AGNC Investment Corp. Provides Company Update
BETHESDA, Md., March 31, 2020 /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") today announced the following updates with respect to its business operations and portfolio management.
"The market disruption and dislocations arising out of the global COVID-19 pandemic have been unprecedented, significantly reducing liquidity in virtually every asset class," said Gary Kain, the Company's Chief Executive Officer and Chief Investment Officer. "Specifically, the volatility and lack of liquidity we experienced in mid-March in Agency mortgage-backed securities ("Agency MBS") reached levels I had never witnessed over the span of my 30-year career. Starting in late February and throughout March, the Company took aggressive actions to counter these extremely challenging market conditions in an effort to strengthen our liquidity position and mitigate risk. Importantly, the unprecedented actions by the Federal Reserve over the last several weeks, in particular its substantial acquisitions of Agency MBS, have significantly improved valuations and stabilized the broader mortgage market.
"As a result of the improvement in Agency MBS valuations and our actions, AGNC's leverage and liquidity levels have returned to recent norms. As such, we believe that the worst is behind us for our Agency MBS portfolio, which allows us to focus on positioning the portfolio to benefit from the opportunities presented by the current market environment."
AGNC today announced the following updates as of close of business on March 27, 2020:
The estimates for tangible net book value; cash, unencumbered Agency MBS, capital and excess margin held at Bethesda Securities, and non-Agency securities; "at risk" leverage; and portfolio size and composition, including total TBA and non-Agency securities, are unaudited and have not been verified or reviewed by any third party. Management's estimates are derived from third party pricing service estimates as of March 27, 2020. Intra-period estimates, including those derived from daily pricing services, are subject to inherent uncertainties, especially in light of recent market volatility and reduced pricing transparency for some assets. Actual amounts may be materially different and are subject to change over time. The Company undertakes no obligation to update or revise these estimates.
For further information or questions, please contact Investor Relations at (301) 968-9300 or IR@AGNC.com.
ABOUT AGNC INVESTMENT CORP.
1 "At risk" leverage is calculated as the sum of Agency and non-Agency repurchase agreements, net TBA position (at cost), and net receivable/payable for unsettled investment securities divided by total stockholders' equity, adjusted to exclude goodwill. AGNC's on-balance sheet leverage includes the components above, except for the Company's net TBA position. Both leverage ratios exclude US Treasury repurchase agreements.
SOURCE AGNC Investment Corp.
Company Codes: NASDAQ-NMS:AGNC
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