Orchid Island Capital, Inc (ORC) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $20.42 million, or $ 0.72 a share in the quarter, against a net profit of $7.81 million, or $0.36 a share in the last year period.     

The company has not recorded any revenues for the current as well as previous quarter.

Total expenses were $2.51 million for the quarter, up 19.60 percent or $0.41 million from year-ago period.

Operating loss for the quarter was $2.51 million, compared with an operating loss of $2.10 million in the previous year period.

Commenting on the fourth quarter, Robert E. Cauley, chairman and chief executive officer, said, "The outlook for the economy, interest rates and the Federal Reserve (the "Fed") changed dramatically during the fourth quarter of 2016 as Donald Trump unexpectedly won the U.S. Presidential election. The Republican Party retained both houses of Congress, which also surprised the markets. The markets reacted strongly to these developments and interest rates moved significantly higher. In what is commonly referred to as a "risk on" trade, treasury securities declined in price while other assets that carry more risk ��" equities, commodities, riskier bonds, etc. ��" all increased. The market expects expansionary fiscal policy ��" such as tax cuts/reform, infrastructure spending, less regulation and a very pro-business administration going forward. As a result, the market expects the Fed to follow a more aggressive policy in removing accommodation from the economy, as many of the expected policy proposals should be both expansionary and inflationary. Comments by the Fed chair at the conclusion of their December meeting, a meeting at which they increased the Fed Funds target rate by 25 basis points, were taken as quite hawkish by the market. The Summary of Economics Projections, or SEP, implied the Fed expects three Fed Funds target rate increases in 2017."

Net receivables were at $11.51 million as on Dec. 31, 2016, up 35.59 percent or $3.02 million from year-ago.

Investments stood at $3,032.54 million as on Dec. 31, 2016, up 40.48 percent or $873.86 million from year-ago.

Total assets jumped 40.01 percent or $896.86 million to $3,138.69 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,805.92 million as on Dec. 31, 2016, up 41.10 percent or $817.33 million from year-ago.

Return on assets was negative at 0.49 percent in the quarter against a positive 0.45 percent in the last year period. Return on equity was negative at 6.14 percent in the quarter against a positive 3.08 percent in the last year period.