The management fee is payable quarterly in arrears. We believe that our Manager is uniquely qualified to implement our strategy. Ellington has a focused investment team for each of our targeted asset classes. Our Manager is subject to the direction and oversight of our Board of Trustees. We cannot assure you that we will be able to comply with such requirements. 8226;We operate in a highly competitive market. &# Such securities therefore are considered to be highly speculative investments. The process of transition may also involve operational risks. We could also be responsible for property taxes. Repurchased loans are typically worth only a fraction of the original price. Furthermore, we may not obtain third party valuations for all of our assets. We may invest in credit risk transfer securities, or "CRTs." Furthermore, such programs could also have a material adverse effect on our business. Such loss mitigation efforts may be unsuccessful or not cost effective" above. We do not have any employees of our own. Our Manager is authorized to follow very broad guidelines in pursuing our strategy. Investing in our common shares involves a high degree of risk. 48Item 1B. Unresolved Staff CommentsNone. The unemployment rate spiked to 11.1% at June 30th, from 4.4% at March 31st. All inter-company balances and transactions have been eliminated. Therefore, management generally uses third-party valuations when available. These provisions may differ for each of our lenders. We used $13.8 million to pay dividends and $1.0 million to repurchase common shares. Accordingly, we express no such opinion. The Company satisfied all of these margin calls. The leveling of each financial instrument is reassessed at the end of each period. However, many of the Company\'s financial instruments are not traded in an active market. These assumptions are re-evaluated not less than quarterly. The Company uses TBAs to mitigate interest rate risk, usually by taking short positions. TBAs are accounted for by the Company as financial derivatives. It may purchase or write put, call, straddle, or other similar options contracts. In general, the Company\'s options contracts contain forward-settling premiums. The Company has chosen to elect the FVO for its financial derivatives. The vesting period for restricted share awards is typically one to two years. Fair value measurements are impacted by the interrelationships of these inputs. See "—Failure to Qualify" in the Prospectus.106PART IIIItem 10. The Company holds its cash at institutions that it believes to be highly creditworthy.
