Jump to content

American Capital Agency Corp. (AGNC)


Daytripper
 Share

Recommended Posts

I looked at this company late last year and my notes have a byline: Moral Hazard, Inc.

 

It seems as though the managers are taking a nice fee for allowing investors to risk their money on a yield curve carry trade. I'm curious to know how they will adjust the business model in the event of rate increases.

 

Otherwise, it looks like a game of repo hot potato.

Link to comment
Share on other sites

Beware of these mortgage REITs... run when people 'value' them based on P/E.

 

Trades above book... understand how it is they make so much money, and what skill is involved.

 

I'm long ACAS (edit: which owns a stake in AGNC), but am generally highly skeptical of all mREITs that aren't trading well below book, or named Annaly.

 

Ben

Link to comment
Share on other sites

Mortgage REIT with a huge dividend (21%+).  Company and/or risk seems to be misunderstood.  Any opinions on AGNC?

 

I own a very small position in it. Short-term hold while yield curve is steep. I would recommend looking at ANH as well. This REIT is trading at less than book with a company buy back in place.

 

Overall small positions and clearly a bet on the yield curve. My personal opinion, derived from my job as a commercial lender, is that the economy remains weak and that the government is going to be slow in increasing rates. This should allow for another 12 months of solid dividends.

 

 

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...