$	(11	)	$	13,596	2.20%	8.50%	7.80


(1)	Average lives of MBS are generally shorter than stated contractual maturities. Average lives are affected by the contractual maturities of the underlying mortgages, scheduled periodic payments of principal, and unscheduled prepayments of principal.

By Estimated Weighted Average Life -

As of June 30, 2013:



	Agency RMBS						Agency Interest Only Securities						Non-Agency RMBS
Estimated Weighted Average Life	Fair Value		Amortized Cost		Weighted Average Coupon		Fair Value		Amortized Cost		Weighted Average Coupon		Fair Value		Amortized Cost		Weighted Average Coupon
Less than three years	$	4,150	$	4,260	3.50	%	$	1,098	$	775	4.00	%	$	3,692	$	3,417	2.34	%
Greater than three years and less than seven years	146,621		149,188		3.09	%	7,736		7,123		3.58	%	18,118		18,087		2.85	%
Greater than seven years and less than eleven years	1,133,642		1,176,917		3.52	%	1,070		988		3.50	%	16,276		16,388		2.18	%
Greater than eleven years	18,352		19,043		3.71	%	—		—		0.00	%	724		816		7.69	%
Total	$	1,302,765	$	1,349,408	3.47	%	$	9,904	$	8,886	3.63	%	$	38,810	$	38,708	2.73	%

As of December 31, 2012:



	Non-Agency RMBS
Estimated Weighted Average Life	Fair Value		Amortized Cost		Weighted Average Coupon
Less than three years	$	3,036	$	3,001	5.57	%
Greater than three years and less than seven years	3,994		3,978		0.61	%
Greater than seven years and less than eleven years	3,601		3,608		1.10	%
Greater than eleven years	2,965		2,903		2.49	%
Total	$	13,596	$	13,490	2.20	%

The following table illustrates components of interest income on the Company's RMBS for the three and six months ended June 30, 2013:



	Three Month Period Ended June 30, 2013							Six Month Period Ended June 30, 2013
	Coupon Interest		Net Amortization			Interest Income		Coupon Interest		Net Amortization			Interest Income
Agency RMBS	$	4,914	$	(1,043	)	$	3,871	$	4,914	$	(1,043	)	$	3,871
Non-Agency RMBS	253		185			438		396		324			720
Total	$	5,167	$	(858	)	$	4,309	$	5,310	$	(719	)	$	4,591

The entire disclosure for investments in certain debt and equity securities.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Equity Security
-URI http://asc.fasb.org/extlink&oid=6511694

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Valuation

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Valuation

The Company applies ASC 820-10, Fair Value Measurement and Disclosures ("ASC 820-10"), to its holdings of financial instruments. ASC 820-10 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Financial instruments include securities and derivatives. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. The following is a description of the valuation methodologies used for financial instruments:

Level 1—valuation methodologies include the observation of quoted prices (unadjusted) for identical assets or liabilities in active markets, often received from widely recognized data providers.

Level 2—valuation methodologies include the observation of (i) quoted prices for similar assets or liabilities in active markets, (ii) inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves) in active markets and (iii) quoted prices for identical or similar assets or liabilities in markets that are not active.

The Company's Agency RMBS, exclusive of Agency interest only securities, or "Agency IOs," are classified as Level 2 assets. Fair value for Agency RMBS, excluding Agency IOs is determined using inputs considered to be observable including multiple indicative quotes from broker-dealers and recent trading activity for similar securities.

Level 3—valuation methodologies include (i) the solicitation of valuations from third parties (typically, broker-dealers), (ii) the use of proprietary models that require the use of a significant amount of judgment and the application of various assumptions including, but not limited to, prepayment assumptions and default rate assumptions, and (iii) the assessment of observable or reported recent trading activity. The Company utilizes such information to assign a good faith fair value (the estimated price that would be received to sell an asset or paid to transfer a liability in an orderly transaction at the valuation date) to each such financial instrument. The Company's non-Agency RMBS and Agency IOs are classified as Level 3 assets.

The Company seeks to obtain at least one third-party indicative valuation for each instrument, and often obtains multiple indicative valuations when available. Third-party valuation providers often utilize proprietary models that are highly subjective and also require the use of a significant amount of judgment and the application of various assumptions including, but not limited to, prepayment assumptions and default rate assumptions. The Company has been able to obtain third-party valuations on the vast majority of its assets, and the Company expects to continue to solicit third-party valuations on substantially all assets in the future to the extent practical. Beginning January 1, 2013, the Company generally values each financial instrument at the average of third party valuations received and not rejected as described below. Third-party valuations are not binding on the Company and while the Company generally does not adjust valuations it receives, it may challenge or reject a valuation when, based on validation criteria, the Company determines that such valuation is unreasonable or erroneous. Furthermore, the Company may determine, based on validation criteria, that for a given instrument the average of the third-party valuations received does not result in what the Company believes to be fair value, and in such circumstances the Company may override this average with its own good faith valuation. The validation criteria include the use of the Company's own models, recent trading activity in the same or similar instruments, and valuations received from third parties. Prior to 2013, the valuation process relied more heavily on the use of models and the observation of reported recent trading activity, which was substantiated by third party valuations. The Company's valuation process, including the application of validation criteria, is overseen by a valuation committee. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been used had a ready market for the financial instruments existed, and the differences could be material to the consolidated financial statements.

The following tables present the Company's financial instruments measured at fair value on:

June 30, 2013:



(In thousands)
Description	Level 1		Level 2			Level 3		Total
Assets:
Real estate securities, at fair value:
Agency RMBS:
15-year fixed rate mortgages	$	—	$	142,249		$	—	$	142,249
30-year fixed rate mortgages	—		1,160,516			—		1,160,516
Interest only securities	—		—			9,904		9,904
Non-Agency RMBS	—		—			38,810		38,810
Real estate securities, at fair value	—		1,302,765			48,714		1,351,479
Derivative assets, at fair value:
Interest rate swaps	—		26,516			—		26,516
TBAs	—		4,750			—		4,750
Total derivative assets	—		31,266			—		31,266
Total real estate securities and derivative assets, at fair value	$	—	$	1,334,031		$	48,714	$	1,382,745
Liabilities:
Derivative liabilities, at fair value:
Interest rate swaps	$	—	$	(320	)	$	—	$	(320	)
TBAs	—		(2,660		)	—		(2,660		)
Total derivative liabilities, at fair value	$	—	$	(2,980	)	$	—	$	(2,980	)

There were no transfers of financial instruments between Levels 1, 2, or 3 of the fair value hierarchy during the six month period ended June 30, 2013.

December 31, 2012:



(In thousands)
Description	Level 1		Level 2		Level 3		Total
Assets:
Real estate securities, at fair value:
Non-Agency RMBS	$	—	$	—	$	13,596	$	13,596
Total real estate securities, at fair value	$	—	$	—	$	13,596	$	13,596

There were no transfers of financial instruments between Levels 1, 2, or 3 of the fair value hierarchy during the period September 25, 2012 (commencement of operations) through December 31, 2012.

The following tables present additional information about the Company's investments which are measured at fair value for which the Company has utilized Level 3 inputs to determine fair value:

Three month period ended June 30, 2013:



(In thousands)	Agency RMBS			Non-Agency RMBS
Beginning balance at 3/31/2013	$	—		$	12,360
Transfers⁽¹⁾:
Transfers into level 3	—			—
Transfers out of level 3	—			—
Purchases	9,021			27,446
Proceeds from sales	—			—
Principal repayments	—			(1,023		)
Amortization/accretion, net	(135		)	185
Net realized gains	—			1
Change in net unrealized gains (losses)	1,018			(159		)
Ending balance at 6/30/2013	$	9,904		$	38,810
Change in net unrealized gains (losses) for level 3 assets still held as of June 30, 2013	$	1,018		$	(159	)

Six month period ended June 30, 2013:



(In thousands)	Agency RMBS			Non-Agency RMBS
Beginning balance at 12/31/2012	$	—		$	13,596
Transfers⁽¹⁾:
Transfers into level 3	—			—
Transfers out of level 3	—			—
Purchases	9,021			30,777
Proceeds from sales	—			(5,309		)
Principal repayments	—			(1,463		)
Amortization/accretion, net	(135		)	324
Net realized gains	—			889
Change in net unrealized gains (losses)	1,018			(4		)
Ending balance at 6/30/2013	$	9,904		$	38,810
Change in net unrealized gains (losses) for level 3 assets still held as of June 30, 2013	$	1,018		$	61


(1)	Transfers are assumed to occur at the beginning of the period.

The following tables identify the significant unobservable inputs that affect the valuation of the Company's Level 3 assets and liabilities as of June 30, 2013 and December 31, 2012:

June 30, 2013:



					Range
Description	Fair Value		Valuation Technique	Significant Unobservable Input	Min			Max			Weighted Average⁽¹⁾
	(In thousands)
Private Label Residential Mortgage-Backed Securities	$	31,178	Market quotes	Non Binding Indicative Price	$	29.75		$	102.79		$	81.21
Private Label Residential Mortgage-Backed Securities	$	7,632	Discounted Cash Flows	Yield	6.7		%	14.2		%	10.8		%
				Projected Collateral Prepayments	28.9		%	60.0		%	41.9		%
				Projected Collateral Losses	4.5		%	27.4		%	14.3		%
				Projected Collateral Recoveries	7.0		%	13.6		%	10.4		%
				Projected Collateral Scheduled Amortization	14.1		%	51.0		%	33.4		%
											100.0		%
Agency RMBS–Interest Only Securities	$	5,860	Option Adjusted Spread ("OAS")	LIBOR OAS ⁽²⁾	480			981			632
				Projected Collateral Prepayments	69.8		%	73.3		%	71.9		%
				Projected Collateral Scheduled Amortization	26.7		%	30.2		%	28.1		%
											100.0		%
Agency RMBS–Interest Only Securities	$	4,044	Market quotes	Non Binding Indicative Price	$	5.25		$	21.00		$	13.62


(1)	Averages are weighted based on the fair value of the related instrument.


(2)	Shown in basis points.

