ryasick Inflation continued to moderate in the month of June and the Fed is moving closer to its ‘pivot point’… the point at which it will reduce the federal fund rate and provide relief to those investment companies that rely on a lot of debt to buy mortgage securities. AGNC Investment (NASDAQ:AGNC) is set to be one beneficiary of this changing federal fund rate trajectory, which could be a catalyst for the company’s large mortgage-backed securities portfolio. AGNC reported slightly weaker than expecte ...

Why lower rates should bode well for the stockWith a forward dividend yield of about 14%, AGNC Investment (AGNC 1.82%) is a stock that likely shows up on a lot of income-focused investors' radars. The mortgage real estate investment trust (mREIT), which buys government agency mortgage-backed securities (MBS), has had a difficult few years due to increasing interest rates that have reduced the value of its holdings.With the mREIT recently reporting its second-quarter results, let's see if there are signs of ...

DNY59 Co-authored by Treading Softly. So many of us have been obsessive over the impact of high levels of inflation on everyone's wallets. When you go to the grocery store, what used to cost you $100 four years ago now costs you over $120. Inflation's compounding effect has had a massive impact on the everyday American. But it's not just the United States that's experiencing widespread inflation; economies all over the globe are feeling the pinch of higher levels of inflation. Inflation is the devaluati ...

iridi Foreword All but six equities and all of the funds listed in this July monthly pay batch live up to the ideal of paying annual dividends from a $1K investment exceeding their single share price. Here, in the MoPay collection, lie affordable (yet volatile and risky) bargains. The dogcatcher rule of thumb is: one metric ($1k invested dividend income>1 share price) fits all! Now, over four and one-quarter years past the 2020 Ides of March market dip, and before other pull-backs yet to come, the time ...

The mortgage REIT is very optimistic about what's ahead.AGNC Investment (AGNC -3.68%) offers investors a prodigious payout. The mortgage-focused real estate investment trust (REIT) currently yields around 14%. That's more than 10 times the S&P 500's recent dividend yield of around 1.3%. The mortgage REIT experienced some renewed headwinds in the second quarter, which might increase concerns about dividend sustainability. However, it remains optimistic about the future, which bodes well for its ability to ma ...

Core Viewpoint - AGNC Investment Corp. is showing a positive trend in net interest income, supported by cooling inflation and potential interest rate cuts by the central bank, which could lead to double-digit returns for mortgage trusts [1][2][10] Group 1: Financial Performance - AGNC Investment's net interest income was negative at $3 million in Q2 2024, but this represents an improvement from a loss of $69 million in the same period last year, indicating a positive trend [5] - The company's net book value as of June 30, 2024, was $8.40, reflecting a 5% QoQ drop, marking the largest decline since Q3 2023 [7] - The stock is currently trading at a 9% premium to book value, which is higher than the 1% premium for Annaly Capital Management, suggesting a potential for multiple decompression as interest rates decrease [8] Group 2: Market Conditions - The CPI report indicates that inflation cooled to 3.0% in June from 3.5% in March, increasing the likelihood of a near-term rate cut by the central bank, which would benefit mortgage real estate investment trusts like AGNC [4] - AGNC Investment's portfolio primarily consists of 30-year fixed-rate mortgages valued at $65.0 billion as of June 30, 2024, an increase of $2.8 billion QoQ [3] Group 3: Investment Outlook - The company is expected to benefit from lower short-term funding rates and cooling inflation, which should enhance its net interest margin moving forward [4][10] - The outlook for profit growth is improving, with expectations that AGNC Investment could soon return to positive net interest income, supported by lower borrowing costs [10]

AGNC Investment Corp.’s (AGNC) second-quarter 2024 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization benefit) of 53 cents matched the Zacks Consensus Estimate. However, the bottom line declined from the 67 cents reported in the previous quarter.Adjusted net interest and dollar roll income of $482 million moved down from $496 million in the previous quarter.The company reported a second-quarter comprehensive loss per common share of 13 cents against compr ...

