AGNC
- AGNC Investment Corp.
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Overview
Company Summary
AGNC Investment Corp., commonly referred to as AGNC, is a real estate investment trust (REIT) that primarily focuses on investing in agency mortgage-backed securities (MBS). The company primarily deals in residential mortgage loans insured by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac.
AGNC acquires agency MBS, which are backed by pools of residential mortgage loans, and generates income from the interest payments on these securities. Their portfolio consists of a wide range of MBS, including fixed-rate, hybrid adjustable-rate, and adjustable-rate mortgage securities.
As a REIT, AGNC is required to distribute a significant portion of its taxable income to shareholders in the form of dividends. Therefore, the majority of their profits are returned to their shareholders through regular dividend payments.
AGNC employs various strategies to manage its portfolio and mitigate risks associated with interest rate fluctuations and prepayment uncertainty. These strategies include active asset and liability management, hedging, and selective investment in certain types of MBS.
In summary, AGNC Investment Corp. is a REIT that invests in agency mortgage-backed securities, aiming to generate income from the interest payments on these securities and distributing a significant portion of its taxable income to its shareholders.