AGNC Investment Corp.: Cyclical Play, Not An Income Asset


  • AGNC Investment Corp. is a mortgage REIT with a high yield but also a history of dividend cuts.
  • Its reliance on leverage and long-term fixed-income assets makes it vulnerable to interest rate fluctuations and margin calls, which lead to permanent losses.
  • AGNC is currently trading at a fair value and isn’t a Buy until the share price reflects a discount to book that can benefit from cyclical tailwinds.

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Klaus Vedfelt

AGNC Investment Corp. (NASDAQ:AGNC) is a well-known mortgage REIT, which often draws the attention of income investors. I’ve even seen some theses that recommend it as part of an income portfolio. Currently, the shares trade at over a 14% yield, which naturally gets

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