American Capital Agency Corp. (AGNC) - NASDAQ
  • Apr. 29, 2015, 8:08 AM
    | Apr. 29, 2015, 8:08 AM | 12 Comments
  • Apr. 28, 2015, 11:27 AM
    • In his 25 years in the business, American Capital Agency (AGNC -2.4%) CIO Gary Kain - opening up the earnings call - can't remember a quarter with such "two-way" volatility as was seen in Q1.
    • Presentation slides
    • Expecting the volatility to continue, management has turned conservative - reducing interest rate exposure and cutting leverage. This conservatism has a cost, says Kain, thus the monthly dividend cut to $0.20 per share from $0.22.
    • The good news: Despite the volatility, AGNC book value has remained fairly stable over the last six months, and the company has earned a positive economic return - defined as the change in book value plus the dividend - of 5.13% (10.26% annualized).
    • Opening up the Q&A, Wells Fargo's Joel Houck questions the conservative stance, noting this sort of volatility in the past has been when Kain and team have earned their stripes by delivering alpha. Kain: It's a good question, but we're hunkering down for now and will pick our spots.
    • Previously: American Capital Agency declares $0.20 dividend (April 27)
    • Previously: American Capital Agency income and book value slip in Q1 (April 27)
    • Previously: American Capital Agency misses by $0.04 (April 27)
    | Apr. 28, 2015, 11:27 AM | 7 Comments
  • Apr. 27, 2015, 4:19 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.20/share monthly dividend, -9.1% decrease from prior dividend of $0.22.
    • Forward yield 11.17%
    • Payable June 5; for shareholders of record May 29; ex-div May 27.
    | Apr. 27, 2015, 4:19 PM | 11 Comments
  • Apr. 27, 2015, 4:14 PM
    • Q1 net spread and dollar roll income of $0.70 per share down from $0.92 in Q3. Quarterly dividend run rate of $0.66.
    • Book value per share of $25.53 slips from $25.79 estimated one month ago and $25.74 at the start of the year. Today's close of $21.47 is a 15.9% discount to March 31 book.
    • Economic return for the quarter - defined as the dividend plus/minus the change in book value of 1.7%, or 7.1% annualized.
    • 8.4% CPR for the quarter vs. 9% in Q4. Net interest spread of 1.64% slips 21 basis points.
    • "At-risk" leverage of 6.4x down from 6.9x in Q4. The CFO notes the company is operating at its lowest leverage level in more than six years - a conscious decision made by management in light of what it expects to be significant volatility.
    • Earnings call tomorrow at 11 ET
    • Previously: American Capital Agency misses by $0.04 (April 27)
    • AGNC flat after hours
    | Apr. 27, 2015, 4:14 PM | 32 Comments
  • Apr. 27, 2015, 4:06 PM
    • American Capital Agency (NASDAQ:AGNC): Q1 EPS of $0.70 misses by $0.04.
    | Apr. 27, 2015, 4:06 PM
  • Apr. 26, 2015, 5:35 PM
    | Apr. 26, 2015, 5:35 PM | 18 Comments
  • Apr. 13, 2015, 4:55 PM
    • REITs typically face headwinds as monetary policy tightens thanks to the liability sensitivity of their balance sheets, says Wunderlich. Certain strategies can mitigate this, however, and some mREITs are doing a better job than others, meaning they could be buys even if rates move higher this year.
    • First is American Capital Agency (NASDAQ:AGNC), yielding 12.3% and trading at a sizable discount to what was stable book value as of the end of February.
    • Next is AG Mortgage Investment (NYSE:MITT) which has diversified its portfolio to include 45% credit-sensitive assets, i.e. not necessarily impacted by rates. MITT yields 12.7% and trades at a 6% discount to trailing book value.
    • Source: Barron's
    | Apr. 13, 2015, 4:55 PM | 7 Comments
  • Apr. 13, 2015, 4:04 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.22/share monthly dividend, in line with previous.
    • Forward yield 12.23%
    • Payable May 8; for shareholders of record April 30; ex-div April 28.
    | Apr. 13, 2015, 4:04 PM | 17 Comments
  • Mar. 18, 2015, 2:30 PM
    • Worries about a sharply flatter yield curve abate just a bit as the FOMC drops "patient" from its policy statement - putting rate hikes on the table at subsequent meetings - but Fed economic projections send a dovish signal, with outlooks for economic growth, inflation, and the pace of rate hikes all cut from previous estimates.
    • Outperforming the averages: Annaly Capital (NLY +1.1%), American Capital Agency (AGNC +1.5%), Two Harbors (TWO +1.5%), CYS Investments (CYS +2%), Invesco (IVR +1.7%), Hatteras (HTS +1.7%), Capstead (CMO +2.1%), MFA Financial (MFA +1.7%), Anworth (ANH +2.2%), Dynex (DX +1.5%), Five Oaks (OAKS +3.3%).
