AGNC Investment: Attractive Investment Setup

The Asian Investor
29.53K Followers

Summary

  • AGNC Investment offers a nearly 14% yield, backed by agency mortgage-backed securities, providing steady monthly income.
  • The REIT's portfolio, mainly 30-year fixed mortgages, generated $2.9B in interest income in FY 2024, showing favorable net interest income trends.
  • Falling federal fund rates are expected to improve AGNC's net interest spreads and re-pricing potential, despite recent inflation concerns.
  • AGNC's valuation at a 1.15X price-to-book ratio indicates a premium, but the REIT is poised for fundamental improvements as interest rates are set to decline.

Insurance

Sezeryadigar

Top tier mortgage REIT AGNC Investment (NASDAQ:AGNC) has seen a sharp upwards revaluation so far this year, driven by expectations of an improving lending environment and a favorable outlook for a re-pricing of mortgage-backed securities. AGNC Investment’s mortgage-backed securities

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of AGNC, NLY 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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