ACRES Commercial Realty Corp 7.875% Series D Cumulative Redeemable Preferred Stock
Lument Finance Trust Inc. 7.875% Series A Cumulative Redeemable Preferred Stock
Ready Capital Corporation 5.75% Senior Notes due 2026
Sachem Capital Corp 7.75% Notes due 9/30/2025
Nexpoint Real Estate Finance 8.50% Series A Cumulative Redeemable Preferred Stock
MFA Finanical 6.50% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock
Dynex Capital Inc. 6.90% Series C Fixed-to-Floating Rate Cuymulate Redeemable Preferred Stock
Rithm Capital (New Rez) Series C 6.375% Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock
AGNC Investment Corp 6.125% Series F Fixed-to-Floating Rate 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.