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American Capital Agency Corp. (AGNC)

  • Jul. 18, 2013, 11:43 AM
    Other mREITs slipping along with CYS Investments today include American Capital (AGNC -2.3%), Annaly (NLY -1.6%), and Armour (ARR -0.6%). This despite the fact that not all hedge books are created equal and the managements of these three may not have been buying alongside CYS CEO Kevin Grant at just the wrong time - early June.
  • Jul. 12, 2013, 12:54 PM
    Interest rates are quietly creeping higher, with the 10-year Treasury back to 2.60% after threatening to hit 2.50% a few hours back. Accordingly, the mREIT sector (REM -1.2%) begins to relinquish some its big gains from yesterday. Leading on the downside are American Capital (AGNC -3.5%), Annaly (NLY -2.3%), Armour (ARR -2.3%), Invesco (IVR -1.9%), and Western Mortgage (WMC -2%). 
  • Jul. 11, 2013, 7:55 AM
    Another analyst throws in the towel on American Capital Agency (AGNC), with Evercore downgrading to Hold from Buy after a 2-month 40% decline (previous). In fairness to Evercore, the team upped MFA Financial along with this move, suggesting it prefers rotating out of the pure-agency REITs and into the hybrid players. AGNC +4.3% premarket.
  • Jul. 11, 2013, 7:47 AM
    Bernanke's dovish tilt and tumbling interest rates have the mortgage REITs (REM) partying in premarket action: AGNC +4%, NLY +2.2%, CIM +1.8%, TWO +2.4%, NYMT +3.1%, WMC +1.5%.
  • Jul. 9, 2013, 11:00 AM
    Agency mREITs continue to merit caution even after big declines, says Citi. Even if the scare of higher long-term rates may be priced in, around the corner could be worries of short-term rate hikes (and a flatter yield curve). Citi expects Q2 reported book values to be off 10-15% and asset sales combined with increased hedging to negatively impact future earnings. Price targets are cut at AGNC and NLY. Among other agency players: ARR, HTS, CYS, CMO, AMTG.
  • Jul. 9, 2013, 9:08 AM
    Beaten-down American Capital Mortgage (MTGE) sees a big buy, with Pine River Capital (they run TWO Harbors) reporting the addition of nearly 4.4M shares to its previous 1M share stake. The stock's off nearly 40% since an ugly Q1 earnings report in early May (along with sister-company AGNC) was compounded by the fast rise in interest rates since.
  • Jul. 8, 2013, 3:35 PM
    More on the Wunderlich downgrade of the mREITs (REM +1.2%), (MORT +1.3%): The "lack of liquidity reached crisis levels" on Friday, says the team. "Price discovery has become a very uncertain process and we believe there is a risk that some entity - be it a mREIT or a hedge fund - could fail to meet margin requirements ... while we hope to be wrong in this case, equity investors need to be mindful of the potential downside scenarios."
  • Jul. 8, 2013, 10:00 AM
    Investors tiptoe back into mREITs (REM +0.7%) following Friday's drubbing which was the exclamation point (at least the bulls hope so) on 3 months of major losses for the sector. In what could turn out to be a sell side classic, Wunderlich cuts a swath of pummeled names from Buy to Hold: American Capital (AGNC), (MTGE +0.7%), CYS (CYS +1.2%), Invesco (IVR +0.9%), Western Asset (WMC -0.4%), AG (MITT -2.5%). Others of interest this morning: Annaly (NLY +1.6%), Armour (ARR +1.2%), Hatteras (HTS +0.6%), MFA (MFA +0.4%), Anworth (ANH +1.8%), Dynex (DX +1%).
  • Jul. 5, 2013, 9:38 AM
    Panicky selling grips the mortgage REITs (REM -3.5%) as Treasury yields soar following the payroll report. American Capital (AGNC -6.9%), (MTGE -5%), Annaly (NLY -6.9%) Chimera (CIM -4.9%), Armour (ARR -3.9%), Invesco (IVR -2.7%), CYS Investments (CYS -3%). CYS' Kevin Grant was public a month ago about being a happy buyer as yields rose - a bit early on that call.
  • Jun. 24, 2013, 9:47 AM
    Continued panicky action grips the mortgage REIT sector (REM -3.5%) at the open as the global stock selloff as yet offers no relief on interest rates. Adding to the fear is an opening print of -25% on the Market Vectors Mortgage REIT ETF (MORT -3.7%). American Capital (AGNC -4.5%), (MTGE -2.6%), Annaly (NLY -2.8%), Armour (ARR -4.8%), Invesco (IVR -4.4%), Hatteras (HTS -3.9%), CYS Investments (CYS -3.6%). Set for release from embargo tomorrow is SA Pro's REIT Analyst arguing the selloff in AGNC has left the price about 20% below book value.
  • Jun. 20, 2013, 3:32 PM
    Mortgage-backed securities continue their tumble, the yield on Fannie Mae issuance up another 8 bps to a 20-month high of 3.29%. The "violent" reaction to the "moderate" shift in Fed message proves the market was "all-in" says TCW's Bryan Whalen. The slide in MBS prices eventually might make for great opportunities for mREITs (REM -3.9%), but for now book values may continue to deteriorate. American Capital (AGNC -4.8%), MTGE>>, Armour (ARR -3.9%), Invesco (IVR -4.4%), New York Mortgage (NYMT -5.1%), Apollo (AMTG -4.8%), Javelin (JMI -4.7%).
  • Jun. 19, 2013, 3:13 PM
    Markets start to fall in earnest as the reality of a tapering and then ending in QE sinks in - even as the chairman is at pains to prove it's anything but a tightening move. The DJIA (DIA -0.8%) is off 145 points as the 10-year Treasury yield soars 15 bps to 2.33%, its highest level in 2 years. Reversing sizable early gains is the mREIT sector (REM -2.3%) - a leveraged holder of the paper the Fed will no longer be buying - with American Capital (AGNC -2%), (MTGE -1.5%), Annaly (NLY -2.2%), Invesco (IVR -2.5%), Two Harbors (TWO -3.5%), and Anworth (ANH -2.2%) leading the way. The greenback (UUP +0.9%) continues to fly higher.
  • Jun. 19, 2013, 8:59 AM
    American Capital Agency (AGNC) declares $1.05/share quarterly dividend. Forward yield 16.57%. For shareholders of record June 28. Payable July 26. Ex-div date June 26. Shares +2.5% premarket. (PR)
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  • Jun. 19, 2013, 6:56 AM
    American Capital Agency (AGNC) gains 2.5% premarket after cutting its quarterly dividend 16% to $1.05/share, a 16.6% annualized yield based on last night's close, suggesting the cuts aren't over with. SA Pro's Dane Bowler a month ago suggested an annual payout of about $3.50 as a "sustainable" level for the dividend. (PR)
  • Jun. 13, 2013, 3:39 PM
    Mortgage REIT (REM +4.1%) rallies are accelerating as the day draws to a close. Sector giants Annaly (NLY +4.7%), American Capital Agency (AGNC +4.2%) are closing in on 5% gains, while CYS Investment (CYS +6.2%) and Western Mortgage (WMC +7.1%) are threatening 7%. Did everybody realize all at once that higher long end rates combined with ZIRP should allow mREIT managers to invest at very profitable spreads?
  • Jun. 12, 2013, 4:08 PM
    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.
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Company Description
American Capital Agency Corp is a real estate investment trust that invests exclusively in residential mortgage pass-through securities and collateralized mortgage obligations on a leveraged basis.
Sector: Financial
Country: United States