AGNC Investment leads mortgage REITs through book value

|About: AGNC Investment Corp. (AGNC)|By:, SA News Editor

Hard to believe given that we're in the middle of a Fed rate hike cycle, but an ever-widening swath of the mortgage REIT sector (REM +0.9%) trades at an ever-widening premium to book value.

AGNC Investment (AGNC +1.9%) - which reported an earnings beat last night, but overall, just a modestly profitable quarter - currently is changing hands at $21.18 vs. March 31 book value per share of $20.98.

Capstead Mortgage (CMO +3%) reported a strong quarter all around as its portfolio of variable-rate mortgages saw slowing prepayments. It's going for $11.27 at the moment vs. March 31 book of $10.98.

Not participating in today's rally is Dynex Capital (DX -2.2%), where core income may have disappointed, but book value rose 5% during the quarter. It's still trading at a discount to March 31 book of $7.52.

Still to report Q1 is Annaly Capital (NLY +2.3%) - it's selling for $12 vs. Dec. 31 book of $11.16.

Western Asset (WMC +1%), Armour (ARR +0.8%), Two Harbors (TWO +1%), CYS Investment (CYS +1.7%), New York Mortgage (NYMT -0.5%), MFA Financial (MFA +0.8%), Invesco (IVR +0.7%)

ETFs: MORL, REM, MORT