Sector: Mortgage
AGNC Investment Corp 7.75% Series G Fixed-Rate Reset Cumulative Redeemable Preferred Stock
AGNC’s business model involves borrowing money at short-term interest rates and investing in long-term residential mortgage-backed securities. The difference between the short-term borrowing rate and the long-term mortgage yield is the profit margin for the REIT. This strategy allows AGNC to generate high levels of income for its shareholders, often yielding more than other types of REITs and traditional fixed-income investments.
However, like all mortgage REITs, AGNC is subject to a number of risks, including interest rate risk, credit risk, and liquidity risk. Interest rate risk arises from the fact that AGNC borrows at short-term rates and invests in long-term assets, meaning its profits are sensitive to changes in interest rates. Credit risk refers to the possibility of defaults or other problems with the underlying mortgages in AGNC’s portfolio. Liquidity risk refers to the possibility that AGNC may have difficulty selling its investments to meet its obligations, particularly during periods of market turbulence.
Despite these risks, AGNC has a strong track record of delivering consistent income to its shareholders and is well-regarded in the mortgage REIT industry. The company has a strong management team and a well-established investment strategy, making it a popular choice among investors seeking high-yielding income investments.
Ellington Financial Inc. 6.25% Series B Fixed Rate Reset Cumulative Redeemable Preferred Stock
Granite Point Mortgage Trust Inc 7.00% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock
New York Mortgage Trust 7.00% Series G Cumulative Redeemable Preferred Stock
Rithm Capital (New Rez) 7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock
Pennymac Mortgage Investment Trust 6.75% Series C Cumulative Redeemable Preferred Stock
Arbor Realty Trust Inc. 6.25% Series E Cumulative Redeemable Preferred Stock
New York Mortgage Trust Inc. 6.875% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock
Arbor Realty Trust Inc. 6.375% Series D Cumulative Redeemable Preferred Stock
the quotient obtained by dividing (i) the sum of the $25.00 liquidation preference per share of the Series D Preferred Stock plus the amount of any accumulated and unpaid dividends thereon to, but not including, the Change of Control Conversion Date (unless the Change of Control Conversion Date is after a dividend record date and prior to the corresponding dividend payment date for the Series D Preferred Stock, in which case no additional amount for such accrued and unpaid dividend will be included in this sum) by (ii) the Common Stock Price (as defined herein); and 2.8571, or the Share Cap, subject to certain adjustments as explained herein; in each case, on the terms and subject to the conditions described in this prospectus supplement, including provisions for the receipt, under specified circumstances, of alternative consideration as described in this prospectus supplement.