Arlington Asset Investment (AAIC) 10-Q 2011 Q3 Quarterly report

Exhibit 12.01

Computation of Ratio of Earnings to Fixed Charges

(dollars in thousands)

	Nine Months Ended September 30,		Year Ended December 31,
	2011		2010		2009		2008			2007			2006
Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees	$	9,394	$	27,087	$	140,981	$	(303,203	)	$	(660,724	)	$	(74,863	)
Distributed income of equity investees		63		222		326		7,355			1,933			13,821
Fixed charges:
Interest expense and amortization of debt discount and premium on all indebtedness		1,681		1,155		3,645		72,751			472,100			557,257
Rentals		43		54		77		251			2,316			3,071
Total fixed charges	$	1,724	$	1,209	$	3,722	$	73,002		$	474,416		$	560,328
Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees plus fixed charges and distributed income of equity investees	$	11,181	$	28,518	$	145,029	$	(222,846	)	$	(184,375	)	$	499,286
Ratio of earnings to fixed charges		6.5		23.6		39.0	(A		)	(A		)	(A		)

(A)  Due to the Company's losses in 2008, 2007 and 2006, the ratio coverage in these years was less than 1:1.  The Company would have had to generate additional earnings of $295,848, $658,791 and $61,042, respectively, to achieve coverage of 1:1 in those years.