Financial Data and Key Metrics Changes - AGNC reported a comprehensive loss of $0.13 per share for Q2 2024, with an economic return on tangible common equity of negative 0.9% [14] - The tangible net book value per share declined by $0.44, but was up about 2% for July [14] - Leverage increased to 7.4 times tangible equity from 7.1 times in Q1 [15] - Liquidity remained strong with unencumbered cash and agency MBS of $5.3 billion, representing 65% of tangible equity [15] Business Line Data and Key Metrics Changes - The average projected life CPR for the portfolio decreased by 120 basis points to 9.2%, while actual CPRs increased to an average of 7.1% from 5.7% in the prior quarter [15] - Net spread and dollar roll income for the quarter was $0.53 per share, with a decline in net interest rate spread of approximately 30 basis points to just under 270 basis points [15] Market Data and Key Metrics Changes - The second quarter saw $52 billion in mortgage supply, double the pace of the first quarter, leading to a widening of agency MBS spreads [10] - Agency MBS spreads to treasuries widened by 5 to 10 basis points across the coupon stack [10] - The 10-year treasury yield ended the quarter just 20 basis points higher, with significant volatility throughout the quarter [9] Company Strategy and Development Direction - The company remains optimistic about the long-term fundamentals for agency MBS, citing persistent affordability challenges and historically slow prepayment speeds [13] - The company plans to approach the upcoming election with a lower risk profile, avoiding significant interest rate risk until the political landscape becomes clearer [26][30] - The company anticipates that bank regulation will become less onerous, potentially increasing demand for mortgage-backed securities [34] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic data is supportive of the Fed moving toward a more accommodative monetary policy stance, which is expected to begin over the next several months [12] - The company highlighted that the earnings environment for agency MBS remains favorable, with historically wide spreads and low levels of prepayment risk [20] - Management expressed caution regarding the upcoming election's impact on investment positioning and volatility, indicating a need to monitor developments closely [26] Other Important Information - The company issued $434 million of common equity through its aftermarket offering program, investing proceeds in attractively priced assets [16] - The hedge portfolio increased to $58.8 billion, with a shift towards a heavier allocation of swap-based hedges [19] Q&A Session Summary Question: Impact of the presidential election on investment positioning - Management indicated that the political landscape is evolving and will be monitored closely, with a cautious approach to interest rate risk in a high volatility environment [26][30] Question: Demand for agency MBS - Management noted that while bank demand moderated, demand from bond funds remained steady, and they expect demand for mortgage-backed securities to improve as monetary policy outlook becomes clearer [31][34] Question: Setting the dividend - Management explained that the dividend is set based on total cost of capital and the economics of the business, with current expectations aligning with a return on equity of 16% to 19% [37][40] Question: Spreads and funding markets - Management discussed the widening of spreads and the impact of elevated SOFR rates, indicating that the Fed's balance sheet runoff is being monitored closely [42][48] Question: Net interest margin outlook - Management acknowledged that the decline in net interest margin was influenced by the addition of longer-term swaps and indicated that future NIM changes will depend on portfolio growth and attractive investment returns [51][54] Question: Share issuance dynamics - Management clarified that share issuance is based on market conditions and portfolio needs, allowing for flexibility in capital raising [56][58] Question: Leverage considerations - Management stated that the current cash position allows for increased leverage if desired, but volatility and market conditions will inform their decisions [63][65] Question: Prepayment speed forecast - Management indicated that the forecast assumes realization of forward rates, with manageable convexity risk in the current environment [68]

4 2 0 Q2 STOCKHOLDER PRESENTATION JULY 23, 2024 THE PREMIER AGENCY RESIDENTIAL MORTGAGE REIT 2 © 2024 AGNC Investment Corp. All Rights Reserved. IMPORTANT NOTICES Safe harbor statement under the private securities litigation reform act of 1995 This presentation contains statements that, to the extent they are not recitations of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). All such forward-looking state ...

Exhibit 99.1 FOR IMMEDIATE RELEASE July 22, 2024 CONTACT: Investors - (301) 968-9300 Media - (301) 968-9303 AGNC INVESTMENT CORP. ANNOUNCES SECOND QUARTER 2024 FINANCIAL RESULTS Bethesda, MD - July 22, 2024 - AGNC Investment Corp. ("AGNC" or the "Company") (Nasdaq: AGNC) today announced financial results for the quarter ended June 30, 2024. SECOND QUARTER 2024 FINANCIAL HIGHLIGHTS OTHER SECOND QUARTER HIGHLIGHTS • $(0.13) comprehensive loss per common share, comprised of: ◦ $(0.11) net loss per common share ...