Western Asset Mortgage Capital Corporation functions as a real estate investment trust (REIT), primarily engaged in the acquisition, management, and investment of a varied portfolio of assets tied to residential real estate. Its holdings notably include non-qualified mortgage loans, non-agency residential mortgage-backed securities (RMBS), and other similar investment vehicles. Recognized as a qualifying REIT for federal income tax purposes, the company typically circumvents federal corporate income taxes, provided it distributes a minimum of 90% of its taxable earnings to shareholders.