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American Capital Agency Corp. Message Board

  • mbl0822 mbl0822 Jun 21, 2013 3:06 PM Flag

    AGNC will be making money for some time

    Long term rates are up considerably and, yes, that affects book value, but AGNC makes money on the spread and short term rates aren't going up anytime soon. The new capital AGNC can reinvest, from both payoffs and principal payments will be earning larger spreads. With their leverage this will be enhancing income sooner than the market seems to think. With the economy in neutral and perhaps turning down again, SHORT TERM RATES ARE NOT GOING UP. This means lots of income for AGNC looking out a couple of quarters. I have sold puts at 25 and will think of selling more

    Sentiment: Buy

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