December 31, 2012:



					Range
Description	Fair Value		Valuation Technique	Significant Unobservable Input	Min		Max		Weighted Average⁽¹⁾
	(In thousands)
Private Label Residential Mortgage-Backed Securities	$	13,596	Discounted Cash Flows	Yield	6.2	%	20.4	%	8.5	%
				Projected Collateral Prepayments	12.6	%	52.2	%	29.4	%
				Projected Collateral Losses	11.3	%	41.4	%	26.9	%
				Projected Collateral Recoveries	6.8	%	33.2	%	23.8	%
				Projected Collateral Scheduled Amortization	3.0	%	52.7	%	19.9	%
									100.0	%


(1)	Averages are weighted based on the fair value of the related instrument.

Third-party non-binding indicative prices are validated by comparing such prices to internally generated prices based on the Company's models and to recent trading activity in the same or similar instruments. For those instruments valued using discounted cash flows, collateral prepayments, losses, recoveries, and scheduled amortization are projected over the remaining life of the collateral and expressed as a percentage of the collateral's current principal balance. For those assets valued using the LIBOR Option Adjusted Spread ("OAS") valuation methodology, cash flows are projected using the Company's models over multiple interest rate scenarios, and these projected cash flows are then discounted using the LIBOR rates implied by each interest rate scenario. The LIBOR OAS of an asset is then computed as the unique constant yield spread that, when added to all LIBOR rates in each interest rate scenario generated by the model, will equate (a) the expected present value of the projected asset cash flows over all model scenarios to (b) the actual current market price of the asset. LIBOR OAS is therefore model-dependent. Generally speaking, LIBOR OAS measures the additional yield spread over LIBOR that an asset provides at its current market price after taking into account any interest rate options embedded in the asset.

Material changes in any of the inputs above in isolation could result in a significant change to reported fair value measurements. Fair value measurements are impacted by the interrelationships of these inputs. For example, a higher expectation of collateral prepayments will generally result in a lower expectation of collateral losses. Conversely, higher losses will generally result in lower prepayments.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivative Instruments (Notes)

6 Months Ended

Jun. 30, 2013

Derivative Instruments [Abstract]

Derivative Instruments

The Company is exposed to certain risks arising from both its business operations and economic conditions. Specifically, the Company’s primary source of debt financing is repurchase agreements and the Company enters into financial derivative and other instruments to manage exposure to variable cash flows on portions of its borrowings under those repurchase agreements. Since the interest rates on repurchase agreements typically change with market interest rates such as LIBOR, the Company is exposed to constantly changing interest rates, which accordingly affects cash flows associated with these rates on its borrowings. To mitigate the effect of changes in these interest rates and their related cash flows, the Company may enter into a variety of derivative contracts, including interest rate swaps, Eurodollar and U.S. Treasury futures, interest rate swaptions and TBAs.

The following table details the Company's holdings of derivative instruments as of June 30, 2013:



	As of June 30, 2013
(In thousands)	Notional			Fair Value
Derivative assets, at fair value:
TBA securities purchase contracts	$	29,350		$	169
TBA securities sale contracts	(324,864		)	4,581
Fixed rate payer interest rate swaps	(740,900		)	26,516
Total derivative assets, at fair value:	$	(1,036,414	)	$	31,266
Derivative liabilities, at fair value:
TBA securities purchase contracts	$	45,000		$	(1,923	)
TBA securities sale contracts	(95,300		)	(737		)
Fixed rate payer interest rate swaps	(40,000		)	(320		)
Total derivative liabilities, at fair value:	$	(90,300	)	$	(2,980	)
Total	$	(1,126,714	)	$	28,286

The Company did not have any derivatives outstanding as of December 31, 2012.

An interest rate swap involves the receipt of variable rate payments from a counterparty in exchange for the Company making fixed rate payments over the life of the interest rate swap without exchange of the underlying notional amount. The following table details the Company's interest rate swaps as of June 30, 2013:



					Weighted Average
Maturity	Notional Amount		Fair Value		Pay Rate		Receive Rate		Years to Maturity
2017	$	40,000	$	181	1.05	%	0.27	%	3.95
2018	183,000		4,117		1.03	%	0.27	%	4.89
2020	271,900		8,711		1.61	%	0.27	%	6.90
2023	204,000		10,192		2.10	%	0.27	%	9.89
2043	82,000		2,995		3.25	%	0.26	%	29.94
Total	$	780,900	$	26,196	1.74	%	0.27	%	9.48

As of June 30, 2013, the Company had outstanding contracts to purchase ("long positions") and sell ("short positions") TBA securities as follows:



TBA Securities	Notional Amount ⁽¹⁾			Cost Basis ⁽²⁾			Market Value ⁽³⁾			Net Carrying Value ⁽⁴⁾
Purchase contracts:
Assets	$	29,350		$	28,519		$	28,688		$	169
Liabilities	45,000			45,909			43,986			(1,923		)
Sale contracts:
Assets	(324,864		)	(336,878		)	(332,297		)	4,581
Liabilities	(95,300		)	(96,207		)	(96,944		)	(737		)
Total TBA securities, net	$	(345,814	)	$	(358,657	)	$	(356,567	)	$	2,090


(1)	Notional amount represents the principal balance of the underlying Agency MBS.


(2)	Cost basis represents the forward price to be paid for the underlying Agency MBS.


(3)	Market value represents the current market value of the underlying Agency MBS (on a forward delivery basis) as of June 30, 2013.


(4)	Net carrying value represents the difference between the market value of the TBA contract as of June 30, 2013 and the cost basis and is reported in Derivative assets, at fair value and Derivative liabilities, at fair value on the Consolidated Balance Sheet.

The Company primarily uses TBAs to hedge interest rate risk, but from time to time it also holds net long positions in certain TBA securities as a means of acquiring exposure to Agency RMBS.

Gains and losses on the Company's derivative instruments for the three and six month period ended June 30, 2013 are summarized in the table below:



	Three and Six Month Period Ended June 30, 2013⁽¹⁾
Derivative Type	Net Realized Gains (Losses) on Periodic Settlements of Interest Rate Swaps			Net Realized Gains (Losses) Other Than Periodic Settlements of Interest Rate Swaps		Net Realized Gains (Losses) on Derivative Instruments		Change in Net Unrealized Gains (Losses) on Accrued Periodic Settlements of Interest Rate Swaps			Change in Net Unrealized Gains (Losses) Other Than on Accrued Periodic Settlements of Interest Rate Swaps		Change in Net Unrealized Gains (Losses) on Derivative Instruments
Interest Rate Swaps	$	(69	)	$	179	$	110	$	(1,042	)	$	27,238	$	26,196
TBAs				8,266		8,266					2,090		2,090
Total	$	(69	)	$	8,445	$	8,376	$	(1,042	)	$	29,328	$	28,286


⁽¹⁾	The Company did not have derivative positions on or prior to March 31, 2013, and as a result net realized and unrealized gains and losses for three month period ended June 30, 2013 are the same as for the six month period ended June 30, 2013.

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

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Repurchase Agreements Disclosure [Text Block]

Repurchase Agreements (Notes)

6 Months Ended

Jun. 30, 2013

Repurchase Agreements [Abstract]

Borrowings under Repurchase Agreements

The Company pledges certain real estate securities as collateral under repurchase agreements with financial institutions, the terms and conditions of which are negotiated on a transaction-by-transaction basis. Repurchase agreements involve the sale to a counterparty and a simultaneous agreement to repurchase the transferred assets or similar assets from such counterparty at a future date. The amount borrowed generally is equal to the fair value of the assets pledged less an agreed-upon discount, referred to as a "haircut." Repurchase agreements entered into by the Company are accounted for as collateralized borrowings and require the repurchase of the transferred securities at the end of each agreement’s term, which is typically 30 to 90 days. The carrying amount of the Company’s repurchase agreements approximates fair value as the debt is short-term in nature. The Company maintains the beneficial interest in the specific securities pledged during the term of the repurchase agreement and receives the related principal and interest payments. Interest rates on these borrowings are generally fixed based on prevailing rates corresponding to the terms of the borrowings, and interest is paid at the termination of the repurchase agreement at which time the Company may enter into a new repurchase agreement at prevailing market rates with the same counterparty or repay that counterparty and possibly negotiate financing terms with a different counterparty. In response to declines in fair value of pledged securities due to changes in market conditions or the publishing of monthly security paydown factors, counterparties to repurchase agreements will typically make margin calls, whereby the Company will be required to post additional securities as collateral, pay down borrowings or establish cash margin accounts with the counterparties in order to re-establish the agreed-upon collateral requirements. Under the terms of the Company’s master repurchase agreements ("MRAs"), the counterparties may, in certain cases, sell or re-hypothecate the pledged collateral.

The Company seeks to have several different counterparties to its repurchase agreements at any given time, in order to reduce the exposure to any single counterparty. As of June 30, 2013 the Company had outstanding borrowings under repurchase agreements with five counterparties. As of June 30, 2013, the amount at risk outstanding in connection with repurchase agreements with Deutsche Bank Securities was $24.8 million or 14.6% of shareholders' equity, and the weighted average remaining days to maturity of the repurchase agreements with Deutsche Bank Securities was 33 days. The Company had no outstanding borrowings under repurchase agreements outstanding as of December 31, 2012.

The following table details the Company's outstanding borrowings under repurchase agreements as of June 30, 2013:



			Weighted Average
Original Maturity	Borrowings Outstanding		Interest Rate		Days to Maturity
30 days or less	$	700,812	0.38	%	15
31-60 days	289,830		0.37	%	44
61-90 days	225,054		0.37	%	74
Total	$	1,215,696	0.37	%	33

As of June 30, 2013, the fair value of Agency RMBS pledged as collateral under outstanding borrowings under repurchase agreements was $1.2 billion. As of June 30, 2013, the Company did not have outstanding borrowings under repurchase agreements for any of its non-Agency RMBS assets.

Offsetting of Assets and Liabilities (Notes)

6 Months Ended

Jun. 30, 2013

Offsetting of Assets and Liabilities [Abstract]

OffsettingOfAssetsAndLiabilities [Text Block]

Offsetting of Assets and Liabilities

The Company records financial instruments at fair value as described in Note 4. All financial instruments are recorded on a gross basis on the Consolidated Balance Sheet. In connection with its derivative instruments, repurchase agreements, and related trading agreements, the Company and its counterparties are required to pledge collateral. Cash or other collateral is exchanged as required with each of the Company's counterparties in connection with open derivative positions and repurchase agreements.

