Q2 2025 AGNC Investment Corp Earnings Call Transcript
Key Points
- AGNC Investment Corp (AGNC) maintained a strong liquidity position, with $6.4 billion in cash and unencumbered agency MBS, representing 65% of tangible equity.
- The company successfully raised nearly $800 million of common equity at a significant premium to tangible net book value, providing additional capital for strategic deployment.
- AGNC Investment Corp (AGNC) was able to navigate significant financial market volatility without selling assets, preserving the portfolio's value.
- The company expects favorable conditions for agency mortgage-backed securities (MBS) due to anticipated regulatory changes and a stable supply environment.
- Key policymakers have reaffirmed the government's commitment to maintaining the implicit guarantee for agency MBS, which is expected to support tighter mortgage spreads over time.
- AGNC Investment Corp (AGNC) reported a comprehensive loss of $0.13 per common share for the second quarter, with an economic return on tangible common equity of negative 1%.
- The performance of agency mortgage-backed securities was notably weaker quarter-over-quarter, with spreads to treasury and swap rates widening.
- Net spread and dollar roll income declined by $0.06 to $0.38 per common share, primarily due to the timing of capital deployment and higher swap costs.
- The company's leverage increased slightly to 7.6 times tangible equity, up from 7.5 times at the end of Q1, indicating higher financial risk.
- Foreign investor demand for MBS may be hindered by US dollar weakness and geopolitical risk, potentially impacting future performance.
Good morning and welcome to the AGNC Investment Corp., second 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, Investor Relations. Please go ahead.
Thank you all for joining AGNC Investment Corp., second 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 facts, 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 forecast due to the impact of many factors beyond the control of AGNC. All forward-looking statements included in this presentation are made only
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