AGNC Investment (AGNC) reported earnings on Wed 26 July 2017 (a/h)

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** charts after earnings **

AGNC Investment reports Q2 (Jun) results, misses on revs :

• Reports Q2 (Jun) earnings of $0.67 per share, may not be comparable to the Capital IQ Consensus of $0.60; revenues fell 16.6% year/year to $181 mln vs the $203.44 mln Capital IQ Consensus.
  • $63.8 billion investment portfolio as of June 30, 2017, comprised of:
    • $46.0 billion Agency MBS
    • $17.3 billion TBA mortgage position
    • $0.6 billion credit risk transfer ("CRT") and non-Agency securities
  • 8.1x tangible net book value "at risk" leverage as of June 30, 2017
    • 8.0x average tangible net book value "at risk" leverage for the quarter
• "We are pleased to report another quarter of solid financial performance for AGNC," commented Gary Kain, the Company's Chief Executive Officer, President and Chief Investment Officer. "Our earnings profile continues to be supportive of our dividend despite an elevated hedge ratio and a reduction in our aggregate interest rate risk position. As we enter the third quarter, returns on levered Agency MBS remain attractive as current valuations reflect the anticipated near-term reduction in MBS purchases by the Federal Reserve. The overhang of possible Federal Reserve tapering has driven wider spreads on Agency MBS over the last year. In stark contrast, the spreads on most credit-centric fixed income investments have tightened to multiyear lows. At the same time, the funding picture for Agency MBS, including rate level and capacity, continues to be very attractive. As such, Agency MBS provide levered investors like AGNC with favorable return potential on an absolute basis and relative to alternatives in the fixed-income and equity markets."