The following table presents information about certain assets and liabilities representing financial instruments as of June 30, 2013. The Company has not previously entered into master netting agreements with any of its counterparties.



Description	Amount of Assets (Liabilities) Presented in the Consolidated Balance Sheet⁽¹⁾			Financial Instruments⁽²⁾⁽³⁾		Cash Collateral (Received) Pledged⁽³⁾			Net Amount
Assets:
Derivative assets, at fair value- Gross	$	31,266
Derivative assets, at fair value-Net	$	28,286		$	—	$	(20,406	)	$	7,880
Liabilities:
Derivative liabilities, at fair value- Gross	$	(2,980	)
Derivative liabilities, at fair value-Net	$	—		$	—	$	—		$	—
Repurchase Agreements	$	(1,215,696	)
Repurchase Agreements-Net	$	(1,215,696	)	$	1,181,779	$	33,917		$	—


(1)	In the Company's Consolidated Balance Sheet, all balances associated with the repurchase agreements and derivative instruments are presented on a gross basis.


(2)	Amounts disclosed in the Financial Instruments column of the table represent collateral that is available to be offset against balances associated with repurchase agreements.


(3)	As collateral is called or posted per counterparty it is generally called or posted across all positions with each respective counterparty.

Management Fees	6 Months Ended
Management Fees	Jun. 30, 2013
Management Fees Disclosure [Abstract]
Management Fees	Management Fees The Manager receives an annual management fee in an amount equal to 1.50% per annum of shareholders' equity (as defined in the Management Agreement) as of the end of each fiscal quarter (before deductions for management fee with respect to such fiscal period). The management fee is payable quarterly in arrears. For the three and six month periods ended June 30, 2013, total management fee incurred was approximately $0.7 million and $0.8 million, respectively. Shareholders' equity is defined in the Management Agreement, as of the end of any fiscal quarter, as (a) the sum of (1) the net proceeds from any issuances of common shares or other equity securities of EARN or the Operating Partnership (without double counting) since inception, plus (2) EARN's and the Operating Partnership's (without double counting) retained earnings or accumulated deficit calculated in accordance with GAAP at the end of the most recently completed fiscal quarter (without taking into account any non-cash equity compensation expense incurred in current or prior periods), less (b) any amount that the Company or the Operating Partnership has paid to repurchase common shares, limited partnership interests in the Operating Partnership or other equity securities since inception. Shareholders' equity excludes (1) any unrealized gains, losses or non-cash equity compensation expenses that have impacted shareholders' equity as reported in the financial statements prepared in accordance with GAAP, regardless of whether such items are included in net income, and (2) one-time events pursuant to changes in GAAP, and certain non-cash items not otherwise described above, in each case, after discussions between the Manager and EARN's independent trustees and approval by a majority of EARN's independent trustees.

Earnings per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Earnings per Share

Earnings Per Share

Basic EPS is calculated by dividing net income (loss) for the period by the weighted average of the Company's common shares outstanding for the period. Diluted EPS takes into account the effect of dilutive instruments, such as share options, warrants, and unvested restricted shares, and uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted average number of shares outstanding. As of June 30, 2013, the Company did not have any dilutive instruments outstanding. Common shares outstanding used in EPS have been adjusted to reflect the impact of the common share dividend discussed in Note 11.

The following table presents a reconciliation of the earnings/(losses) and shares used in calculating basic EPS for the three and six month periods ended June 30, 2013:



(In thousands except share amounts)	Three Month Period Ended June 30, 2013			Six Month Period Ended June 30, 2013
Numerator:
Net loss	$	(9,704	)	$	(8,574	)
Denominator:
Basic weighted average shares outstanding	6,248,763			3,953,820
Basic Earnings Per Share	$	(1.55	)	$	(2.17	)

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2013
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Management Agreement The Company has entered into a management agreement with the Manager, which provides for an initial term through September 27, 2017, and which will be renewed automatically each year thereafter for an additional one-year period, subject to certain termination rights. The Company is externally managed and advised by the Manager. Pursuant to the terms of the Management Agreement, effective September 24, 2012, the Manager provides the Company with its management team, including its officers and appropriate support personnel. The Company does not have any employees. The Manager is responsible for the day-to-day operations of the Company. Services Agreement The Manager and EMG are parties to a services agreement, pursuant to which EMG is required to provide to the Manager personnel, services, and resources as needed to enable the Manager to carry out its obligations and responsibilities under the Management Agreement. The Company is a named third-party beneficiary to the services agreement and, as a result, has, as a non-exclusive remedy, a direct right of action against EMG in the event of any breach by the Manager of any of its duties, obligations, or agreements under the Management Agreement that arise out of or result from any breach by EMG of its obligations under the services agreement. The services agreement will terminate upon the termination of the Management Agreement. Pursuant to the services agreement, the Manager makes certain payments to EMG in connection with the services provided. The Manager and EMG are under common ownership and control. As a result, all management fee compensation earned by the Manager and all service agreement fees earned by EMG accrue to the common benefit of the owners of the Manager and EMG, other than in respect of certain special non-voting membership interests in Ellington Residential Mortgage Management LLC held by certain shareholders of EARN. Expense Reimbursement Under the terms of the Management Agreement the Company is required to reimburse the Manager for operating expenses related to the Company that are incurred by the Manager, including expenses relating to legal, accounting, due diligence, other services, and all other costs and expenses. The Company's reimbursement obligation is not subject to any dollar limitation. Expenses will be reimbursed in cash within 60 days following delivery of the expense statement by the Manager; provided, however, that such reimbursement may be offset by the Manager against amounts due to the Company from the Manager. The Company will not reimburse the Manager for the salaries and other compensation of its personnel except that the Company will be responsible for expenses incurred by the Manager in employing certain dedicated or partially dedicated personnel as further described below. The Company reimburses the Manager for the allocable share of the compensation, including, without limitation, wages, salaries, and employee benefits paid or reimbursed, as approved by the Compensation Committee of the Board of Trustees, to certain dedicated or partially dedicated personnel who spend all or a portion of their time managing the Company's affairs, based upon the percentage of time devoted by such personnel to the Company's affairs. In their capacities as officers or personnel of the Manager or its affiliates, such personnel will devote such portion of their time to the Company's affairs as is necessary to enable the Company to operate its business. Termination Fee The Management Agreement requires the Company to pay a termination fee to the Manager in the event of (1) the Company's termination or non-renewal of the Management Agreement without cause or (2) the Manager's termination of the Management Agreement upon a default by the Company in the performance of any material term of the Management Agreement. Such termination fee will be equal to 5% of Shareholders' Equity, as defined in the Management Agreement (see Note 8 above) as of the month-end preceding termination. As of June 30, 2013, no event of termination of the Management Agreement has occurred. Registration Rights Agreement EARN is a party to a registration rights agreement with an affiliate of EMG and with the Blackstone Tactical Opportunities Funds (the "Blackstone Funds") pursuant to which the Company has granted its initial investors and each of their permitted transferees and other holders of the Company's "registrable common shares" (as such term is defined in the registration rights agreement) who become a party to the registration rights agreement with certain demand and/or piggy-back registration and shelf takedown rights. In no event shall any holder of the EARN's registrable common shares have any of the registration, offering, or sale rights set forth in the registration rights agreement prior to the one year anniversary of the closing of the initial public offering.

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph b
-Article 3A

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Capital	6 Months Ended
Capital	Jun. 30, 2013
Equity [Abstract]
Capital	Capital The Company has authorized 500,000,000 common shares, $0.01 par value per share, and 100,000,000 preferred shares, $0.01 par value per share. The Board of Trustees may authorize the issuance of additional shares of either class. As of June 30, 2013 and December 31, 2012, there were 9,133,378 and 1,633,378 common shares outstanding, respectively. No preferred shares have been issued. On April 18, 2013, the Company's Board of Trustees declared a 3.7066% stock dividend (58,378 shares) distributable to shareholders of record as of March 31, 2013, using a price of $20.38 per share. The stock dividend was retrospectively applied to the periods reflected in the consolidated financial statements. On May 1, 2013, the Company priced an initial public offering of its common shares, pursuant to which it sold 6,450,000 shares to the public at a price of $20.00 per share. Concurrent with the initial public offering, the Company completed a private placement with its initial shareholders which resulted in gross proceeds to the Company of $21.0 million and the issuance of 1,050,000 shares at a price of $20.00 per share. No further capital commitments from the initial shareholders remain as a result of this private placement. Total gross proceeds from the initial public offering and concurrent private placement were $150.0 million. Proceeds, net of offering costs, were approximately $148.5 million. On June 18, 2013, the Company's Board of Trustees declared a second quarter dividend of $0.14 per share. The dividend was paid on July 26, 2013 to shareholders of record as of June 28, 2013. Distribution Policy The timing and frequency of distributions will be determined by the Board of Trustees based upon a variety of factors deemed relevant by the Company's trustees, including restrictions under applicable law, capital requirements of the Company, and the REIT requirements of the Code. Distributions to shareholders generally will be taxable as ordinary income, although a portion of such distributions may be designated as long-term capital gain or qualified dividend income, or may constitute a return of capital. The Company will furnish annually to each shareholder a statement setting forth distributions paid during the preceding year and their U.S. federal income tax treatment.

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.4-08.(d),(e))
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-URI http://asc.fasb.org/extlink&oid=6521494

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-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 5
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

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-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

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-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
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Reference 20: http://www.xbrl.org/2003/role/presentationRef
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Reference 22: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2013
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, the Company may become involved in various claims and legal actions arising in the ordinary course of business. Management is not aware of any significant contingencies at June 30, 2013.

The entire disclosure for commitments and contingencies.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 20
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-Name FASB Interpretation (FIN)
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Accounting for Real Estate Securities

Subsequent Events (Notes)	6 Months Ended
Subsequent Events (Notes)	Jun. 30, 2013
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Subsequent Events On August 13, 2013, the Company's Board of Trustees approved the adoption of a $10 million share repurchase program. The program, which is open-ended in duration, allows the Company to make repurchases from time to time on the open market or in negotiated transactions. Repurchases are at the Company's discretion, subject to applicable law, share availability, price and the Company's financial performance, among other considerations.

