AGNC is only goverment backed paper (agency) the stuff the Fed's been buying. Driving the price of the paper up and the yeild down. AGNC has been around longer and has a larger portfolio. MTGE is run by the same Management but can buy non-agency(what the Fed's not buying) last report they didn't have alot of non-a. Non has more risk but if agency doesn't look attractive it gives them flexability. Both companies use Hedges to protect thier downside, but it increases their costs.Management has been pretty sharp so far. this whole sector is out of favor. If your looking to avoid share price erosion maybe BDC like PSEC that pays about 12% monthly might suit you better I hope someone else chimes in as I believe many are better informed than I.