ORC swings to $69M profit as portfolio scales 74% YoY; Fed pivots to hiking under Warsh

Filed July 24, 2026 · Period ending June 30, 2026 · Compared to 10-Q Jul 25, 2025 · ~2 min read

Key Changes

• high

  Net income swung from a $16.5M loss in H1 2025 to $69.2M profit in H1 2026 ($0.35/share), driven by $117M net interest income (vs $42.9M) and smaller mark-to-market losses as the RMBS portfolio grew 74% to $11.2B average.

  MD&A: Net Income verify on EDGAR →
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  Kevin Warsh replaced Jerome Powell as Fed Chair in May 2026 and immediately shifted policy to a hiking bias, prioritizing inflation control. Market expectations flipped from rate cuts to nearly two hikes by year-end 2026.

  MD&A: Fed Policy verify on EDGAR →
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  Iran War ceasefire (April-June 2026) collapsed; hostilities resumed, disrupting Strait of Hormuz shipping and driving commodity prices back toward war-peak levels, adding persistent upward pressure on inflation.

  MD&A: Geopolitical Risk verify on EDGAR →