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AGNC Investment Corporation, 6.50% Series E Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock

AGNC Investment Corp (AGNC) is a Mortgage Real Estate Investment Trust (REIT) that specializes in investing in residential mortgage-backed securities. AGNC is one of the largest mortgage REITs in the United States and has a strong track record of delivering consistent income to its shareholders.

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.

The dividend is fixed at 6.50% until 10/15/2024 after which it floats at 3 month Libor plus a spread of 4.993%





AGNCO
AGNC
AGNIP
09/26/2019
10/15/2024
None
14,000,000
2,100,000
6.50%
$25.00
Yes
No
0.4063
JAN, APR, JUL, OCT
15
NR
C
NR
NR