AAIC - Assessing AGNC Investment's Results For Q1 2021 (Includes Dividend Projection Through July 2021)

• On 4/26/2021, AGNC reported results for the first quarter of 2021. AGNC reported comprehensive income of $738 million and a non-tangible BV as of 3/31/2021 of $18.72 per common share.
• In this article, I will discuss my previous account projections versus actual results. I will also discuss AGNC’s dividend sustainability through July 2021.
• I will also provide my thoughts about AGNC’s MBS and derivatives portfolios as of 3/31/2021 and discuss trends that have occurred during April 2021 impacting the sector.
• AGNC’s BV performance and the company’s net spread + dollar roll exceeded my already high expectations. My current price target and recommendation are stated in the “Conclusions Drawn” section.
• The vast majority of AGNC’s BV outperformance centered around one account; AGNC’s lifetime CPR/premium amortization expense adjustment. This assessment article fully discusses this topic.

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