American Capital Agency Corp. (AGNC) - NASDAQ
  • Sep. 16, 2015, 3:15 PM
    • "This is very unlikely to be a typical hiking cycle," says American Capital Agency (AGNC) CIO Gary Kain, presenting at the Barclays financial services conference. He notes past tightening cycles have come about amid fast-improving economies, something not even the hawks would argue is happening today. Instead this hike is necessary because of years of cumulative improvement in the labor market, while current economic activity is moderate at best.
    • Presentation slides
    • Transcript
    • Don't write off the REIT space just yet, says Kain, arguing that 20% discounts to book value across the industry are pricing in a lot of bad news.
    | Sep. 16, 2015, 3:15 PM | 10 Comments
  • Sep. 14, 2015, 4:05 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.20/share monthly dividend, in line with previous.
    • Forward yield 12.64%
    • Payable Oct. 9; for shareholders of record Sept. 30; ex-div Sept. 28.
    | Sep. 14, 2015, 4:05 PM | 2 Comments
  • Sep. 8, 2015, 11:28 AM
    • "[Mortgage REITs] have almost never been as cheap as they are right now," says Nomura's Brock Vandervilet, who recommended buys in Annaly Capital (NLY +0.5%) and American Capital Agency (AGNC +0.4%) a bit less than a month ago.
    • Barron's Current Yield
    • They're cheap for a reason, and companies which borrow short, lend long, and toss in a healthy amount of leverage can be expected to struggle when funding costs rise faster than the yield on the assets they hold (also known as a flattening yield curve), and most expect a rate hike if not this month, then soon after. The question at hand is whether the flatter yield curve has been priced in (or more than priced in), and discounts to book value north of 20% for at least some in the sector suggests it has.
    • “It is going to take forever and a day for rates to rise, which is going to give these companies plenty of time to reposition,” says Vandervilet.
    • KBW likes Annaly, American Capital, and CYS Investments (CYS +0.5%), and Chimera (CIM +0.8%) as having the most upside if somehow there is no rate increase or in a "slow, but steady" rate-hike scenario.
    • Wunderlich's Merrill Ross would add Invesco (IVR +0.4%) to that group as being attractive despite the headwinds.
    • ETFs: MORL, REM, MORT, LMBS
    | Sep. 8, 2015, 11:28 AM | 46 Comments
  • Sep. 1, 2015, 2:54 PM
    • The financial sector is leading the market lower today, but these sessions often see money flow into REITs. There's no green to be found, but mortgage REITs like Annaly Capital (NLY -0.3%), American Capital Agency (AGNC -0.2%), Anworth Mortgage (ANH -0.2%), Chimera (CIM -0.1%), CYS Investments (CYS -0.1%), Invesco (IVR -0.3%), and Dynex (DX -0.7%) are outperforming by a wide margin.
    • Equity REITs are doing better than the XLF and S&P 500, but still sharply lower: Realty Income (O -1.5%), Omega Healthcare (OHI -2.2%), HCP (HCP -1.2%), Gramercy Property (GPT -1.9%), Equity Residential (EQR -2.4%), Kimco (KIM -2.1%), Simon Property (SPG -2.2%), Public Storage (PSA -1.1%), Hospitality Properties (HPT -2.1%), Stag Industrial (STAG -1.2%)
    • ETFs: IYR, VNQ, MORL, REM, MORT, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, DRA, FREL, WREI, LMBS, IARAX
    | Sep. 1, 2015, 2:54 PM | 33 Comments
  • Aug. 21, 2015, 3:30 PM
    • These income favorites often catch a wave of buying when the major averages sell off and yields fall, but the panicky action today is taking down nearly all equities.
    • The iShares DJ U.S. Real Estate ETF (IYR -1.7%) and the iShares FTSE NAREIT Mortgage REIT ETF (REM -1.6%), however, are outperforming the S&P 500's 2.7% decline.
    • Previously: Just a modest rally for Treasurys as stocks crumble (Aug. 21)
    • Leading the mREITs lower is Javelin Mortgage (JMI -5.9%), with SA contributor ColoradoWealthManagementFund noting the company has stopped buying back stock despite its wide discount to book value. The sector as a whole looks like it will continue to have to deal with widening spreads and rising prepayments, and still have a looming rate hike cycle on the horizon.
    • Armour Residential (ARR -2%), CYS Investments (CYS -1.8%), Annaly (NLY -1.2%), American Capital Agency (AGNC -1.8%), Arlington Asset (AI -2.4%), Orchid Island (ORC -2.5%), Dynex (DX -2%), Capstead Mortgage (CMO -1.3%).
