many baby boomers are looking for income, safety, and less volatilty. I looked at AGNC's performance October '08 and '09 and the market got slammed, but AGNC went down too but much less and it kept paying it's dividend.
AGNC was born in the middle of the crash, and benefitted from not being tied to investments made without knowing the crash was coming. NLY, by comparison, is still paying for its mistakes. ACAS, which is AGNC's parent company (sorta), really took it in the shorts, and is only now climbing out of that hole, partly with the help of AGNC and MTGE, which have been designed and perfectly positioned for the recovery.
Our only fear now is that the recovery will get overheated and the Fed will jack up short-term rates and kill our spreads (i.e., that the bond-yield curve becomes inverted). That'd create a total disaster here.
The Fed will not jack up short term rates for a while.
the NFP numbers Friday were bad, the "participation rate" is the lowest it has been since 1979.
Plus the amount of people on disability is at an all time high. In August, according to the Social Security Administration, there were a record 8,767,941 American workers collecting federal disability payments, and also 2,018,569 spouses and children of disabled workers collecting benefits.