AGNC Investment Corp. (NASDAQ: AGNCP)

AGNC Investment Corp. is a real estate investment trust that provides private capital to the U. S. housing market by investing primarily in Agency residential mortgage-backed securities on a leveraged basis. The company enhances liquidity in residential real estate mortgage markets and facilitates home ownership in the United States. Its core activities involve acquiring and managing a portfolio of mortgage-backed securities that carry guarantees from U. S. Government-sponsored enterprises or government agencies.

AGNC Investment Corp. generates revenue from interest earned on its investments, net of borrowing and hedging costs, and from net realized gains and losses on investment and hedging activities. The company funds its investments mainly through collateralized borrowings structured as repurchase agreements. It also generates income through TBA dollar roll transactions, which represent a form of off-balance sheet financing.

The company operates through the following segments:

• Agency residential mortgage-backed securities. This segment includes investments in residential mortgage pass-through securities and collateralized mortgage obligations guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. The company may also invest in To-Be-Announced forward contracts and Agency multifamily mortgage-backed securities that benefit from a GSE guarantee of timely payment of principal and interest.

• Non-agency securities. This segment includes Credit Risk Transfer securities, non-agency residential mortgage-backed securities, and commercial mortgage-backed securities. These instruments are issued by private institutions and are not guaranteed by a U. S. Government-sponsored enterprise or agency. The company focuses on non-agency securities where underlying mortgages are secured by U. S. residential properties and on commercial mortgage-backed securities backed by U. S. commercial properties.

AGNC Investment Corp. is a leading provider of private capital to the U. S. housing market and operates in the $9 trillion Agency mortgage-backed securities market. The company competes with other mortgage REITs, government entities, banks, specialty finance companies, public and private funds, insurance companies, and other financial institutions. Its competitive advantages include an active management strategy, sophisticated modeling techniques for asset selection, and access to diverse funding sources through its captive broker-dealer subsidiary.

AGNC Investment Corp. serves investors seeking exposure to the U. S. housing market through its publicly traded common stock. The company’s customer base consists of institutional and retail investors who purchase its stock to gain access to its portfolio of mortgage-backed securities and receive monthly dividend distributions.