    • Equity REITs: Realty Income (O -0.7%), Vereit (VER -2.3%), Health Care REIT (HCN -1%), HCP (HCP -1.1%), Gramercy Property (GPT -3.1%), Equity Residential (EQY -1.6%), Simon Property (SPG -0.5%), Kimco (KIM -2.1%), Hospitality Properties (HPT -2.8%), Stag Industrial (STAG -1.4%), American Campus (ACC -1.1%), Public Storage (PSA -1%).
    | Aug. 21, 2015, 3:30 PM | 38 Comments
  • Aug. 20, 2015, 1:41 PM
    • Searching for green as the averages get routed, one finds a few pockets of only modest strength in some of the beaten-down REIT names as the 10-year Treasury yield slips to 2.08% and rate hike expectations move from September to December, or even 2016.
    • Sticking with a September rate hike is the team at Citigroup, which continues to believe only a "bunker buster" will prevent the Fed from hiking next month. The group notes an overlooked line in yesterday's FOMC minutes in which the committee talked about managing the risks resulting from prolonged low rates. It's a "smoking gun," says Citi, meaning a rate hike is coming sooner rather than later.
    • Annaly Capital (NLY +0.2%), American Capital Agency (AGNC +0.6%), Realty Income (O +0.8%), Omega Healthcare (OHI +0.9%), Public Storage (PSA -0.1%).
    | Aug. 20, 2015, 1:41 PM | 37 Comments
  • Aug. 13, 2015, 9:52 AM
    • Compass Point joins Nomura in upgrading Annaly Capital (NLY -0.1%) and American Capital Agency (AGNC -0.1%) to Buy, with price targets of $11 and $22, respectively.
    • "The sector valuation, improved fundamentals, combined with a reversal in benchmark interest rates (namely the 10-year UST) and a change in group sentiment have led us to upgrade our opinion on this out of favor group," says analyst Jason Steward, boosting his outlook on the entire agency mREIT space to positive.
    • Also standing to benefit, says Steward, is CYS Investments (CYS -0.4%).
    • ETFs: MORL, REM, MORT, LMBS
    • Previously: Nomura gets bullish on mortgage REITs (Aug. 12)
    | Aug. 13, 2015, 9:52 AM | 14 Comments
  • Aug. 12, 2015, 4:31 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.20/share monthly dividend, in line with previous.
    • Forward yield 12.08%
    • Payable Sept. 8; for shareholders of record Aug. 31; ex-div Aug. 27.
    | Aug. 12, 2015, 4:31 PM | 7 Comments
  • Aug. 12, 2015, 9:47 AM
    • Damage to book value in Q2 is priced in and unlikely to recur based on his bank's outlook for interest rates, says analyst Brock Vandervliet, upgrading Annaly Capital (NLY +0.5%) and American Capital Agency (AGNC +1%) to Buy from Neutral, with price targets for both lifted by $2 to $12 and $23, respectively.
    • Vandervliet also takes note of the sizable buybacks now at work for the two.
    • ETFs: MORL, REM, MORT, LMBS
    | Aug. 12, 2015, 9:47 AM | 17 Comments
  • Aug. 11, 2015, 12:59 PM
    • The Fed may be determined to hike rates, but deflationary signals are everywhere, with Beijing the latest government to acknowledge such with its devaluation overnight.
    • Crude oil has taken out a new six-year low, tumbling another 4% to $43.15 per barrel, and copper's 3% decline has brought it to a fresh six-year low. The grains are all down by 2% or more, but gold is marginally higher.
    • The major U.S. averages are down more than 1%, and Europe fell 1.5% today.
    • The 10-year Treasury yield is lower by a full ten basis points to 2.13%.
    • Leading the heavily discounted mREIT sector higher are Annaly Capital (NLY +1.1%), American Capital Agency (AGNC +1.3%), CYS Investments (CYS +1.2%), New York Mortgage (NYMT +1.6%), Hatteras Financial (HTS +1.3%), Capstead (CMO +1%), Anworth (ANH +1.4%), Dynex Capital (DX +2.6%), and AG Mortgage (MITT +1.6%).
    • ETFs: MORL, REM, MORT, LMBS
    • In equity REITs: National Retail (NNN +1.2%), Equity Residential (EQR +1.5%), AvalonBay (AVB +1.2%), General Growth (GGP +1.9%), Kimco (KIM +1.4%), Whitestone REIT (WSR +2.9%), Washington Real Estate (WRE +1.2%), Hospitality Properties (HPT +2.3%), Chamber Street (CSG +1.1%).
