Exhibit 12.1

Arlington Asset Investment Corp.

Computation of Ratio of Earnings to Fixed Charges

(dollars in thousands)

	Nine Months Ended		Years Ended December 31,
	September 30, 2010		2009		2008			2007			2006			2005
Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees	$	18,351	$	140,981	$	(303,203	)	$	(660,724	)	$	(74,863	)	$	(239,773	)
Distributed income of equity investees		222		326		7,355			1,933			13,821			19,172
Fixed charges:
Interest expense and amortization of debt discount and premium on all indebtedness		828		3,645		72,751			472,100			557,257			511,125
Rentals		39		77		251			2,316			3,071			1,992
Total fixed charges	$	867	$	3,722	$	73,002		$	474,416		$	560,328		$	513,117
Pre-tax income (loss) from continuing operations adjusted to exlude income or loss from equity investees plus fixed charges and distributed income of equity investees	$	19,440	$	145,029	$	(222,846	)	$	(184,375	)	$	499,286		$	292,516
Ratio of earnings to fixed charges		22.4		39.0		(A	)		(A	)		(A	)		(A	)

(A) Due to the company’s losses in 2008, 2007, 2006, and 2005, 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, $61,042, and $220,601, respectively, to achieve coverage of 1:1 in those years.