AGNC(US:AGNC) Prnewswireยท2025-04-21 20:01Core Viewpoint - AGNC Investment Corp. reported a favorable economic return of 2.4% for Q1 2025, despite broader market declines, with a total stock return of 7.8% when dividends are reinvested [5][10]. Financial Highlights - The company declared dividends of $0.36 per common share for the first quarter [10][26]. - The tangible net book value per common share decreased by 1.9% to $8.25 from $8.41 at the end of Q4 2024 [7][10]. - The investment portfolio totaled $78.9 billion, primarily consisting of $70.5 billion in Agency MBS [8][10]. Economic Performance - The economic return on tangible common equity was composed of $0.36 in dividends and a $(0.16) decline in tangible net book value per common share [6][10]. - The net spread and dollar roll income increased to $0.44 per common share from $0.37 in the previous quarter [10][17]. Investment Portfolio - As of March 31, 2025, the weighted average coupon for fixed-rate Agency MBS and TBA securities was 5.03%, slightly up from 5.02% in the previous quarter [9][10]. - The company's investment portfolio included 96% in 30-year fixed-rate Agency MBS [8][10]. Leverage and Liquidity - The tangible 'at risk' leverage ratio was 7.5x as of March 31, 2025, with a liquidity position of $6.0 billion in unencumbered cash and Agency MBS [6][20][10]. - The average cost of funds for the first quarter was 2.75%, down from 2.89% in the prior quarter [15][31]. Market Conditions - Investor sentiment turned cautious due to potential governmental policy actions impacting economic growth and inflation, leading to a flight to high-quality assets [5][6]. - Following the April tariff announcement, financial market volatility increased, resulting in wider Agency MBS spreads [6][10].