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American Capital Agency Corp. (AGNC)

- NASDAQ
  • Fri, Jun. 26, 3:31 PM
    • Equity REITs are mostly being spared any punishment today, but mortgage REITs are hitting multi-year lows across the board as the 10-year U.S. Treasury yield climbs seven basis points to 2.48%.
    • Annaly Capital (NLY -4.7%) hasn't seen a price this low since Alan Greenspan was nearing the end of his rate hike cycle in 2000. American Capital Agency (AGNC -3.7%) is at its lowest price since the bottom of the financial crisis.
    • Armour Residential (ARR -2.9%), Two Harbors (TWO -4.5%), Chimera Investment (CIM -4.8%), CYS Investments (CYS -3.7%), American Capital Mortgage (MTGE -5.4%), Capstead Mortgage (CMO -4.5%), Anworth Mortgage (ANH -4.3%), AG Mortgage (MITT -3.3%), Ellington Residential (EARN -5.3%), Orchid Island (ORC -3.9%).
    • ETFs: MORL, REM, MORT, LMBS
    | Fri, Jun. 26, 3:31 PM | 128 Comments
  • Thu, Jun. 25, 4:17 PM
    • The XLU underperformed again today, losing 0.7% and bringing its year-to-date decline to more than 12%.
    • Looking at equity REITs, the IYR dipped another 0.95% and VNQ fell 1%. Both are down about 6% in 2015, and roughly 15% since late January. Some individual names: Spirit Realty (SRC -2.8%), Senior Housing (SNH -1.2%), HCP (HCP -1.4%), American Realty Capital (ARCP -3%), Gramercy Property (GPT -2.8%), Duke Realty (DRE -2%).
    • In mortgage REITs, REM lost 0.9% today and is off 7% YTD. Some individual names: American Capital Agency (AGNC -1.2%), Armour (ARR -1%), CYS Investments (CYS -0.9%), Annaly Capital (NLY -0.8%), Invesco Mortgage (IVR -1.2%), Apollo Residential (AMTG -1.1%), PennyMac Mortgage (PMT -2.3%), Western Asset Mortgage (WMC -2.7%).
    • The 10-year Treasury yield gained three basis points to 2.40%.
    • Previously: Sell-side abandoning REITs as rates rise (June 25)
    • 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
    | Thu, Jun. 25, 4:17 PM | 74 Comments
  • Wed, Jun. 17, 8:24 AM
    • In the middle of a tough run for the mREIT sector, BAML picks four to downgrade from Neutral to Underperform.
    • The operating backdrop for mREITs remains challenging, says BAML, and higher rates, widening spreads, and increased volatility will continue to pressure shares. A flatter yield curve, says BAML, means potential dividend cuts.
    • American Capital Agency (NASDAQ:AGNC-1.3%, CYS Investments (NYSE:CYS-1.5%, Hatteras Financial (NYSE:HTS-1.1%, Dynex Capital (NYSE:DX-1% premarket
    • ETFs: MORL, REM, MORT, LMBS
    | Wed, Jun. 17, 8:24 AM | 79 Comments
  • Thu, Jun. 11, 3:05 PM
    • Interest rates retreating from near-one-year highs are helping, but the sector is looking very cheap as investors anticipate falling book values and/or slashed dividends.
    • American Capital Agency (AGNC +1.9%) - prior to today's action - was trading at a 21.9% discount to May 31 book value and yielding 12.31%.
    • Previously: American Capital Agency discount to book value widens (June 10)
    • CYS Investments (CYS +1.4%) cut its dividend by 6.7% earlier this week, and is trading at a 17.9% discount to March 31 book.
    • Annaly Capital (NLY +1.3%) hasn't yet declared its Q2 dividend, but is trading at a 22.5% discount to March 31 book.
    • ETFs: MORL, REM, MORT, LMBS
    | Thu, Jun. 11, 3:05 PM | 44 Comments
  • Wed, Jun. 10, 4:14 PM
    • Alongside the declaration of its $0.20 per share dividend, American Capital Agency (NASDAQ:AGNC) estimates May 31 book value per share at $24.94 versus $25.12 at the start of the month (and after payment of a $0.20 dividend).
    • Today's close of $19.49 is a 21.9% discount to May 31 book.
    • Source: Press Release
    | Wed, Jun. 10, 4:14 PM | 22 Comments
  • Wed, Jun. 10, 4:04 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.20/share monthly dividend, in line with previous.
    • Forward yield 12.31%
    • Payable July 8; for shareholders of record June 30; ex-div June 26.
    | Wed, Jun. 10, 4:04 PM | 1 Comment
  • Fri, Jun. 5, 3:57 PM
    | Fri, Jun. 5, 3:57 PM | 89 Comments
  • Wed, Jun. 3, 10:25 AM
    • There's a bit of a selling panic going on in fixed income, with the 10-year Treasury yield up another nine basis points on this session to 2.35%, and now up 25 bps this week. The carnage across the pond is worse.
    • The IYR is lower by 0.9%.
