Q3 2024 AGNC Investment Corp Earnings Call Transcript
Key Points
- AGNC Investment Corp (AGNC) generated a strong economic return of 9.3% in the third quarter, driven by solid book value growth and a stable monthly dividend.
- The Federal Reserve's shift towards a more accommodative monetary policy is seen as a positive development for AGNC and fixed income markets.
- AGNC's diversified mix of assets and longer-term Treasury-based hedges contributed positively to performance.
- The company raised $781 million through its at-the-market offering program, benefiting from a substantial price-to-book premium.
- AGNC's total stock return with dividends reinvested was 17.5% over the first nine months of the year, showcasing its ability to generate attractive returns.
- AGNC's tangible net book value per common share decreased by about 3% for October, reflecting recent market volatility.
- Net spread and dollar roll income declined by $0.10 to $0.43 per common share for the quarter, impacted by a reduction in net interest rate spread.
- The company experienced a decline in leverage to 7.2 times tangible equity, indicating a more cautious stance amid market conditions.
- AGNC anticipates a period of increased volatility due to the upcoming election, which may require defensive positioning.
- The backup in interest rates and the resulting volatility have negatively impacted AGNC's book value in the short term.
Good morning, everyone, and welcome to the AGNC Investment Corp third quarter, 2024 shareholder call. (Operator Instructions) Please note today's event is being recorded. At this time, I'd like to turn the comments call over to Katie Turlington of Investor relations. Please go ahead.
Thank you all for joining AGNC Investment Corp's third quarter 2024 earnings call. Before we begin, I'd like to review the safe harbor statement. This conference call and corresponding slide presentation contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
All such forward-looking statement are intended to be subject to the safe harbour protection provided by the Reform Act. Actual outcomes and results could differ materially from those forecasts due to the impact of many factors beyond the control of AGNC. All forward-looking statements included in this presentation
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