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Posted by
Two Blokes Fri at 11:00 PM -
Filed in
Stock
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AGNC Investment Corp. is in a more stable position, with refinancing risk low and cash flow recovering as it shifts toward higher rate mortgage-backed securities. Recent book value gains have been offset by equity dilution, which I view as a negative for shareholder value, especially given AGNC's low price-to-book ratio last year. AGNC's book value is safer than it was, with low refinancing risk and declining MBS spreads, creating a goldilocks environment for leveraged mortgage owners.
