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    Brian Vescio

    Research Analyst at Piper Sandler & Co.

    Brian Vescio is Managing Director and Head of Structured Products Trading at Piper Sandler & Co., specializing in fixed income and structured products with an emphasis on non-agency mortgage-backed and asset-backed securities. Over his career, he has led structured credit divisions at both StoneX Group and Nomura Securities, as well as at Sandler O’Neill before and after its merger with Piper Sandler. Vescio rejoined Piper Sandler in 2024, bringing over two decades of experience; he previously spent four years at the firm and established a track record for managing significant trading efforts across leading structured product markets. He holds a Master of Business Administration from Fordham University, a bachelor’s degree from Villanova University, and maintains standard FINRA securities registrations for senior trading professionals.

    Brian Vescio's questions to Ellington Credit (EARN) leadership

    Brian Vescio's questions to Ellington Credit (EARN) leadership • Q3 2024

    Question

    Brian Vescio of Piper Sandler & Co. asked for commentary on the credit quality of the CLO book, expectations for delinquencies and losses, and the dividend outlook as the portfolio rotation continues and leverage declines.

    Answer

    Head of Corporate Credit Gregory Borenstein discussed credit quality, noting that while current default rates are low, a sustained high-rate environment could increase stress. He provided context on historical default rates in benign and stressed scenarios. CEO Laurence Penn addressed the dividend, stating that the higher net interest margin from the growing CLO portfolio is offsetting lower leverage, and that adjusted distributable earnings continue to provide good support for the current dividend.

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