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American Capital Agency Corp. (AGNC)

- NASDAQ
  • Wed, Jan. 14, 1:17 PM
    • Agency MBS are off to their worst start relative to Treasurys since 1997 as the big drop in interest rates has investors nervous about a surge in refinancing. Returns on paper backed by Fannie, Freddie, or Ginnie Mae are 60 basis points less than those on Treasurys of similar duration so far this month.
    • Also stoking the trend are changes to government programs aimed at making mortgage credit easier to obtain.
    • Earlier today, the MBA reported applications for home-loan refis jumped 66% last week.
    • Prices of agency MBS currently average 106.5 cents on the dollar, meaning owners would lose 6.5% if immediately repaid.
    • Annaly Capital (NLY -1.3%), American Capital Agency (AGNC -1.2%), Armour Residential (ARR -2%), Two Harbors (TWO -0.9%), Invesco Mortgage (IVR -1.9%), American Capital Mortgage (MTGE -1.3%), Dynex (DX -0.5%), Apollo Residential (AMTG -1.2%), Anworth (ANH -0.9%), Western Asset (WMC -1.6%).
    • ETFs: REM, MORT, MORL
    | 40 Comments
  • Mon, Jan. 12, 10:03 AM
    • The mortgage REIT space (REM -0.6%) is cut to Market Weight from Overweight at Wells Fargo, with Annaly Capital (NLY -0.4%), American Capital Agency (AGNC -0.2%), CYS Investments (CYS -0.7%), Capstead Mortgage (CMO -0.8%), American Capital Mortgage (MTGE -0.5%), AG Mortgage (MITT -1.3%), and MFA Financial (MFA -0.3%) - for now - individual names also being cut to Market Weight.
    • It's an interesting move, especially in light of the significant discounts to book value nearly every stock in the sector trades at. The mortgage REITs have been especially notable of late for not being able to make any headway alongside the big rally in bond prices. Lower rates might do something for book values, but the sharply flatter yield curve (which could flatten even more once the Fed begins hiking) doesn't bode well for earnings power.
    • Other ETFs: MORT, MORL
    | 45 Comments
  • Tue, Jan. 6, 2:17 PM
    • The 10-year yield has plunged all the way down to 1.94% and one would figure on some nice increases in book value for the mortgage REITs (REM -0.1%), but on the flip side are narrowing interest rate spreads (especially as the Fed still seems to be intent on hiking short rates), and what hedging losses the companies are taking.
    • Other ETFs: MORT, MORL
    • Individual names: Annaly Capital (NLY +0.4%), American Capital Agency (AGNC), Armour Residential (ARR -1%), CYS Investments (CYS -0.2%), Invesco Mortgage (IVZ -2.7%), New York Mortgage Trust (NYMT -0.5%), Hatteras Financial (HTS -0.3%), Western Asset Mortgage (WMC -2.7%), Ellington Residential (EARN -0.4%), Javelin Mortgage (JMI -3%).
    | 20 Comments
  • Dec. 30, 2014, 12:37 PM
    • Nearly all the mREITs sell at discounts to their most recently disclosed book value, with sector giants Annaly Mortgage (NYSE:NLY) and American Capital Agency (NASDAQ:AGNC) trading at double-digit discounts.
    • Often a sizable haircut to book may make sense, as in the case of Armour Residential (NYSE:ARR) and Javelin Mortgage (NYSE:JMI), both of which just cut their dividend (they have the same external manager).
    • Of the 24 companies examined, New York Mortgage Trust (NASDAQ:NYMT) and Capstead Mortgage (NYSE:CMO) stand alone in trading at premiums to book value.
    • The full list
    | 10 Comments
  • Dec. 15, 2014, 4:07 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.22/share monthly dividend, in line with previous.
    • Forward yield 12.07%
    • Payable Jan. 9; for shareholders of record Dec. 31; ex-div Dec. 29.
    | 5 Comments
  • Dec. 9, 2014, 12:57 PM
    • Unable to catch a bid for a few sessions, mortgage REITs (REM +1%) have turned higher in afternoon action, led by Annaly (NLY +0.7%) and American Capital Agency (AGNC +1.5%).
    • Helping are jitters in the stock market (though U.S. averages are well off the lows), and a 10-year Treasury yield that's retreated all the way to 2.21% after hitting the mid-2.30s on the back of Friday's strong jobs number.
