AGNC Investment Corp.NASDAQ
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  • Tue, Jul. 19, 10:21 AM
    • Details aren't yet available, but it's not hard to imaging similar reasoning as today KBW follows JPMorgan (yesterday) in downgrading American Capital Agency (AGNC +0.8%).
    • Rates have fallen at the long end and are steady (or possibly soon to be rising) at the short end. It adds up to boosted prepayment risk and slimmer margins.
    • The stock's roughly 20% rally since bottoming in early January leaves the valuation a lot fuller today than it was then.
    | Tue, Jul. 19, 10:21 AM | 9 Comments
  • Mon, Jul. 18, 7:36 AM
    • Citing increased prepayment risk and margin compression thanks to the sharp decline in rates and flatter yield curve, Richard Shane downgrades American Capital Agency (NASDAQ:AGNC) to Neutral. The $20 price target remains.
    • Shares are down 0.5% premarket to $19.15.
    | Mon, Jul. 18, 7:36 AM | 8 Comments
  • Thu, Jul. 14, 4:04 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.20/share monthly dividend, in line with previous.
    • Forward yield 12.51%
    • Payable Aug. 8; for shareholders of record July 29; ex-div July 27.
    | Thu, Jul. 14, 4:04 PM | 3 Comments
  • Wed, Jun. 29, 9:47 AM
    • Alongside its downgrade of Western Asset Mortgage, BAML upgrades American Capital Agency (AGNC unch) to Neutral from Underperform.
    • BAML's action comes after more than a 20% run higher for AGNC from lows hit in mid-January. At the current price of $19.50, the stock is trading at an 11.7% discount to March 31 book value.
    | Wed, Jun. 29, 9:47 AM | 5 Comments
  • Fri, Jun. 24, 10:30 AM
    • A sharp drop in long-term rates and vanquished expectations for even one rate hike this year has income players bidding up the prices of utility stocks (XLU +0.7%) and certain REITs even as the major average fall more than 2% post-Brexit.
    • A check of Fed Funds futures finds traders not fully pricing in a 25 basis point rate hike until 2018!
    • The mortgage REIT sector (REM +0.5%) welcomes the news, with players like Annaly (NLY +1.7%), American Capital Agency (AGNC +1.1%), Two Harbors (TWO +1.7%), and Chimera (CIM +1.3%) leading the way. Western Asset Mortgage (WMC -0.8%) is a laggard after slashing its dividend by more than 30% last night.
    • Equity REITs are decidedly mixed. Retail names like Realty Income (O +2.4%), National Retail (NNN +2%), and Vereit (VER +0.9%) are higher, as are healthcare players like HCP (HCP +1.2%) and Medical Properties Trust (MPW +0.1). Apartment REITs are mostly lower, as are mall operators like Simon Property (SPG -0.8%) and General Growth (GGP -0.7%).
    • The dollar is surging post-Brexit, however, and that's taking a chunk out of the hotel REITs: Hospitality Properties (HPT -1.5%), Sunstone Hotel (SHO -2.7%), LaSalle (LHO -3.8%), Pebblebrook (PEB -2.4%), RLJ Lodging (RLJ -2.5%).
    | Fri, Jun. 24, 10:30 AM | 43 Comments
  • Wed, Jun. 15, 3:20 PM
    • Fed Funds futures markets are pricing in just a 50% chance of a rate hike in 2016 after the FOMC stayed on hold in June and cut its expectations for future moves higher in interest rates.
    • The mREITs (REM +0.7%) are up just modestly, but all higher now than they were prior to the FOMC news.
    • Annaly Capital (NLY +0.6%), American Capital Agency (AGNC +0.9%), Armour (ARR +1.4%), CYS Investments (CYS +1%), New York Mortgage (NYMT +1.4%), Capstead Mortgage (CMO +1.1%).
    | Wed, Jun. 15, 3:20 PM | 12 Comments
  • Mon, Jun. 13, 5:13 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.20/share monthly dividend, in line with previous.
    • Forward yield 12.79%
    • Payable July 8; for shareholders of record June 30; ex-div June 28.
    | Mon, Jun. 13, 5:13 PM | 2 Comments
  • Mon, Jun. 13, 4:09 PM
    • Alongside declaration of its $0.20 monthly dividend, American Capital Agency (NASDAQ:AGNC) announces estimated book value of $22.36 as of May 31. This compares to $22.44 a month earlier, and $22.09 at the end of Q1.
    • Today's close of $18.77 is a 16% discount to May 31 book.
    • Source: Press Release
    | Mon, Jun. 13, 4:09 PM | 4 Comments
  • Wed, Jun. 1, 2:46 PM
    • The company in Q1 paid a $108M management fee to American Capital and had $0 compensation and benefits cost. After the purchase of the management company and brining staff on board, American Capital Agency (NASDAQ:AGNC) will pay $0 in management fees, have comp and benefits expense of $43M, and reap a $15M management fee from American Capital Mortgage (NASDAQ:MTGE).
    • In all, it's a net annualized benefit of $80M, or $0.24 per share. It also brings AGNC's pro forma operating costs to just 88 basis points as a percentage of shareholder equity - that's 25% lower than the next mortgage REIT and 70% lower than the average for the entire mREIT sector. When taking leverage into effect, CEO Gary Kain points out it makes AGNC's cost structure compelling not just vs. its mREIT brethren, but against any other fixed income vehicle.
