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American Capital Agency (AGNC -0.7%) is getting no pressure from its lenders to reduce leverage...

American Capital Agency (AGNC -0.7%) is getting no pressure from its lenders to reduce leverage in light of the decline in mortgage prices, says CIO Gary Kain, responding to a question at the Morgan Stanley conference (webcast) (slides). If anything, he says, AGNC has room to take up leverage to an even higher level (it averaged 8.2x in Q1). Previous: The presentation discloses book value loss in Q2 through June 7 is similar to that of Q1.
Comments (7)
  • Sean Emory
    , contributor
    Comments (39) | Send Message
     
    Good news, higher spread, more leverage equals more profits. Exit will be key here going forward.
    12 Jun 2013, 04:14 PM Reply Like
  • nicolehankerson
    , contributor
    Comments (2) | Send Message
     
    Do you think investors will double down on this stock or sell?
    12 Jun 2013, 05:54 PM Reply Like
  • ChuckJ
    , contributor
    Comments (74) | Send Message
     
    The market has not perceived this yet WRT $AGNC.
    12 Jun 2013, 05:09 PM Reply Like
  • adrian816
    , contributor
    Comments (177) | Send Message
     
    Regardless of the long term prospects, if the stock price goes down just a little the HFTs and stop-loss orders might kick in, pushing the price down even further.
    12 Jun 2013, 06:10 PM Reply Like
  • cheeryble
    , contributor
    Comments (134) | Send Message
     
    "Regardless of the long term prospects, if the stock price goes down just a little the HFTs and stop-loss orders might kick in, pushing the price down even further."

     

    ....or already has happened and ready for rebound?
    On the other hand, four fingers and a thumb.
    12 Jun 2013, 11:21 PM Reply Like
  • Ilioula
    , contributor
    Comments (34) | Send Message
     
    AGNC should not be considered as an investment until the new, lower, dividend is announced. Period.
    13 Jun 2013, 06:17 AM Reply Like
  • moishep
    , contributor
    Comments (23) | Send Message
     
    Amen, Illola. Way too many unknowns make this a crapshoot.
    13 Jun 2013, 06:22 PM Reply Like
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