    • ETFs: IYR, VNQ, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, DRA, FREL, WREI, IARAX
    | Aug. 11, 2015, 12:59 PM | 19 Comments
  • Jul. 29, 2015, 11:35 AM
    • "The agency market had one of its worst performances in seven years, and there was no way to avoid the punitive, unrealized mark-to-market losses in American Capital's (AGNC -1%) portfolio," says analyst Merrill Ross, reiterating her Buy rating and $21 price target.
    • Lower leverage could mean the chance of another dividend cut, though this could be offset by opportunistic investment in MBS at lower prices, says Ross, also noting the re-starting of buybacks in Q2.
    • "We think investors can purchase the shares at a 20-25% discount to BVPS and earn a 12%+ yield and experience 10-13% price appreciation."
    • Previously: American Capital Agency higher after lousy quarter (July 28)
    • Previously: Rough quarter for American Capital Agency (July 27)
    • Previously: American Capital Agency misses by $0.03 (July 27)
    | Jul. 29, 2015, 11:35 AM
  • Jul. 28, 2015, 9:52 AM
    • Investors take a least a small hiatus from selling the mortgage REITs after last night's clunker of an earnings report from American Capital Agency (AGNC +2%).
    • Book value fell by 6% during Q2, with higher rates, widening MBS spreads, and faster prepayments making for an ugly combination.
    • The company, however, entered Q3 with its lowest leverage since the financial crisis, giving it the firepower to buy assets on the cheap. At the close yesterday, the stock was selling for a 22% discount to June 30 book value. At some point, the bad news is priced in?
    • The earnings call is set for 11 ET.
    • Annaly Capital (NLY +1.6%), CYS Investments (CYS +0.8%), Western Asset (WMC +1.2%), New York Mortgage (NYMT +0.5%).
    • ETFs: MORL, REM, MORT, LMBS
    | Jul. 28, 2015, 9:52 AM | 13 Comments
  • Jul. 27, 2015, 4:16 PM
    • Q2 net spread and dollar roll income per share of $0.60 down from $0.70 in Q1. Q2 dividends were $0.62 per share (current quarterly run rate is $0.60).
    • Book value per share of $24 slips from $25.53 three months earlier. Today's close of $18.73 is a 22% discount to June 30 book. Economic loss of 3.6% for the quarter, with a $0.62 dividend being more than offset by the $1.53 decline in book value.
    • 4M shares, or 1% of the float, repurchased during Q2 at average price of $19.86 each.
    • "At risk" leverage slips 20 basis points to 6.1x.
    • Net interest spread of 1.74% vs. 1.64% in Q1. Including "catch up" premium amortization benefit/cost, net interest spread of 1.5% vs. 1.53% in Q1. 11.6% CPR in Q2 vs. 8.4% a quarter earlier.
    • Management notes book value was hit not only by higher rates but significant widening in agency MBS spreads. The company is hunkered down, entering Q3 with its lowest leverage since 2008 - thus giving it the opportunity to be buyers on weakness.
    • Earnings call tomorrow at 11 ET
    • Previously: American Capital Agency misses by $0.03 (July 27)
    • AGNC -0.5% premarket
    | Jul. 27, 2015, 4:16 PM | 25 Comments
  • Jul. 27, 2015, 4:03 PM
    • American Capital Agency (NASDAQ:AGNC): Q2 EPS of $0.60 misses by $0.03.
    | Jul. 27, 2015, 4:03 PM | 6 Comments
  • Jul. 26, 2015, 5:35 PM
    | Jul. 26, 2015, 5:35 PM | 1 Comment
  • Jul. 23, 2015, 1:17 PM
    • CYS Investments last night reported a big drop in book value as the effect of sharply higher rates more than offset the company's hedges. Core income failed to cover the dividend as prepayments also rose.
    • The stock today is down 2.6% and trading at more than a 20% discount to book value.
    • Earlier this week, Hatteras also reported a decline in income and fall in book value.
    • Sector giants Annaly Capital (NLY -0.5%) and American Capital Agency (AGNC -0.7%) are performing the best today. Armour Residential (ARR -1.8%), Chimera Investment (CIM -0.8%), Invesco Mortgage (IVR -1.1%), New York Mortgage (NYMT -1.2%), Western Asset Mortgage (WMC -1%), Anworth Mortgage (ANH -1.2%), Arlington Asset (AI -2.3%), Ellington Residential (EARN -2.1%), Dynex Capital (DX -0.8%)
    • ETFs: MORL, REM, MORT, LMBS
    | Jul. 23, 2015, 1:17 PM | 32 Comments
Company Description
American Capital Agency Corp. is a real estate investment trust. It primarily invests in agency mortgage-backed securities and collateralized mortgage obligations. The company's investments consist of securities, for which the principal and interest payments are guaranteed by United States... More
Sector: Financial
Industry: REIT - Residential
Country: United States