American Capital Agency Corp. (NASDAQ:AGNC) has in recent times been going through a turbulent period of trading and especially so during the course of this year. This has also been the case for the rest of the market too as most of them have lost a significant share in the markets in the last 90 days. mREITS are showing strong reactions to the developments made in the industry and their growth and fall have been dependant on the markets and the news. The inverse correlation that the 10 year treasury yields is holding for the mREITS which means that some more companies my lose out on market shares.
American Capital Agency has cut down its dividend by a significant fraction, 24% which isbigger than cuts by companies like Annaly which have only made a 12% cut in their dividend. Following the latest developments, investors are really thinking about which mREIT investment really offers them the best value, most investors look for stock that could not just give them good returns but also given them some amount of protection against losses.
American Capital Agency is a real estate management trust, in other words it is a privately held equity firm which also manages global assets and is publicly traded. The company makes money by investing in agency mortgage backed securities which are leveraged. AGNC is a manager of investments, originator and under-writer of investments in the middle market private equity, energy and infrastructure products, leveraged finances and real estate. It manages a total of $21 billion in assets including those that falls on the balance sheets and the fee earning assets. The total assets are valued at $119 billion under the management.