Significant Accounting Policies Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation: The Company's unaudited interim consolidated financial statements have been prepared in conformity with generally accepted accounting principles ("GAAP") in the United States of America, for interim financial information. Entities in which the Company has a controlling financial interest, through ownership of the majority of the entities' voting equity interests, or through other contractual right that give the Company control, are consolidated by the Company. All inter-company balances and transactions have been eliminated. The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and those differences could be material. Interim results are not necessarily indicative of the results that may be expected for the entire fiscal year.

Valuation

Valuation: The Company applies Accounting Standards Codification ("ASC") ASC 820-10, Fair Value Measurement and Disclosures ("ASC 820-10"), to its holdings of financial instruments. ASC 820-10 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:


•	Level 1—inputs to the valuation methodology are observable and reflect quoted prices (unadjusted) for identical assets or liabilities in active markets,


•	Level 2—inputs to the valuation methodology other than quoted prices included in Level 1 are observable for the asset or liability, either directly or indirectly, and


•	Level 3—inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Accounting for Real Estate Securities: Investments in real estate securities are recorded on trade date. The Company has chosen to make a fair value election pursuant to ASC 825-10, Financial Instruments, for its real estate securities portfolio. Electing the fair value option allows the Company to record changes in fair value in the Consolidated Statement of Operations, which, in management's view, more appropriately reflects the results of operations for a particular reporting period as all securities activities will be recorded in a similar manner. As such, the real estate securities are recorded at fair value on the Consolidated Balance Sheet and the period change in fair value is recorded in current period earnings on the Consolidated Statement of Operations as a component of Change in net unrealized gains (losses) on real estate securities.

Interest Income

Interest Income: The Company accretes market discounts and amortizes market premiums on debt securities using the effective yield method. Accretion of market discount and amortization of market premiums requires the use of a significant amount of judgment and the application of several assumptions including, but not limited to, prepayment assumptions and default rate assumptions, which are evaluated quarterly. The Company's accretion of discounts and amortization of premiums for U.S. federal and other tax purposes is likely to differ from the financial accounting treatment of these items as described above.

Cash and Cash Equivalents

Cash and Cash Equivalents: Cash and cash equivalents include cash and short term investments with original maturities of three months or less at the date of acquisition. Cash equivalents are recorded at cost plus accrued interest, which approximates fair value. Cash accounts are maintained with financial institutions and these balances generally exceed insured limits.

Deposits with Dealers Held as Collateral/Due to Brokers

Due from brokers/Due to brokers: Due from brokers and Due to brokers accounts on the Consolidated Balance Sheet includes collateral received or paid from counterparties along with receivables and payables for open and or closed derivative positions.

Financial Derivatives

Financial Derivatives: The Company may enter into various types of financial derivatives subject to certain restrictions, including restrictions associated with qualifying as a REIT, when the company elects REIT tax status, and investment guidelines.

Repurchase Agreements and Reverse Repurchase Agreements

Repurchase Agreements and Reverse Repurchase Agreements: The Company may enter into repurchase agreements with third-party broker-dealers, whereby it sells securities under agreements to repurchase at an agreed upon price and date. The Company also enters into reverse repurchase agreement transactions with third-party broker-dealers, whereby it purchases securities under agreements to resell at an agreed upon price and date. Interest on the value of repurchase and reverse repurchase agreements issued and outstanding is based upon market rates at the time of issuance. The Company accounts for repurchase agreements as collateralized borrowings. When the Company enters into a repurchase agreement, the lender establishes and maintains an account containing cash transferred and securities having a value not less than the repurchase price, including accrued interest, of the repurchase agreement. Repurchase and reverse repurchase agreements that are conducted with the same counterparty can be reported on a net basis if they meet the requirements under the authoritative guidance. Repurchase agreements and reverse repurchase agreements are carried at their contractual amounts, which approximate fair value.

U.S. Treasury securities

U.S. Treasury Securities: The Company may purchase or sell short U.S. Treasury securities and U.S. Treasury futures contracts to help mitigate the potential impact of changes in interest rates on the performance of its portfolio. The Company may borrow securities under reverse repurchase agreements to cover short sales of U.S. Treasury securities. The Company accounts for these as securities borrowing transactions and recognizes an obligation to return the borrowed securities at fair value on the Consolidated Balance Sheet based on the value of the underlying borrowed securities as of the reporting date.

Organizational Expenses

Organizational Expenses: Organizational expenses are expensed as incurred. Organizational expenses consisted mainly of legal fees.

Offering Costs/Placement Fees/Deferred Offering Costs

Offering Costs/Deferred Offering Costs: Offering costs are charged against shareholders' equity. As of December 31, 2012, cumulative costs associated with the Company's public offering of common shares were deferred. At the closing of the common share offering, in May 2013, these deferred offering costs were offset against the proceeds of the offering. Deferred offering costs consist principally of legal, accounting, printing, and other fees associated with the offering.

Manager Compensation

Manager Compensation: The Management Agreement provides for the payment of a management fee to the Manager. The management fee is accrued and expensed during the period that the management services are performed. For a more detailed discussion on the fees payable under the Management Agreement see Note 8.

Share Based Compensation

Share Based Compensation: The Company will apply the provisions of ASC 718, Compensation—Shares Compensation ("ASC 718"), with regard to its planned equity incentive plans. ASC 718 covers a wide range of share-based compensation arrangements including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. ASC 718 requires that compensation cost relating to share-based payment transactions be recognized in financial statements. The cost is measured based on the fair value of the equity or liability instruments issued. As of June 30, 2013, the Company has not established a share based compensation plan.

Dividends

Dividends: Dividends payable are recorded on the declaration date.

Earnings Per Share

Earnings Per Share ("EPS"): In accordance with the provisions of ASC 260, Earnings per Share, the Company calculates basic income (loss) per share by dividing net income (loss) for the period by the weighted average of the Company's common shares outstanding for that period. Diluted income (loss) per share takes into account the effect of dilutive instruments, such as share options, warrants, and unvested restricted shares, and uses the average share price for the period in determining the number of incremental shares that are to be added to the weighted average number of shares outstanding.

Income Taxes

Income Taxes: Prior to May 1, 2013, the Company, as a business trust with more than one owner, was considered a partnership for U.S. federal income tax purposes. In general, partnerships are not subject to entity-level tax on their income, but the income of a partnership is taxable to its owners on a flow-through basis. Interest, dividend, and other income realized by the Company from non-U.S. sources and capital gains realized on the sale of securities of non-U.S. issuers may be subject to entity level tax such as withholding and other taxes levied by the jurisdiction in which the income is sourced. The Company has not elected and does not intend to elect REIT status under the Code for the period September 25, 2012 (Commencement of Operations) through December 31, 2012 or for the short taxable period January 1, 2013 through April 30, 2013. The Company follows the authoritative guidance on accounting for and disclosure of uncertainty on tax positions, which requires management to determine whether a tax position of the company is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals of the litigation process, based on the technical merits of the position. For uncertain tax positions, the tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Company did not have any unrecognized tax benefits at June 30, 2013 or December 31, 2012. The Company does not expect any change in unrecognized tax benefits within the next year. In the normal course of business, the Company may be subject to examination by federal, state, local, and foreign jurisdictions, where applicable, for the current period and 2012 (its open tax years). The Company may take positions with respect to certain tax issues which depend on legal interpretation of facts or applicable tax regulations. Should the relevant tax regulators successfully challenge any such positions, the Company might be found to have a tax liability that has not been recorded in the accompanying consolidated financial statements. Also, management's conclusions regarding the authoritative guidance may be subject to review and adjustment at a later date based on changing tax laws, regulations, and interpretations thereof. There were no amounts accrued for penalties or interest as of or during the periods presented in these consolidated financial statements.

Recent Accounting Pronouncements

Recent Accounting Pronouncements: Under the Jumpstart Our Business Startups Act, or the "JOBS Act," the Company meets the definition of an "emerging growth company." The Company has elected to follow the extended transition period for complying with new or revised U.S. accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-public entities.

Real Estate Securities (Tables)

6 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Schedule of Real Estate Securities

By RMBS Type -

June 30, 2013:



($ in thousands)								Gross Unrealized							Weighted Average
	Current Principal		Unamortized Premium (Discount)			Amortized Cost		Gains		Losses			Fair Value		Coupon	Yield	Weighted Average Life(Years)⁽¹⁾
Agency RMBS:
15-year fixed rate mortgages	$	138,155	$	6,616		$	144,771	$	—	$	(2,522	)	$	142,249	3.02%	1.96%	5.92
30-year fixed rate mortgages	1,142,993		61,644			1,204,637		1,080		(45,201		)	1,160,516		3.53%	2.67%	10.09
Interest only securities	86,490		(77,604		)	8,886		1,032		(14		)	9,904		3.63%	8.45%	4.92
Total Agency RMBS	1,367,638		(9,344		)	1,358,294		2,112		(47,737		)	1,312,669		3.48%	2.63%	9.34
Non-Agency RMBS	62,358		(23,650		)	38,708		903		(801		)	38,810		2.73%	7.75%	5.43
Total Real Estate Securities	$	1,429,996	$	(32,994	)	$	1,397,002	$	3,015	$	(48,538	)	$	1,351,479	3.45%	2.84%	9.17

December 31, 2012:



($ in thousands)								Gross Unrealized							Weighted Average
	Current Principal		Unamortized Premium (Discount)			Amortized Cost		Gains		Losses			Fair Value		Coupon	Yield	Weighted Average Life(Years)⁽¹⁾
Non-Agency RMBS	$	26,890	$	(13,400	)	$	13,490	$	117	$	(11	)	$	13,596	2.20%	8.50%	7.80


(1)	Average lives of MBS are generally shorter than stated contractual maturities. Average lives are affected by the contractual maturities of the underlying mortgages, scheduled periodic payments of principal, and unscheduled prepayments of principal.