    • ETFs: REM, MORT, MORL
    • Previously: FOMC drops "patient," but sends dovish signal (March 18)
    | Mar. 18, 2015, 2:30 PM | 9 Comments
  • Mar. 12, 2015, 4:45 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.22/share monthly dividend, in line with previous.
    • Forward yield 12.56%
    • Payable April 10; for shareholders of record March 31; ex-div March 27.
    | Mar. 12, 2015, 4:45 PM | 19 Comments
  • Mar. 12, 2015, 4:23 PM
    • Estimated book value as of Feb. 28 is $25.79 per share, and includes the deduction of the $0.22 monthly dividend. Book value at January's end was $25.58. A $0.22 dividend has been declared for March as well.
    • Today's close of $21.02 puts the stock at an 18.5% discount to book.
    • AGNC +0.1% after hours
    | Mar. 12, 2015, 4:23 PM | 8 Comments
  • Mar. 10, 2015, 3:08 PM
    • With the averages having a tightening tantrum - the Dow down nearly 300 - money is cautiously flowing into some income plays, notably the REITs. The iShares U.S. Real Estate ETF (NYSEARCA:IYR) is flat on the session.
    • Among the larger caps: Simon Property (SPG +0.2%), General Growth (GGP +0.7%), Health Care REIT (HCN +0.9%), HCP (HCP +0.4%), Equity Residential (EQR +0.5%), AvalonBay (AVB +0.6%), Boston Properties (BXP +0.2%), American Capital Agency (AGNC +0.2%), Annaly Capital (NLY -0.8%)
    • ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI, FREL
    • Previously: Yields tumble alongside stocks (March 10)
    | Mar. 10, 2015, 3:08 PM | 7 Comments
  • Mar. 6, 2015, 10:21 AM
    • The 10-year Treasury yield has popped all the way to 2.24% (up 11 bps on the session) following the strong jobs report which saw 295K jobs added in February and the unemployment rate dropping to 5.5%.
    • Checking short-term interest rate futures, they're falling (meaning higher rates), but still not pricing in a rate hike until late summer.
    • Annaly Capital (NLY -1.3%), American Capital Agency (AGNC -0.6%), Two Harbors (TWO -1%), Armour (ARR -0.9%), Invesco (IVR -0.9%), CYS Investments (CYS -1.4%), Hatteras (HTS -1.1%), MFA Financial (MFA -1.1%), Western Asset (WMC -0.7%), Dynex (DX -1.2%), AG Mortgage (MITT -1.5%), Ellington Residential (EARN -1.1%).
    • ETFs: REM, MORT, MORL
    • Previously: Dollar and Treasury yields spike after strong jobs print (March 6)
    | Mar. 6, 2015, 10:21 AM | 44 Comments
  • Feb. 12, 2015, 4:26 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.22/share monthly dividend, in line with previous.
    • Forward yield 12.14%
    • Payable March 6; for shareholders of record Feb. 27; ex-div Feb. 25.
    | Feb. 12, 2015, 4:26 PM | 6 Comments
  • Feb. 3, 2015, 3:52 PM
    • Unable to put any sort of positive move together even as interest rates tumbled this year, mREITs (REM +0.9%) are uniformly higher this session as the 10-year yield jumps 11 basis points to 1.78%.
    • American Capital Agency (AGNC +1.3%) reported better-than-hoped Q4 results last night, but has altered its mix of portfolio holdings and hedges to brace for what it expects will be a wave of prepayments. If rates keep this up, those prepayments may not materialize.
    • Annaly (NLY +1.1%), Chimera (CIM +1.5%), CYS Investments (CYS +1.3%), American Capital Mortgage (MTGE +1.8%), Hatteras (HTS +1.1%), MFA Financial (MFA +1.3%), Western Asset (WMC +1.8%), Dynex (DX +1.1%), Ellington Financial (EFC +1.2%).
    | Feb. 3, 2015, 3:52 PM | 18 Comments
  • Feb. 3, 2015, 11:43 AM
    • With the big declines in interest rates in late 2014 and thus far this year, American Capital Agency (AGNC +1.4%) has taken steps to protect its portfolio from what it expects will be a big rise in prepayments.
    • Webcast and prepayment slides
    • Among them is taking exposure to 30-year mortgages way down, with total face value at year-end of $14.7B vs. $23.2B three months earlier. Generics should exhibit the fastest prepayment speeds and they're now $5.1B vs. $13.2B the previous quarter. That money has gone into 15-year mortgages, where prepayments should be lower.
    • The hedging portfolio has also been significantly altered, with a portion of longer-dated swaps terminated, and shorted-dated swaps added. The company has also altered its Treasury holdings, buying the long end and selling short-dated paper. AGNC's 10-year Treasury position went from short $2.7B to long $2.4B by year-end.
    • Previously: American Capital agency beats, posts rise in book value (Feb. 2)
    • Previously: American Capital Agency beats by $0.11 (Feb. 2)
    | Feb. 3, 2015, 11:43 AM | 4 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