    • Transcript
    • Presentation slides
    • Previously: Ares Capital buying American Capital; American Capital Agency internalizing manager (May 23)
    | Wed, Jun. 1, 2:46 PM | 5 Comments
  • Mon, May 23, 3:37 PM
    • American Capital Agency (AGNC +1.4%) is upgraded to Buy from Hold at Wunderlich after the company agreed to buy its external manager from American Capital for $562M.
    • The $23 price target is 21% above the current level.
    • AGNC expects to save about $80M per year from the internalization of management.
    | Mon, May 23, 3:37 PM | 19 Comments
  • Mon, May 23, 8:58 AM
    • The company will pay American Capital $562M in cash to purchase American Capital Mortgage Management, LLC, the external manager of both AGNC and MTGE.
    • The deal is expected to close in Q3.
    • American Capital Management paid $27M in fees to ACMM in Q1, or $108M on an annualized basis. Internalization is expected to save about $80M per year.
    • Alongside the deal, five members of the AGNC board resigned, and Prue Larocca has been elected board chair.
    • The investment team, led by Gary Kain, remains intact.
    • Source: Press Release
    • Shares +3.1% premarket
    • Previously: Ares Capital buying American Capital; American Capital Agency internalizing manager (May 23)
    | Mon, May 23, 8:58 AM | 26 Comments
  • Mon, May 23, 7:52 AM
    • American Capital (NASDAQ:ACAS) owners will receive about $3.43B in cash and ARCC common stock consideration, or $14.95 per share.
    • In addition, American Capital is selling the manager of American Capital Agency (NASDAQ:AGNC) to American Capital Agency for $562M, or $2.45 per share. Ares Management (NYSE:ARES) will help finance the deal.
    • Together, American Capital shareholders are getting $17.40 in value for each share they own vs. Friday's close of $15.62.
    • A conference call is set for 8:30 ET.
    • Source: Press Release
    | Mon, May 23, 7:52 AM | 64 Comments
  • Wed, May 18, 2:25 PM
    • Having repriced over the past few months for a rates lower-for-longer environment, mREITs (REM -1.6%) may have to reprice again as the FOMC minutes more or less signal the central bank's intention to hike rates in June.
    • Yield-starved names like banks, insurers, and online brokers are soaring, but income producers like Annaly Capital (NLY -2.7%), American Capital Mortgage (AGNC -2.5%), Armour (ARR -3.1%), CYS Investments (CYS -3.4%), Capstead (CMO -2%), Western Asset (WMC -2.3%), Anworth (ANH -2.3%), and Ellington Residential (EARN -2.4%) are going the opposite way.
    | Wed, May 18, 2:25 PM | 107 Comments
  • Thu, May 12, 6:03 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.20/share monthly dividend, in line with previous.
    • Forward yield 12.58%
    • Payable June 9; for shareholders of record May 31; ex-div May 26.
    | Thu, May 12, 6:03 PM | 7 Comments
  • Mon, May 9, 1:51 PM
    • The average yield in the mortgage REIT sector is 14%, says analyst Bose George - probably warranted given falling book values, though things stabilized in Q1 for at least a few. His favorites are Two Harbors (NYSE:TWO) at 78% of book with a 12% dividend yield, and there's also American Capital Agency (NASDAQ:AGNC), Annaly Capital (NYSE:NLY), Chimera Investment (NYSE:CIM), and MFA Financial (NYSE:MFA).
    • BDCs, says Ryan Lynch, have been stung by credit fears and trade at an average 87% of book value. His favorites - Ares Capital (NASDAQ:ARCC) and Hercules Capital (NYSE:HTGC) - both yield near 10%.
    • Property & casualty insurers have high "cash-on-cash returns" thanks to share buybacks, says Meyer Shields, with Hartford (NYSE:HIG) and AIG standing out on that front. His favorite stocks, however, are lower yielders like Allstate (NYSE:ALL), National General (NASDAQ:NGHC), and XL Group (NYSE:XL).
    • KBW also offers a basket of high yielders through the PowerShares KBW High Dividend Yield Financial ETF (NYSEARCA:KBWD). The fund currently yields 9%, and is higher by 20% in the past three months.
    • Source: Barron's
    | Mon, May 9, 1:51 PM | 17 Comments
  • Tue, Apr. 26, 2:38 PM
    • The company last night reported net spread and dollar roll income of just $0.52 per share - that's down from $0.54 in Q4 and stands against the dividend rate of $0.60. It has some speculation about a forthcoming cut in the payout.
    • Management isn't in the habit of giving dividend guidance, but CEO Gary Kain in the past has discussed the shortcomings of net spread income, and doesn't view it as expressing the "true earnings power of the portfolio."
    • He notes that buybacks done at discounts to book value boost earnings power as do narrowing mortgage spreads (which the company expects). Also funding costs are expected to improve.
    • There's also leverage, and while it rose to 7.3x from 6.8x during the quarter, the company sees the bias as towards a level closer to 8x, though don't expect to get there too quickly.
    • AGNC -2.3%
    • Now read: American Capital Agency's (AGNC) CEO Gary Kain on Q1 2016 Results - Earnings Call Transcript (April 26)
    | Tue, Apr. 26, 2:38 PM | 12 Comments