Weighted Average Life Classifications [Table Text Block]

As of June 30, 2013:



	Agency RMBS						Agency Interest Only Securities						Non-Agency RMBS
Estimated Weighted Average Life	Fair Value		Amortized Cost		Weighted Average Coupon		Fair Value		Amortized Cost		Weighted Average Coupon		Fair Value		Amortized Cost		Weighted Average Coupon
Less than three years	$	4,150	$	4,260	3.50	%	$	1,098	$	775	4.00	%	$	3,692	$	3,417	2.34	%
Greater than three years and less than seven years	146,621		149,188		3.09	%	7,736		7,123		3.58	%	18,118		18,087		2.85	%
Greater than seven years and less than eleven years	1,133,642		1,176,917		3.52	%	1,070		988		3.50	%	16,276		16,388		2.18	%
Greater than eleven years	18,352		19,043		3.71	%	—		—		0.00	%	724		816		7.69	%
Total	$	1,302,765	$	1,349,408	3.47	%	$	9,904	$	8,886	3.63	%	$	38,810	$	38,708	2.73	%

As of December 31, 2012:



	Non-Agency RMBS
Estimated Weighted Average Life	Fair Value		Amortized Cost		Weighted Average Coupon
Less than three years	$	3,036	$	3,001	5.57	%
Greater than three years and less than seven years	3,994		3,978		0.61	%
Greater than seven years and less than eleven years	3,601		3,608		1.10	%
Greater than eleven years	2,965		2,903		2.49	%
Total	$	13,596	$	13,490	2.20	%

Interest Income Components - Investments [Table Text Block]

The following table illustrates components of interest income on the Company's RMBS for the three and six months ended June 30, 2013:



	Three Month Period Ended June 30, 2013							Six Month Period Ended June 30, 2013
	Coupon Interest		Net Amortization			Interest Income		Coupon Interest		Net Amortization			Interest Income
Agency RMBS	$	4,914	$	(1,043	)	$	3,871	$	4,914	$	(1,043	)	$	3,871
Non-Agency RMBS	253		185			438		396		324			720
Total	$	5,167	$	(858	)	$	4,309	$	5,310	$	(719	)	$	4,591

Valuation (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measurements

The following tables present the Company's financial instruments measured at fair value on:

June 30, 2013:



(In thousands)
Description	Level 1		Level 2			Level 3		Total
Assets:
Real estate securities, at fair value:
Agency RMBS:
15-year fixed rate mortgages	$	—	$	142,249		$	—	$	142,249
30-year fixed rate mortgages	—		1,160,516			—		1,160,516
Interest only securities	—		—			9,904		9,904
Non-Agency RMBS	—		—			38,810		38,810
Real estate securities, at fair value	—		1,302,765			48,714		1,351,479
Derivative assets, at fair value:
Interest rate swaps	—		26,516			—		26,516
TBAs	—		4,750			—		4,750
Total derivative assets	—		31,266			—		31,266
Total real estate securities and derivative assets, at fair value	$	—	$	1,334,031		$	48,714	$	1,382,745
Liabilities:
Derivative liabilities, at fair value:
Interest rate swaps	$	—	$	(320	)	$	—	$	(320	)
TBAs	—		(2,660		)	—		(2,660		)
Total derivative liabilities, at fair value	$	—	$	(2,980	)	$	—	$	(2,980	)

There were no transfers of financial instruments between Levels 1, 2, or 3 of the fair value hierarchy during the six month period ended June 30, 2013.

December 31, 2012:



(In thousands)
Description	Level 1		Level 2		Level 3		Total
Assets:
Real estate securities, at fair value:
Non-Agency RMBS	$	—	$	—	$	13,596	$	13,596
Total real estate securities, at fair value	$	—	$	—	$	13,596	$	13,596

There were no transfers of financial instruments between Levels 1, 2, or 3 of the fair value hierarchy during the period September 25, 2012 (commencement of operations) through December 31, 2012.

Unobservable Input Reconciliation

The following tables present additional information about the Company's investments which are measured at fair value for which the Company has utilized Level 3 inputs to determine fair value:

Three month period ended June 30, 2013:



(In thousands)	Agency RMBS			Non-Agency RMBS
Beginning balance at 3/31/2013	$	—		$	12,360
Transfers⁽¹⁾:
Transfers into level 3	—			—
Transfers out of level 3	—			—
Purchases	9,021			27,446
Proceeds from sales	—			—
Principal repayments	—			(1,023		)
Amortization/accretion, net	(135		)	185
Net realized gains	—			1
Change in net unrealized gains (losses)	1,018			(159		)
Ending balance at 6/30/2013	$	9,904		$	38,810
Change in net unrealized gains (losses) for level 3 assets still held as of June 30, 2013	$	1,018		$	(159	)

Six month period ended June 30, 2013:



(In thousands)	Agency RMBS			Non-Agency RMBS
Beginning balance at 12/31/2012	$	—		$	13,596
Transfers⁽¹⁾:
Transfers into level 3	—			—
Transfers out of level 3	—			—
Purchases	9,021			30,777
Proceeds from sales	—			(5,309		)
Principal repayments	—			(1,463		)
Amortization/accretion, net	(135		)	324
Net realized gains	—			889
Change in net unrealized gains (losses)	1,018			(4		)
Ending balance at 6/30/2013	$	9,904		$	38,810
Change in net unrealized gains (losses) for level 3 assets still held as of June 30, 2013	$	1,018		$	61


(1)	Transfers are assumed to occur at the beginning of the period.

Quantitative Information

The following tables identify the significant unobservable inputs that affect the valuation of the Company's Level 3 assets and liabilities as of June 30, 2013 and December 31, 2012:

June 30, 2013:



					Range
Description	Fair Value		Valuation Technique	Significant Unobservable Input	Min			Max			Weighted Average⁽¹⁾
	(In thousands)
Private Label Residential Mortgage-Backed Securities	$	31,178	Market quotes	Non Binding Indicative Price	$	29.75		$	102.79		$	81.21
Private Label Residential Mortgage-Backed Securities	$	7,632	Discounted Cash Flows	Yield	6.7		%	14.2		%	10.8		%
				Projected Collateral Prepayments	28.9		%	60.0		%	41.9		%
				Projected Collateral Losses	4.5		%	27.4		%	14.3		%
				Projected Collateral Recoveries	7.0		%	13.6		%	10.4		%
				Projected Collateral Scheduled Amortization	14.1		%	51.0		%	33.4		%
											100.0		%
Agency RMBS–Interest Only Securities	$	5,860	Option Adjusted Spread ("OAS")	LIBOR OAS ⁽²⁾	480			981			632
				Projected Collateral Prepayments	69.8		%	73.3		%	71.9		%
				Projected Collateral Scheduled Amortization	26.7		%	30.2		%	28.1		%
											100.0		%
Agency RMBS–Interest Only Securities	$	4,044	Market quotes	Non Binding Indicative Price	$	5.25		$	21.00		$	13.62


(1)	Averages are weighted based on the fair value of the related instrument.


(2)	Shown in basis points.

December 31, 2012:



					Range
Description	Fair Value		Valuation Technique	Significant Unobservable Input	Min		Max		Weighted Average⁽¹⁾
	(In thousands)
Private Label Residential Mortgage-Backed Securities	$	13,596	Discounted Cash Flows	Yield	6.2	%	20.4	%	8.5	%
				Projected Collateral Prepayments	12.6	%	52.2	%	29.4	%
				Projected Collateral Losses	11.3	%	41.4	%	26.9	%
				Projected Collateral Recoveries	6.8	%	33.2	%	23.8	%
				Projected Collateral Scheduled Amortization	3.0	%	52.7	%	19.9	%
									100.0	%


(1)	Averages are weighted based on the fair value of the related instrument.

Tabular disclosure related to assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a recurring and/or nonrecurring basis in periods after initial recognition. Disclosures include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3) as well as transfers between levels 1 and 2.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Schedule of Derivative Instruments [Table Text Block]

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments [Abstract]

The following table details the Company's holdings of derivative instruments as of June 30, 2013:



	As of June 30, 2013
(In thousands)	Notional			Fair Value
Derivative assets, at fair value:
TBA securities purchase contracts	$	29,350		$	169
TBA securities sale contracts	(324,864		)	4,581
Fixed rate payer interest rate swaps	(740,900		)	26,516
Total derivative assets, at fair value:	$	(1,036,414	)	$	31,266
Derivative liabilities, at fair value:
TBA securities purchase contracts	$	45,000		$	(1,923	)
TBA securities sale contracts	(95,300		)	(737		)
Fixed rate payer interest rate swaps	(40,000		)	(320		)
Total derivative liabilities, at fair value:	$	(90,300	)	$	(2,980	)
Total	$	(1,126,714	)	$	28,286

The Company did not have any derivatives outstanding as of December 31, 2012.

InterestRateSwapsByRemainingMaturity [Table Text Block]

The following table details the Company's interest rate swaps as of June 30, 2013:



					Weighted Average
Maturity	Notional Amount		Fair Value		Pay Rate		Receive Rate		Years to Maturity
2017	$	40,000	$	181	1.05	%	0.27	%	3.95
2018	183,000		4,117		1.03	%	0.27	%	4.89
2020	271,900		8,711		1.61	%	0.27	%	6.90
2023	204,000		10,192		2.10	%	0.27	%	9.89
2043	82,000		2,995		3.25	%	0.26	%	29.94
Total	$	780,900	$	26,196	1.74	%	0.27	%	9.48

Schedule of To-be-announced securities (TBAs) [Table Text Block]

As of June 30, 2013, the Company had outstanding contracts to purchase ("long positions") and sell ("short positions") TBA securities as follows:



TBA Securities	Notional Amount ⁽¹⁾			Cost Basis ⁽²⁾			Market Value ⁽³⁾			Net Carrying Value ⁽⁴⁾
Purchase contracts:
Assets	$	29,350		$	28,519		$	28,688		$	169
Liabilities	45,000			45,909			43,986			(1,923		)
Sale contracts:
Assets	(324,864		)	(336,878		)	(332,297		)	4,581
Liabilities	(95,300		)	(96,207		)	(96,944		)	(737		)
Total TBA securities, net	$	(345,814	)	$	(358,657	)	$	(356,567	)	$	2,090


(1)	Notional amount represents the principal balance of the underlying Agency MBS.


