AGNC Investment Q3 tops consensus, Fed guidance should limit spread volatility
$AGNC Investment Corp(AGNC.US$CEO Peter Federico says the Federal Reserve's guidance on its timeline for tapering its asset purchases "reaffirms our prior view that mortgage spread volatility should be limited because the Federal Reserve has been transparent and effective in setting expectations."
During the quarter the mREIT's 9% dividend yield, " coupled with a modest increase in tangible net book value in the third quarter, drove our strong economic return of 2.3%," he added.
Q3 net spread and dollar roll income per share of $0.75, tops the consensus estimate of $0.65 and slips from $0.76 in Q2 2021.
Includes $0.33 per common share of dollar roll income associated with AGNC's $30.3B average net long position in forward purchases and sales of agency MBS in the TBA market.
Excludes less than -$0.01 per common share of estimated "catch-up" premium amortization cost due to change in projected constant prepayment rate ("CPR") estimates.
Tangible net book value per common share of $16.41 at Sept. 30 vs. $16.39 at June 30, 2021.
2.3% economic return on tangible common equity in the quarter is comprised of $0.36 dividends per common share and $0.02 increase in TNBV per common share; compares with -5.5% in the previous quarter.
Cash and unencumbered agency MBS totaled ~$5.2B at Sept. 30 vs. ~$4.7B at June 30, excludes unencumbered CRT and non-agency securities and assets held at the company's broker-dealer subsidiary, Bethesda Securities.
AGNC's investment portfolio had a weighted average CPR of 22.5% in Q3 vs. 25.7% in Q2. The weighted average projected CPR for the remaining life of the company's agency securities held as of Sept. 30, 2021 decreased to 10.7% from 11.6% as of June 30, 2021.
Conference call on Oct. 26 at 8:30 AM ET.
Earlier, AGNC Investment EPS beats by $0.10.
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Brain Gomes : So they pay us 36 per quarter dividend and earn 75 cents. Yup, I;d say the dividend is pretty safe
Hopefully one day soon we will get the dividend back or close to pre covid levels of $0.16
I stuck with them through the pandemic and added more as I started unwinding my position in PCI.
StevenTHC :