AGNC Investment Rated Buy on Improved MBS Spreads Despite Book-Value Risk
AGNC Investment Corp. earned a Buy rating on improved Agency MBS spreads and funding costs, with Q1 net spread and dollar-roll income of $0.42 per share covering its ~14% dividend yield despite ongoing book-value volatility [1].
Investment Corp. received a Buy rating driven by improved Agency mortgage-backed securities spreads, lower funding costs, and constructive capital issuance above book value, though the company's dividend carries book-value volatility and spread-sensitivity risks [1]. The company trades at a ~14% dividend yield.
In the first quarter, generated net spread and dollar-roll income of $0.42 per share, comfortably covering the dividend [1]. Book value declined during the period, however, highlighting the ongoing tension between current income and capital preservation that defines the mortgage-REIT sector [1].
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