EXHIBIT 12.1

ANWORTH MORTGAGE ASSET CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO COMBINED

FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(in thousands, except ratios)

(unaudited)

Computation of ratio of earnings to combined fixed charges and preferred stock dividends:

	Year Ended December 31,
	2006			2005		2004		2003		2002
Fixed charges(1)	$	307,096		$	242,509	$	98,304	$	45,661	$	29,576
Preferred stock dividends		4,044			3,901		369		—		—
Combined fixed charges and preferred stock dividends	$	311,140		$	246,410	$	98,673	$	45,661	$	29,576
Fixed charges	$	311,140		$	246,410	$	98,673	$	45,661	$	29,576
Net income (loss)		(14,260	)		28,885		55,805		50,195		31,670
	$	296,880		$	275,295	$	154,478	$	95,856	$	61,246
Ratio of earnings to combined fixed charges and preferred stock dividends		0.95			1.12		1.57		2.10		2.07

(1) Fixed charges consist of interest expense on all indebtedness.