For most of 2020, the mortgage real estate investment trust (REIT) sector followed the arc of a turnaround story. These stocks were beaten up badly in the early days of the novel coronavirus pandemic, and many became insolvent. Some even became favorites of the Robinhood crowd, which was an unusual thing to see for stocks that were normally associated with income investors, not day traders. AGNC Investment (NASDAQ: AGNC) navigated the crisis better than most of its peers, and it has completed its turnaround. How should investors think about the stock going forward?
Mortgage REITs have a different sort of business model than a typical REIT . Most REITs build properties and lease out the units, and this model is seen most often for offices, apartments, and retail. Mortgage REITs don't own property; they own real estate debt (in other words, mortgages). If you recently refinanced your home, chances are your loan was put into a mortgage-backed security and sold to a mortgage REIT like AGNC Investment.
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AGNC Investment Is All the Way Back From Pandemic Setbacks