(2)	Cost basis represents the forward price to be paid for the underlying Agency MBS.


(3)	Market value represents the current market value of the underlying Agency MBS (on a forward delivery basis) as of June 30, 2013.


(4)	Net carrying value represents the difference between the market value of the TBA contract as of June 30, 2013 and the cost basis and is reported in Derivative assets, at fair value and Derivative liabilities, at fair value on the Consolidated Balance Sheet.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

Gains and losses on the Company's derivative instruments for the three and six month period ended June 30, 2013 are summarized in the table below:



	Three and Six Month Period Ended June 30, 2013⁽¹⁾
Derivative Type	Net Realized Gains (Losses) on Periodic Settlements of Interest Rate Swaps			Net Realized Gains (Losses) Other Than Periodic Settlements of Interest Rate Swaps		Net Realized Gains (Losses) on Derivative Instruments		Change in Net Unrealized Gains (Losses) on Accrued Periodic Settlements of Interest Rate Swaps			Change in Net Unrealized Gains (Losses) Other Than on Accrued Periodic Settlements of Interest Rate Swaps		Change in Net Unrealized Gains (Losses) on Derivative Instruments
Interest Rate Swaps	$	(69	)	$	179	$	110	$	(1,042	)	$	27,238	$	26,196
TBAs				8,266		8,266					2,090		2,090
Total	$	(69	)	$	8,445	$	8,376	$	(1,042	)	$	29,328	$	28,286


⁽¹⁾	The Company did not have derivative positions on or prior to March 31, 2013, and as a result net realized and unrealized gains and losses for three month period ended June 30, 2013 are the same as for the six month period ended June 30, 2013.

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References + Details

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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Schedule of Repurchase Agreements [Table Text Block]

Repurchase Agreements (Tables)

6 Months Ended

Jun. 30, 2013

Repurchase Agreements [Abstract]

The following table details the Company's outstanding borrowings under repurchase agreements as of June 30, 2013:



			Weighted Average
Original Maturity	Borrowings Outstanding		Interest Rate		Days to Maturity
30 days or less	$	700,812	0.38	%	15
31-60 days	289,830		0.37	%	44
61-90 days	225,054		0.37	%	74
Total	$	1,215,696	0.37	%	33

Offsetting of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Offsetting of Assets and Liabilities [Abstract]

Offsetting of Assets and Liabilities [Table Text Block]



Description	Amount of Assets (Liabilities) Presented in the Consolidated Balance Sheet⁽¹⁾			Financial Instruments⁽²⁾⁽³⁾		Cash Collateral (Received) Pledged⁽³⁾			Net Amount
Assets:
Derivative assets, at fair value- Gross	$	31,266
Derivative assets, at fair value-Net	$	28,286		$	—	$	(20,406	)	$	7,880
Liabilities:
Derivative liabilities, at fair value- Gross	$	(2,980	)
Derivative liabilities, at fair value-Net	$	—		$	—	$	—		$	—
Repurchase Agreements	$	(1,215,696	)
Repurchase Agreements-Net	$	(1,215,696	)	$	1,181,779	$	33,917		$	—


(1)	In the Company's Consolidated Balance Sheet, all balances associated with the repurchase agreements and derivative instruments are presented on a gross basis.


(2)	Amounts disclosed in the Financial Instruments column of the table represent collateral that is available to be offset against balances associated with repurchase agreements.


(3)	As collateral is called or posted per counterparty it is generally called or posted across all positions with each respective counterparty.

Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Reconciliation

The following table presents a reconciliation of the earnings/(losses) and shares used in calculating basic EPS for the three and six month periods ended June 30, 2013:



(In thousands except share amounts)	Three Month Period Ended June 30, 2013			Six Month Period Ended June 30, 2013
Numerator:
Net loss	$	(9,704	)	$	(8,574	)
Denominator:
Basic weighted average shares outstanding	6,248,763			3,953,820
Basic Earnings Per Share	$	(1.55	)	$	(2.17	)

Organization and Investment Objective Organization and Investment Objective (Details) - USD ($)		6 Months Ended
	May 01, 2013	Jun. 30, 2013
Private Placement and Initial Public Offering [Line Items]
Stock Issued During Period, Value, New Issues		$ 150,000,000
Remaining Capital Commitment	$ 0
Common Stock [Member]
Private Placement and Initial Public Offering [Line Items]
Stock Issued During Period, Value, New Issues	150,000,000
Proceeds from issuance of common shares	$ 148,500,000
Private Placement [Member] \| Common Stock [Member]
Private Placement and Initial Public Offering [Line Items]
Stock Issued During Period, Shares, New Issues	1,050,000
Share price	$ 20.00
Stock Issued During Period, Value, New Issues	$ 21,000,000.0
IPO [Member] \| Common Stock [Member]
Private Placement and Initial Public Offering [Line Items]
Stock Issued During Period, Shares, New Issues	6,450,000
Share price	$ 20.00

Real Estate Securities Schedule of Real Estate Securities (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Dec. 31, 2012

Jun. 30, 2013

$ 13,596

$ 1,351,479

Agency RMBS [Member]

1,367,638

(9,344)

1,358,294

2,112

(47,737)

$ 1,312,669

3.48%

2.63%

^[1]

9 years 124 days

Non-Agency RMBS [Member]

26,890

$ 62,358

(13,400)

(23,650)

13,490

38,708

117

903

(11)

(801)

$ 13,596

$ 38,810

2.20%

2.73%

8.50%

7.75%

Residential Mortgage Backed Securities [Member]

^[1]

7 years 292 days

5 years 157 days

$ 1,429,996

(32,994)

1,397,002

3,015

(48,538)

$ 1,351,479

3.45%

2.84%

15-year fixed rate mortgages [Member] | Agency RMBS [Member]

^[1]

9 years 62 days

$ 138,155

6,616

144,771

(2,522)

$ 142,249

3.02%

1.96%

30-year fixed rate mortgages [Member] | Agency RMBS [Member]

^[1]

5 years 336 days

$ 1,142,993

61,644

1,204,637

1,080

(45,201)

$ 1,160,516

3.53%

2.67%

Interest-Only [Member] | Agency RMBS [Member]

^[1]

10 years 33 days

$ 86,490

(77,604)

8,886

1,032

(14)

$ 9,904

3.63%

8.45%

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

^[1]

4 years 336 days

[1]	Average lives of MBS are generally shorter than stated contractual maturities. Average lives are affected by the contractual maturities of the underlying mortgages, scheduled periodic payments of principal, and unscheduled prepayments of principal.

Real Estate Securities Schedule of Real Estate Securities by Weighted Average Life (Details) - USD ($) $ in Thousands	Jun. 30, 2013	Dec. 31, 2012
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 1,351,479	$ 13,596
Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	1,312,669
Investment Owned, at Cost	$ 1,358,294
Weighted Average Coupon Rate, Percent	3.48%
Non-Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 38,810	13,596
Investment Owned, at Cost	$ 38,708	$ 13,490
Weighted Average Coupon Rate, Percent	2.73%	2.20%
Less than three years [Member] \| Non-Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 3,692	$ 3,036
Investment Owned, at Cost	$ 3,417	$ 3,001
Weighted Average Coupon Rate, Percent	2.34%	5.57%
Greater than three years and less than seven years [Member] \| Non-Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 18,118	$ 3,994
Investment Owned, at Cost	$ 18,087	$ 3,978
Weighted Average Coupon Rate, Percent	2.85%	0.61%
Greater than seven years and less than eleven years [Member] \| Non-Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 16,276	$ 3,601
Investment Owned, at Cost	$ 16,388	$ 3,608
Weighted Average Coupon Rate, Percent	2.18%	1.10%
Greater than eleven years [Member] \| Non-Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 724	$ 2,965
Investment Owned, at Cost	$ 816	$ 2,903
Weighted Average Coupon Rate, Percent	7.69%	2.49%
Fixed Rate [Member] \| Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 1,302,765
Investment Owned, at Cost	$ 1,349,408
Weighted Average Coupon Rate, Percent	3.47%
Fixed Rate [Member] \| Less than three years [Member] \| Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 4,150
Investment Owned, at Cost	$ 4,260
Weighted Average Coupon Rate, Percent	3.50%
Fixed Rate [Member] \| Greater than three years and less than seven years [Member] \| Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 146,621
Investment Owned, at Cost	$ 149,188
Weighted Average Coupon Rate, Percent	3.09%
Fixed Rate [Member] \| Greater than seven years and less than eleven years [Member] \| Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 1,133,642
Investment Owned, at Cost	$ 1,176,917
Weighted Average Coupon Rate, Percent	3.52%
Fixed Rate [Member] \| Greater than eleven years [Member] \| Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 18,352
Investment Owned, at Cost	$ 19,043
Weighted Average Coupon Rate, Percent	3.71%
Interest-Only [Member] \| Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 9,904
Investment Owned, at Cost	$ 8,886
Weighted Average Coupon Rate, Percent	3.63%
Interest-Only [Member] \| Less than three years [Member] \| Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 1,098
Investment Owned, at Cost	$ 775
Weighted Average Coupon Rate, Percent	4.00%
Interest-Only [Member] \| Greater than three years and less than seven years [Member] \| Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 7,736
Investment Owned, at Cost	$ 7,123
Weighted Average Coupon Rate, Percent	3.58%
Interest-Only [Member] \| Greater than seven years and less than eleven years [Member] \| Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 1,070
Investment Owned, at Cost	$ 988
Weighted Average Coupon Rate, Percent	3.50%
Interest-Only [Member] \| Greater than eleven years [Member] \| Agency RMBS [Member]
Real Estate-Related Securities [Line Items]
Real estate securities, at fair value	$ 0
Investment Owned, at Cost	$ 0
Weighted Average Coupon Rate, Percent	0.00%

Real Estate Securities Interest Income Components (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Interest Income Components [Line Items]
Coupon Income	$ 5,167	$ 5,310
Amortization of premiums and accretion of discounts (net)	(858)	(719)
Interest Income	4,309	4,591
Non-Agency RMBS [Member]
Interest Income Components [Line Items]
Coupon Income	253	396
Amortization of premiums and accretion of discounts (net)	185	324
Interest Income	438	720
Agency RMBS [Member]
Interest Income Components [Line Items]
Coupon Income	4,914	4,914
Amortization of premiums and accretion of discounts (net)	(1,043)	(1,043)
Interest Income	$ 3,871	$ 3,871

