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 ...

BETHESDA, Md., July 22, 2024 /PRNewswire/ -- 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 $(0.13) comprehensive loss per common share, comprised of:$(0.11) net loss per common share$(0.02) other comprehensive loss ("OCI") per common share on investments marked-to-market through OCI$0.53 net spread and dollar roll income per common share1Excludes $0.02 per common share of estimated ...

Loading...Loading...This week I want to take a comprehensive look at the current market landscape and some exciting investment opportunities, particularly in real estate and banking sectors.A few weeks ago, we saw a promising inflation report, showing the lowest core increase in over three years and a decrease in the headline number month-over-month. While this is undoubtedly positive news, it’s important to be cautious against excessive optimism. The decrease was largely driven by lower gasoline and rent p ...

PM Images What a week it was as Fed Chair Powell testified in front of the House Financial Service Panel and we got the latest CPI data. The latest CPI print came it at 3%, which is the lowest level since June of 2023, while Core CPI came in at 3.3%. Fed Chair Powell stuck with the same mantra and now that the updated CPI data is out, CME Group is projecting that there is an 88.1% chance the Fed pivots by lowering rates 25 bps at the September meeting. Unemployment is ticking higher and is now at 4.1%, ...

These three stocks can help supplement your monthly income.Most dividend-paying companies in the U.S. tend to pay their dividends on a quarterly basis. However, for investors looking for more frequent payouts to help supplement their income, there are some companies that pay out their dividends on a monthly basis.Let's look at three stocks that cut investors a check each month and see whether they currently look like good investments.1. Realty IncomeKnown as "The Monthly Dividend Company," Realty Income (O ...

The most recent trading session ended with AGNC Investment (AGNC) standing at $10.51, reflecting a +1.35% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 1.85%, and the Nasdaq, a tech-heavy index, added 0.2%.Shares of the real estate investment trust witnessed a gain of 6.58% over the previous month, beating the performance of the Finance sector with its loss of 1.05% and the S&P 500's gain of 3.82%.Investors will be eagerly wat ...