Q1 2025 AGNC Investment Corp Earnings Call Transcript
Key Points
- AGNC Investment Corp (AGNC) generated an economic return of 2.4% in the first quarter, driven by an attractive monthly dividend.
- The company's total stock return with dividends reinvested was a positive 7.8% for the quarter.
- AGNC maintained a strong liquidity position with $6 billion in cash and unencumbered Agency MBS, representing 63% of tangible equity.
- Net spread and dollar roll income increased to $0.44 per common share, driven by a higher net interest rate spread and larger asset base.
- AGNC's outlook for Agency MBS remains positive, with expectations of regulatory relief potentially increasing demand from banks.
- AGNC's net asset value was negatively impacted by mortgage spread widening, resulting in a $0.16 decline in tangible net book value per share.
- Interest rate volatility and macroeconomic uncertainty caused financial market correlations to break down, affecting liquidity and investor sentiment.
- The current coupon spread to a blend of swap rates reached an intraday peak of 230 basis points, indicating significant pressure on the Agency MBS market.
- Quarter-end leverage increased to 7.5 times tangible equity, up from 7.2 times at year-end, due to the decline in tangible net book value per share.
- The average projected life CPR in AGNC's portfolio increased to 8.3% at quarter end, indicating a rise in prepayment risk.
Good morning, and welcome to the AGNC Investment Corp., first-quarter 2025 shareholder call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Katie Turlington in Investor Relations. Please go ahead.
Thank you all for joining the AGNC Investment Corp., first-quarter 2025 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 statements are intended to be subject to the Safe Harbor 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 in this presentation are made only as of
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