Valuation Schedule of Fair Value Measurements (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Dec. 31, 2012

Jun. 30, 2013

Fair Value Level 1 To Level 2 To Level 3 Transfers Amount

$ 0

$ 31,266

^[1]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

2,980

^[1]

Level 1 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Level 2 [Member]

1,302,765

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

1,334,031

Level 3 [Member]

13,596

48,714

Estimate of Fair Value, Fair Value Disclosure [Member]

48,714

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

13,596

1,351,479

Non-Agency RMBS [Member] | Level 1 [Member]

1,382,745

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Non-Agency RMBS [Member] | Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Non-Agency RMBS [Member] | Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Non-Agency RMBS [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]

13,596

38,810

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

15-year fixed rate mortgages [Member] | Agency RMBS [Member] | Level 1 [Member]

$ 13,596

38,810

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

15-year fixed rate mortgages [Member] | Agency RMBS [Member] | Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

15-year fixed rate mortgages [Member] | Agency RMBS [Member] | Level 3 [Member]

142,249

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

15-year fixed rate mortgages [Member] | Agency RMBS [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

30-year fixed rate mortgages [Member] | Agency RMBS [Member] | Level 1 [Member]

142,249

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

30-year fixed rate mortgages [Member] | Agency RMBS [Member] | Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

30-year fixed rate mortgages [Member] | Agency RMBS [Member] | Level 3 [Member]

1,160,516

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

30-year fixed rate mortgages [Member] | Agency RMBS [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest-Only [Member] | Agency RMBS [Member] | Level 1 [Member]

1,160,516

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest-Only [Member] | Agency RMBS [Member] | Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest-Only [Member] | Agency RMBS [Member] | Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest-Only [Member] | Agency RMBS [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]

9,904

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Assets [Member] | Level 1 [Member]

9,904

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Assets [Member] | Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Assets [Member] | Level 3 [Member]

31,266

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Assets [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities [Member] | Level 1 [Member]

31,266

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities [Member] | Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities [Member] | Level 3 [Member]

(2,980)

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest Rate Swap [Member] | Derivative Financial Instruments, Assets [Member]

(2,980)

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest Rate Swap [Member] | Derivative Financial Instruments, Assets [Member] | Level 1 [Member]

26,516

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest Rate Swap [Member] | Derivative Financial Instruments, Assets [Member] | Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest Rate Swap [Member] | Derivative Financial Instruments, Assets [Member] | Level 3 [Member]

26,516

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest Rate Swap [Member] | Derivative Financial Instruments, Assets [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest Rate Swap [Member] | Derivative Financial Instruments, Liabilities [Member]

26,516

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest Rate Swap [Member] | Derivative Financial Instruments, Liabilities [Member] | Level 1 [Member]

320

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest Rate Swap [Member] | Derivative Financial Instruments, Liabilities [Member] | Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest Rate Swap [Member] | Derivative Financial Instruments, Liabilities [Member] | Level 3 [Member]

(320)

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Interest Rate Swap [Member] | Derivative Financial Instruments, Liabilities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

TBA securities [Member] | Derivative Financial Instruments, Assets [Member] | Level 1 [Member]

(320)

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

TBA securities [Member] | Derivative Financial Instruments, Assets [Member] | Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

TBA securities [Member] | Derivative Financial Instruments, Assets [Member] | Level 3 [Member]

4,750

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

TBA securities [Member] | Derivative Financial Instruments, Assets [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

TBA securities [Member] | Derivative Financial Instruments, Liabilities [Member] | Level 1 [Member]

4,750

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

TBA securities [Member] | Derivative Financial Instruments, Liabilities [Member] | Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

TBA securities [Member] | Derivative Financial Instruments, Liabilities [Member] | Level 3 [Member]

(2,660)

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

TBA securities [Member] | Derivative Financial Instruments, Liabilities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

$ (2,660)

[1]	In the Company's Consolidated Balance Sheet, all balances associated with the repurchase agreements and derivative instruments are presented on a gross basis.

Valuation Unobservable Input Reconciliation (Details) - Level 3 [Member] - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2013

Agency RMBS [Member]

Beginning balance

$ 0

Transfers

Transfers into level 3

^[1]

Transfers out of level 3

^[1]

Purchases

9,021

Proceeds from sales

Principal repayments

Amortization/accretion, net

(135)

Net realized gains

Change in net unrealized gains (losses)

1,018

Ending balance

9,904

Change in net unrealized gains (losses) for level 3 assets still held as of June 30, 2013

1,018

Non-Agency RMBS [Member]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

Beginning balance

12,360

13,596

Transfers

Transfers into level 3

^[1]

Transfers out of level 3

^[1]

Purchases

27,446

30,777

Proceeds from sales

(5,309)

Principal repayments

(1,023)

(1,463)

Amortization/accretion, net

185

324

Net realized gains

889

Change in net unrealized gains (losses)

(159)

(4)

Ending balance

38,810

Change in net unrealized gains (losses) for level 3 assets still held as of June 30, 2013

$ (159)

$ 61

[1]	Transfers are assumed to occur at the beginning of the period.

Valuation Qualtitative Information (Details) - Level 3 [Member] - USD ($)
$ / shares in Units, $ in Thousands

Jun. 30, 2013

Dec. 31, 2012

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Non-Agency RMBS [Member] | Market Quotes [Member]

$ 48,714

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Non-Agency RMBS [Member] | Discounted Cash Flows [Member]

31,178

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Non-Agency RMBS [Member] | Minimum [Member] | Market Quotes [Member]

$ 7,632

$ 13,596

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Non-Agency RMBS [Member] | Minimum [Member] | Discounted Cash Flows [Member]

$ 29.75

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Yield

6.70%

6.20%

Projected Collateral Losses

28.90%

12.60%

4.50%

11.30%

Projected Collateral Recoveries

7.00%

6.80%

Non-Agency RMBS [Member] | Maximum [Member] | Market Quotes [Member]

14.10%

3.00%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Non-Agency RMBS [Member] | Maximum [Member] | Discounted Cash Flows [Member]

$ 102.79

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Yield

14.20%

20.40%

Projected Collateral Losses

60.00%

52.20%

27.40%

41.40%

Projected Collateral Recoveries

13.60%

33.20%

Non-Agency RMBS [Member] | Weighted Average [Member] | Market Quotes [Member]

51.00%

52.70%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Non-Agency RMBS [Member] | Weighted Average [Member] | Discounted Cash Flows [Member]

^[1]

$ 81.21

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Yield

10.80%

^[1]

8.50%

^[2]

Projected Collateral Losses

41.90%

^[1]

29.40%

^[2]

14.30%

^[1]

26.90%

^[2]

Projected Collateral Recoveries

10.40%

^[1]

23.80%

^[2]

Interest-Only [Member] | Agency RMBS [Member] | Market Quotes [Member]

33.40%

^[1]

19.90%

^[2]

Projected Total

100.00%

^[1]

100.00%

^[2]

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Interest-Only [Member] | Agency RMBS [Member] | Income Approach Valuation Technique [Member]

$ 4,044

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Interest-Only [Member] | Agency RMBS [Member] | Minimum [Member]

$ 5,860

Fair Value Inputs, Assets, Quantitative Information [Line Items]

FairValueInputsLiborOas

^[3]

4.80%

Interest-Only [Member] | Agency RMBS [Member] | Minimum [Member] | Market Quotes [Member]

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Interest-Only [Member] | Agency RMBS [Member] | Minimum [Member] | Income Approach Valuation Technique [Member]

$ 5.25

Fair Value Inputs, Assets, Quantitative Information [Line Items]

69.80%

Interest-Only [Member] | Agency RMBS [Member] | Maximum [Member]

26.70%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

FairValueInputsLiborOas

^[3]

9.81%

Interest-Only [Member] | Agency RMBS [Member] | Maximum [Member] | Market Quotes [Member]

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Interest-Only [Member] | Agency RMBS [Member] | Maximum [Member] | Income Approach Valuation Technique [Member]

$ 21.00

Fair Value Inputs, Assets, Quantitative Information [Line Items]

73.30%

Interest-Only [Member] | Agency RMBS [Member] | Weighted Average [Member]

30.20%

Fair Value Inputs, Assets, Quantitative Information [Line Items]

FairValueInputsLiborOas

^[1],[3]

6.32%

Interest-Only [Member] | Agency RMBS [Member] | Weighted Average [Member] | Market Quotes [Member]

Fair Value Inputs, Assets, Quantitative Information [Line Items]

Interest-Only [Member] | Agency RMBS [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member]

^[1]

$ 13.62

Fair Value Inputs, Assets, Quantitative Information [Line Items]

^[1]

71.90%

^[1]

28.10%

Projected Total

^[1]

100.00%

[1]	Averages are weighted based on the fair value of the related instrument.
[2]	Averages are weighted based on the fair value of the related instrument.
[3]	Shown in basis points.

Derivative Instruments Schedule of Derivatves (Details) - USD ($)
$ in Thousands

Jun. 30, 2013

Dec. 31, 2012

$ 31,266

^[1]

$ 0

(2,980)

^[1]

$ 0

Derivative notional, net

(1,126,714)

Interest Rate Swap [Member]

28,286

780,900

Derivative Financial Instruments, Assets [Member]

26,196

(1,036,414)

Derivative Financial Instruments, Assets [Member] | Interest Rate Swap [Member]

^[1]

28,286

26,516

Derivative Financial Instruments, Assets [Member] | TBA securities- sale contracts [Member]

(740,900)

^[2]

4,581

Derivative Financial Instruments, Assets [Member] | TBA securities- purchase contracts [Member]

^[3]

(324,864)

^[2]

169

Derivative Financial Instruments, Liabilities [Member]

^[3]

29,350

(90,300)

Derivative Financial Instruments, Liabilities [Member] | Interest Rate Swap [Member]

^[1]

(40,000)

Derivative Financial Instruments, Liabilities [Member] | TBA securities- sale contracts [Member]

(320)

^[3]

(95,300)

Derivative Financial Instruments, Liabilities [Member] | TBA securities- purchase contracts [Member]

^[2]

(737)

^[3]

45,000

^[2]

$ (1,923)

[1]	In the Company's Consolidated Balance Sheet, all balances associated with the repurchase agreements and derivative instruments are presented on a gross basis.
[2]	Net carrying value represents the difference between the market value of the TBA contract as of June 30, 2013 and the cost basis and is reported in Derivative assets, at fair value and Derivative liabilities, at fair value on the Consolidated Balance Sheet.
[3]	Notional amount represents the principal balance of the underlying Agency MBS.

