Loading...
•
Jun 30, 2024
AGNC Q2 2024 Earnings Report
Announced financial results for the quarter ended June 30, 2024.
Key Takeaways
AGNC Investment Corp. reported a comprehensive loss per common share of $(0.13). Net spread and dollar roll income per common share was $0.53. The tangible net book value per common share decreased to $8.40. The company declared dividends of $0.36 per common share and generated an economic return on tangible common equity of -0.9%.
Comprehensive loss per common share was $(0.13).
Net spread and dollar roll income per common share was $0.53.
Tangible net book value per common share as of June 30, 2024 was $8.40.
Dividends declared per common share for the second quarter totaled $0.36.
AGNC
AGNC
Forward Guidance
The longer-term outlook for Agency MBS remains very favorable and continues to provide reason for optimism. Agency MBS spreads have continued to trade in a range that is conducive to favorable long-term risk-adjusted returns for levered investors such as AGNC. Given persistent housing affordability challenges and historically slow prepayment speeds, the net supply of Agency MBS over the intermediate term will likely remain below previous projections. In light of the favorable supply-demand dynamic for Agency MBS and improving monetary policy outlook, we continue to be very optimistic about both the current returns and future prospects for our business.
Positive Outlook
- Agency MBS spreads are conducive to favorable long-term risk-adjusted returns.
- Agency MBS provide meaningful incremental yield relative to U.S. Treasuries and investment grade corporate debt.
- Demand for Agency MBS is expected to continue.
- Net supply of Agency MBS over the intermediate term will likely remain below previous projections.
- The company is very optimistic about both the current returns and future prospects for our business.
Challenges Ahead
- Strong fixed income sector momentum abated in the second quarter.
- The Federal Reserve remained steadfast in its hawkish monetary policy stance.
- Intra-quarter volatility increased.
- Interest rates edged higher.
- Agency MBS spreads to benchmark rates widened.