AGNC Investment Q4: 14% Yield, But No Major Re-Rating Potential (Rating Downgrade)

Jan. 28, 2024 11:40 PM ETAGNC Investment Corp. (AGNC) StockNLY, AGNC9 Comments
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Summary

  • AGNC Investment Corporation is a mortgage real estate investment trust with a $60 billion portfolio mainly consisting of 30-year agency mortgage-backed securities.
  • The central bank's shift in interest rate strategy for 2024 has made mortgage trusts more attractive for passive income investors.
  • AGNC stock is now selling at a premium to book value, leading to a modification of its stock classification from Buy to Hold.

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David Gyung

AGNC Investment Corp. (NASDAQ:AGNC) is a well-managed mortgage real estate investment trust with a $60 billion portfolio consisting mainly of 30-year duration agency mortgage-backed securities.

The trust suffered painful declines in its book value last year as the

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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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