AAIC - Assessing AGNC Investment's Results For Q4 2020 (Includes Dividend Projection Through June 2021)

February, 01 2021 10:56 PM Arlington Asset Investment Corp Class A (new)

On 1/25/2021, AGNC reported results for the fourth quarter of 2020. AGNC reported comprehensive income of $660 million and a non-tangible BV as of 12/31/2020 of $17.69 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 the first half of 2021 (June 2021).
I will also provide my thoughts about AGNC’s MBS and derivatives portfolios as of 12/31/2020 and discuss trends that have occurred during January 2021 impacting the sector.
AGNC’s BV performance and the company’s net spread + dollar roll basically matched my expectations. My current price target and recommendation are stated in the “Conclusions Drawn” section.
All things considered, larger-capitalized agency mREIT peers (including AGNC) navigated the COVID-19 pandemic well. This has resulted in nearly a full recovery of AGNC’s lost BV from Q1 2020.

For further details see:

Company Name:	Arlington Asset Investment Corp Class A (new)
Stock Symbol:	AAIC
Market:	NYSE
Website:	arlingtonasset.com