Defending AGNC's Dividend

Patient Tech Investor
3.99K Followers

Summary

  • AGNC invests heavily in Agency MBS and TBA mortgage assets, managing risks from interest rate volatility through hedging.
  • The treasury market is experiencing a historic multiyear repricing event, causing underperformance in asset values.
  • AGNC's common stock dividend remains aligned with the expected return on their portfolio at current valuation levels.

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AGNC (NASDAQ:AGNC) invests heavily in Agency MBS and TBA mortgage assets by purchasing lower interest bonds, followed with hedging in order to manage risks from interest rate volatility. In defining each, first Agency MBS:

"Agency MBS are created

This article was written by

3.99K Followers
I have been an investor for several decades enduring the 87 crash, 2000 crash, and 08 crash. I do use trading systems developed with TradeStation. I have enjoyed the rewards from both buy and hold and trading. My professional experiences includes several decades as a process control engineer. I hold a JD from an eastern law school.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AGNC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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