    • Individual equity REITs: Realty Income (O -1.2%), Ventas (VTR -2.5%), Omega Healthcare (OHI -0.9%), HCP (HCP -1.5%), Equity Residential (EQR -2.1%), AvalonBay (AVB -1.8%), Simon Property (SPG -1.3%), General Growth (GGP -1.5%), Kimco (KIM -1.2%),  Public Storage (PSA -1%), Boston Properties (BXP -1.1%), Hospitality Properties (HPT -1.2%), Liberty Property (LPT -1%), Campus Crest (CCG -2.2%).
    • Mortgage REITs: Annaly (NLY -1.2%), American Capital Agency (AGNC -0.9%), Invesco (IVR -1.1%), Hatteras (HTS -1%), Ellington Residential (EARN -1%).
    • 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
    | Wed, Jun. 3, 10:25 AM | 74 Comments
  • Tue, May 12, 4:43 PM
    • Estimated book value per share of $25.12 as of April 30 is off from $25.53 one month earlier. The company, however, declared both the April and May dividend in April (a total of $0.42). Today's close of $20.60 is an 18% discount to book.
    • Source: Press Release
    • AGNC -0.5% after hours
    | Tue, May 12, 4:43 PM | 20 Comments
  • Thu, May 7, 3:01 PM
    • "Share buybacks come directly out of our capital and I equate it to Apple closing down the very factories that produce the cash flow they used to buy back their stock," says Annaly (NLY +0.8%) CEO Wellington Denahan on the earnings call (transcript).
    • Denahan notes Annaly since inception has returned 510% vs. the S&P 500's 200% - this while S&P companies bought back $5T in stock and Annaly repurchased zilch (A contrary take: Not every company has the opportunity to buy back stock at a 22.5% discount to book value).
    • UBS's Matthew Howlett has Sell recommendations on both Annaly and American Capital Agency (AGNC +0.1%) in part because of their reluctance to repurchase shares (AGNC has been an enthusiastic repurchaser in the past). He notes a possible misalignment of management and shareholder interests as the firms' managers get higher fees from higher assets.
    • Previously: Annaly Capital edges higher after earnings miss (May 7)
    • Previously: Annaly income stung by slimming margins, higher prepays (May 6)
    | Thu, May 7, 3:01 PM | 19 Comments
  • Tue, May 5, 10:31 AM
    • A big move higher in interest rates continues, with the 10-year Treasury yield up another six basis points to 2.20% - roughly the level at which it started the year (it fell as low as 1.65% in early February).
    • The move here is small-time compared to what's going on across the pond, as the absurd levels of two weeks ago become somewhat less absurd. Ten-year Bund yields are up to 0.51% from 0.05%. Italian 10-years are up 30 bps today to 1.78%, with a similar move in Spain.
    • The IYR is down 1.1%.
    • Individual names: Realty Income (O -1.3%), Senior Housing Properties (SNH -1.5%), Medical Properties Trust (MPW -2.4%), Gramercy Property Trust (GPT -1.8%), Equity Residential (EQR -1.4%), AvalonBay (AVB -1.5%), Government Properties (GOV -2.3%), Pebblebrook Hotel (PEB -2%), Eastgroup Properties (EGP -1.6%), American Campus (ACC -1.4%).
    • Mortgage REITS (REM -0.6%) are outperforming the equity names: Annaly (NLY -0.7%), American Capital Agency (AGNC -0.6%), Two Harbors (TWO -0.7%), CYS Investments (CYS -0.3%), Invesco (IVR -0.2%).
    | Tue, May 5, 10:31 AM | 21 Comments
  • Thu, Apr. 30, 3:15 PM
    • A big rise in interest rates early in the session made for a good excuse to sell REITs, but - with the averages sharply lower - rates have reversed course. Still, the sector can't catch a bid, with many of the bigger names down way more than the broader market.
    • Equity REITs: Realty Income (O -2.3%), Health Care REIT (HCN -3.2%), Ventas (VTR -3.2%), HCP (HCP -3.1%), Equity Residential (EQR -2.6%), Silver Bay Realty (SBY -2.5%), General Growth Properties (GGP -2.4%), Retail Opportunity (ROIC -3.9%), Boston Properties (BXP -2.4%), Hospitality Properties (HPT -2.9%)
    • Mortgage REITs: Armour Residential (ARR -5.6%) - which reported another weak quarter overnight, Two Harbors (TWO -1.1%), Western Asset (WMC -1.3%), Arlington Asset (AI -2.8%), PennyMac (PMT -1.5%). When things get tough, money does have a tendency to flow into the sector giants though: Annaly Capital (NLY -0.4%) and American Capital Agency (AGNC +0.3%) are notable outperformers on the session.
    • ETFs: IYR, VNQ, DRN, URE, REZ, SCHH, ICF, SRS, RWR, KBWY, DRV, REK, FRI, FTY, PSR, FREL, WREI
    | Thu, Apr. 30, 3:15 PM | 43 Comments
  • Wed, Apr. 29, 8:08 AM
    | Wed, Apr. 29, 8:08 AM | 12 Comments
  • Tue, Apr. 28, 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)
    | Tue, Apr. 28, 11:27 AM | 7 Comments
  • Mon, Apr. 27, 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.
    | Mon, Apr. 27, 4:19 PM | 11 Comments
  • Mon, Apr. 27, 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
    | Mon, Apr. 27, 4:14 PM | 32 Comments
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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