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Comprehensive Loss: $0.11 per common share for Q4 2024.
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Economic Return on Tangible Common Equity: Negative 0.6% for Q4 2024.
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Dividends Declared: $0.36 per common share for Q4 2024.
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Tangible Net Book Value Decline: $0.41 per share for Q4 2024.
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Full Year Economic Return: Positive 13.2% for 2024.
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Common Stock Issuance: $511 million raised in Q4 2024, totaling approximately $2 billion for the year.
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Leverage: 7.2 times tangible equity for Q4 2024.
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Unencumbered Cash and Agency MBS: $6.1 billion or 66% of tangible equity at Q4 2024 end.
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Average Projected Life CPR: Decreased to 7.7% from 13.2% at the end of Q3 2024.
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Actual CPRs: Averaged 9.6% in Q4 2024, up from 7.3% in Q3 2024.
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Net Spread and Dollar Roll Income: Declined by $0.06 to $0.37 per common share in Q4 2024.
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Net Interest Rate Spread: Narrowed to just above 190 basis points in Q4 2024.
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Investment Portfolio: Totaled $73.3 billion as of December 31, 2024.
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Non-Agency Securities Portfolio: $884 million at Q4 2024 end.
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Hedge Ratio to Funding Liabilities: Increased to 91% at Q4 2024 end.
Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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AGNC Investment Corp (NASDAQ:AGNC) generated a positive economic return of 13.2% in 2024, driven by a compelling monthly dividend.
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The company successfully raised $511 million of common stock through its at-the-market offering program, contributing to book value accretion.
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AGNC’s leverage remained stable at 7.2 times tangible equity, with a significant portion of capital unencumbered, indicating strong risk management.
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The supply and demand outlook for agency mortgage-backed securities (MBS) appears well balanced, with potential for increased bank demand.
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AGNC’s common stock offers investors an easy way to invest in agency MBS, providing unique diversification benefits and an attractive return profile.
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AGNC reported a comprehensive loss of $0.11 per common share for the fourth quarter, with a negative economic return on tangible common equity of 0.6%.
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Higher interest rates and modestly wider spreads led to a decline in tangible net book value per share by $0.41 in the fourth quarter.
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Net spread and dollar roll income declined by $0.06 to $0.37 per common share due to a narrowing of the net interest rate spread.
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The evolving monetary policy outlook and risk-off sentiment ahead of the presidential election caused agency MBS to underperform swap and treasury hedges.
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There is uncertainty regarding the US housing finance system and the status of the GSEs, which could impact the agency MBS market.