    • Armour (ARR +1.1%), Two Harbors (TWO +0.9%), CYS Investments (CYS +1.4%), Invesco (IVR +1.8%), American Capital Mortgage (MTGE +1%), Hatteras Financial (HTS +2%), Capstead (CMO +2%).
    • Other ETFs: MORT, MORL
    • Also showing some green are the recently beaten-up BDCs, including Prospect Capital (PSEC +0.2%), Fifth Street Finance (FSC +0.2%), Ares Capital (ARCC +0.5%), FS Investment (FSIC), Triangle Capital (TCAP +1.7%).
    • ETFs: BDCL, BDCS, BIZD
    • Previously: Money flows back into fixed income (Dec. 9, 2014)
    | 16 Comments
  • Dec. 5, 2014, 10:12 AM
    | 33 Comments
  • Nov. 19, 2014, 3:42 PM
    • A check of the mortgage REITs following FOMC minutes which shows the discussion moving a bit more seriously towards rate hikes finds the sector (REM -0.5%) modestly lower.
    • Individual names: Annaly (NLY -0.3%), American Capital Agency (AGNC), CYS Investments (CYS -0.3%), Invesco Mortgage (IVR -0.9%), New York Mortgage Trust (NYMT -0.4%), Hatteras Financial (HTS -0.8%), MFA Financial (MFA -1%), Capsteam Mortgage (CMO -0.6%), Ellington Residential (EARN -0.4%).
    | 8 Comments
  • Nov. 17, 2014, 4:03 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.22/share monthly dividend, in line with previous.
    • Forward yield 11.44%
    • Payable Dec. 5; for shareholders of record Nov. 28; ex-div Nov. 26.
    | 6 Comments
  • Oct. 29, 2014, 1:43 PM
    • Fed purchases of mortgage-backed securities are ending today, but reinvestments are likely to keep a firm bid in the market, says Deutsche's MBS team. The "real risk" to the MBS market won't come until the Fed ends reinvestments - early 2016 at the soonest, and maybe not until 2017.
    • QE's end, says the team, leaves the Fed with $1.7T in MBS holdings and private investors with just $3.5T. The Fed's massive holdings - 1/3 of the universal amount, but 1/2 of dollar duration - keep a source of volatility out of the market.
    • The end of the Fed as a net buyer will be about the first time since the early 1990s when MBS haven't been getting a bid from either the GSEs, Treasury, or Fed.
    • ETFs" REM, MORT, MORL
    • Names of interest: Annaly (NLY -1.6%), American Capital Agency (AGNC -2.5%), Armour (ARR -1.2%), Hatteras (HTS -1.6%), CYS Investments (CYS -1.7%)
    | 7 Comments
  • Oct. 28, 2014, 11:31 AM
    | Comment!
  • Oct. 27, 2014, 4:18 PM
    • Q3 net spread and dollar roll income of $0.85 vs. $0.87 in Q2. Quarterly dividend was $0.65..
    • Net book value per share of $25.54 down 2.7% from the end of Q2. Today's close of $23.20 is a 9.2% discount to book. Decrease in book value combined with dividend makes for an annualized 1.1% economic loss for the Q.
    • CPR of 10% up 100 basis points from Q2.
    • "At risk" leverage of 6.7x vs. 7.1x in Q2.
    • Net interest rate spread of 1.9% up six basis points from Q2.
    • No shares repurchased during quarter. Buyback program ($992M remaining) is extended through year-end 2015.
    • Conference call tomorrow at 11 ET
    • Previously: American Capital Agency beats by $0.10
    • AGNC -0.4% AH
    | Comment!
  • Oct. 27, 2014, 4:03 PM
    | 2 Comments
  • Oct. 26, 2014, 5:35 PM
  • Oct. 20, 2014, 10:44 AM
    • The mortgage REIT sector receives its first notable downgrade in awhile, with JMP's Steve Delaney downgrading American Capital Agency (AGNC +0.2%) to Market Perform.
    • The stock's ahead 16% YTD along with a dividend yield of nearly 12%. AGNC, along with the rest of the sector, is lower since Labor Day, but did gain over the past couple of weeks as money exited the broader equity market, and expectations for rate hikes evaporated.
    • Q3 earnings results are due on October 27.
    | 9 Comments
  • Oct. 16, 2014, 4:14 PM
    • American Capital Agency (NASDAQ:AGNC) declares $0.22/share monthly dividend.
    • Forward yield 11.85%
    • Payable Nov. 7; for shareholders of record Oct. 31; ex-div Oct. 29.
    | 54 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