- I am projecting AGNC will report a modest gain regarding the company’s derivative instruments and other securities for the third quarter of 2020.
- Interest rate payer swaps and U.S. Treasury securities across most tenors/maturities experienced a minor-modest increase in rates/yields during the quarter.
- The recent decline in short-term rates negatively impacted AGNC’s quarterly net periodic interest expense regarding its interest rate swaps. This trend has partially mitigated the notable decrease in borrowing costs.
- My projection for AGNC’s net income, net spread + dollar roll income, and EPS for the third quarter of 2020 is stated in the “Conclusions Drawn” section of the article.
- I believe AGNC remains attractively priced due to the fact sector stock prices are still notably below estimated CURRENT BV and earnings should continue improving via the steepened yield curve.
For further details see:
AGNC Investment's Q3 2020 Income Statement And Earnings Projection - Part 2 (Includes Dividend Sustainability Metric + Recommendation)