Derivative Instruments Schedule of Interest Rate Swaps by Maturity (Details) $ in Thousands	Jun. 30, 2013 USD ($)
Derivative [Line Items]
Derivative, Fair Value, Net	$ 28,286
Interest Rate Swap [Member]
Derivative [Line Items]
Derivative notional	780,900
Derivative, Fair Value, Net	$ 26,196
Weighted Average Pay Rate	1.74%
Weighted Average Receive Rate	0.27%
Weighted Average Years to Maturity	9 years 176 days
Year 2017 [Member] \| Interest Rate Swap [Member]
Derivative [Line Items]
Derivative notional	$ 40,000
Derivative, Fair Value, Net	$ 181
Weighted Average Pay Rate	1.05%
Weighted Average Receive Rate	0.27%
Weighted Average Years to Maturity	3 years 347 days
Year 2018 [Member] \| Interest Rate Swap [Member]
Derivative [Line Items]
Derivative notional	$ 183,000
Derivative, Fair Value, Net	$ 4,117
Weighted Average Pay Rate	1.03%
Weighted Average Receive Rate	0.27%
Weighted Average Years to Maturity	4 years 325 days
Year 2020 [Member] \| Interest Rate Swap [Member]
Derivative [Line Items]
Derivative notional	$ 271,900
Derivative, Fair Value, Net	$ 8,711
Weighted Average Pay Rate	1.61%
Weighted Average Receive Rate	0.27%
Weighted Average Years to Maturity	6 years 329 days
Year 2023 [Member] \| Interest Rate Swap [Member]
Derivative [Line Items]
Derivative notional	$ 204,000
Derivative, Fair Value, Net	$ 10,192
Weighted Average Pay Rate	2.10%
Weighted Average Receive Rate	0.27%
Weighted Average Years to Maturity	9 years 325 days
Year 2043 [Member] \| Interest Rate Swap [Member]
Derivative [Line Items]
Derivative notional	$ 82,000
Derivative, Fair Value, Net	$ 2,995
Weighted Average Pay Rate	3.25%
Weighted Average Receive Rate	0.26%
Weighted Average Years to Maturity	29 years 343 days

Derivative Instruments Schedule of TBA Securities (Details) - USD ($)
$ in Thousands

Jun. 30, 2013

Dec. 31, 2012

Derivative notional, net

$ (1,126,714)

31,266

^[1]

$ 0

(2,980)

^[1]

$ 0

28,286

TBA securities [Member]

Derivative notional, net

^[2]

(345,814)

^[3]

(358,657)

^[4]

(356,567)

Derivative Financial Instruments, Assets [Member]

^[5]

2,090

(1,036,414)

Derivative Financial Instruments, Assets [Member] | TBA securities- purchase contracts [Member]

^[1]

28,286

^[2]

29,350

^[3]

28,519

^[4]

28,688

Derivative Financial Instruments, Assets [Member] | TBA securities- sale contracts [Member]

^[5]

169

^[2]

(324,864)

^[3]

(336,878)

^[4]

(332,297)

Derivative Financial Instruments, Liabilities [Member]

^[5]

4,581

(90,300)

Derivative Financial Instruments, Liabilities [Member] | TBA securities- purchase contracts [Member]

^[1]

^[2]

45,000

^[3]

45,909

^[4]

43,986

Derivative Financial Instruments, Liabilities [Member] | TBA securities- sale contracts [Member]

^[5]

(1,923)

^[2]

(95,300)

^[3]

(96,207)

^[4]

(96,944)

^[5]

$ (737)

[1]	In the Company's Consolidated Balance Sheet, all balances associated with the repurchase agreements and derivative instruments are presented on a gross basis.
[2]	Notional amount represents the principal balance of the underlying Agency MBS.
[3]	Cost basis represents the forward price to be paid for the underlying Agency MBS.
[4]	Market value represents the current market value of the underlying Agency MBS (on a forward delivery basis) as of June 30, 2013.
[5]	Net carrying value represents the difference between the market value of the TBA contract as of June 30, 2013 and the cost basis and is reported in Derivative assets, at fair value and Derivative liabilities, at fair value on the Consolidated Balance Sheet.

Derivative Instruments Schedule of Gains and Losses on Derivative Instruments (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2013

Net realized gains losses on periodic settements of interest rate swaps

^[1]

$ (69)

Net realized gains losses other than on periodic settements of interest rate swaps

^[1]

8,445

Unrealized gain loss on accrued periodic settlements on interest rate swaps

8,376

^[1]

$ 8,376

^[1]

(1,042)

Unrealized gain loss on other than accured periodic settlements on interest rate swaps

^[1]

29,328

Change in net unrealized gains on derivative instruments

28,286

^[1]

$ 28,286

Interest Rate Swap [Member]

Net realized gains losses on periodic settements of interest rate swaps

^[1]

(69)

Net realized gains losses other than on periodic settements of interest rate swaps

^[1]

179

Unrealized gain loss on accrued periodic settlements on interest rate swaps

^[1]

110

^[1]

(1,042)

Unrealized gain loss on other than accured periodic settlements on interest rate swaps

^[1]

27,238

Change in net unrealized gains on derivative instruments

^[1]

26,196

TBA securities [Member]

Net realized gains losses other than on periodic settements of interest rate swaps

^[1]

8,266

Unrealized gain loss on other than accured periodic settlements on interest rate swaps

^[1]

8,266

^[1]

2,090

Change in net unrealized gains on derivative instruments

^[1]

$ 2,090

[1]	The Company did not have derivative positions on or prior to March 31, 2013, and as a result net realized and unrealized gains and losses for three month period ended June 30, 2013 are the same as for the six month period ended June 30, 2013.

Repurchase Agreements (Details)
$ in Thousands

6 Months Ended

Jun. 30, 2013

USD ($)

counterparties

Dec. 31, 2012

USD ($)

Number of Counterparties with Outstanding Repurchase Agreements | counterparties

$ 1,215,696

^[1]

$ 0

Repurchase Agreement Counterparty, Weighted Average Maturity of Agreements

0.37%

33 days

Repurchase Agreements, collateral amount

^[2],[3]

$ 1,181,779

Minimum [Member]

Repurchase Agreements Maturity

30 days

Maximum [Member]

Repurchase Agreements Maturity

90 days

Maturity up to 30 days [Member]

$ 700,812

Repurchase Agreement Counterparty, Weighted Average Maturity of Agreements

0.38%

15 days

Maturity 31 to 60 days [Member]

$ 289,830

Repurchase Agreement Counterparty, Weighted Average Maturity of Agreements

0.37%

44 days

Matuirty 61 to 90 days [Member]

$ 225,054

Repurchase Agreement Counterparty, Weighted Average Maturity of Agreements

0.37%

74 days

Deutsche Bank Securities [Member]

Repurchase Agreement Counterparty, Amount at Risk

$ 24,800

Amout at risk for repurchase agreements to shareholders' equity

14.60%

Repurchase Agreement Counterparty, Weighted Average Maturity of Agreements

33 days

[1]	In the Company's Consolidated Balance Sheet, all balances associated with the repurchase agreements and derivative instruments are presented on a gross basis.
[2]	Amounts disclosed in the Financial Instruments column of the table represent collateral that is available to be offset against balances associated with repurchase agreements.
[3]	As collateral is called or posted per counterparty it is generally called or posted across all positions with each respective counterparty.

Offsetting of Assets and Liabilities (Details) - USD ($)
$ in Thousands

Jun. 30, 2013

Dec. 31, 2012

Offsetting Assets and Liabilities [Line Items]

$ 31,266

^[1]

$ 0

28,286

(2,980)

^[1]

Repurchase agreements, net

(1,215,696)

^[1]

$ 0

^[1]

(1,215,696)

Repurchase Agreements, collateral amount

^[2],[3]

1,181,779

Cash Collateral Received Pledged for Repurchase Agreements

^[3]

33,917

Repurchse agreements and related collateral, net

Derivative Financial Instruments, Liabilities [Member]

Offsetting Assets and Liabilities [Line Items]

Securities collateral on derivatives

^[1]

^[2],[3]

Cash collateral received or pledged for derivatives

^[3]

Derivatives and related collateral, net

Derivative Financial Instruments, Assets [Member]

Offsetting Assets and Liabilities [Line Items]

Securities collateral on derivatives

^[1]

28,286

^[2],[3]

Cash collateral received or pledged for derivatives

^[3]

(20,406)

Derivatives and related collateral, net

$ 7,880

[1]	In the Company's Consolidated Balance Sheet, all balances associated with the repurchase agreements and derivative instruments are presented on a gross basis.
[2]	Amounts disclosed in the Financial Instruments column of the table represent collateral that is available to be offset against balances associated with repurchase agreements.
[3]	As collateral is called or posted per counterparty it is generally called or posted across all positions with each respective counterparty.

Management Fees (Details) $ in Thousands	3 Months Ended	6 Months Ended
Management Fees (Details) $ in Thousands	Jun. 30, 2013 USD ($)	Jun. 30, 2013 USD ($)
Management Fees Disclosure [Abstract]
Annual base management fee percentage	1.50%	1.50%
Management fees	$ 703	$ 823

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Earnings Per Share [Abstract]
Net loss	$ (9,704)	$ (8,574)
Basic weighted average shares outstanding	6,248,763	3,953,820
Basic Earnings Per Share (in dollars per share)	$ (1.55)	$ (2.17)

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.21)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 18
-Article 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 36, 37, 38
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Weighted-Average Number of Common Shares Outstanding
-URI http://asc.fasb.org/extlink&oid=6528421

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.