Seeking Alpha

It's all about book value at American Capital

  • American Capital Agency (AGNC) +4.4% premarket after book value fell just 11.8% in Q2 to $25.51 (with the stock yesterday closing at a 14.3% discount)
  • Despite a near-calamitous couple of quarters, the company reports access to funding was uninterrupted and the average "haircut" on repo borrowings was unchanged
  • Funding costs of 1.43% vs. 1.28% in Q1 due to entering into longer-dated swaps
  • Falling book value required portfolio size to be cut to maintain leverage level
  • $91.7B investment  portfolio vs. $103.6B in Q1; leverage still increases to 8.5x from 8.1x
  • Conference call set for 8:30 ET
Comments (1)
  • kingcozzi
    , contributor
    Comments (127) | Send Message
     
    The question is, how much will book value deteriorate going forward. Obviously the market is pricing in the negatives, but there still may be some downside left.
    30 Jul 2013, 11:20 AM Reply Like
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