American Capital Agency Corp. (NASDAQ:AGNC) has of late been through a really turbulent period of trading this year. This is true for all major players in this segment as most of them have lost a sizeable share of the market value in the last 3 months. mREITs are moving in an inverse correlation to the 10 year treasury yields which is expected, these leveraged investments have shown strong reactions to industry developments. One such development that had an impact was the news that the FED did not start off with its QE taper on the 18th of September despite speculation. American Capital Agency gained 3.5% and the MREIT industry gained 2.8% as a whole.
American Capital Agency has announced a cut its third-quarter dividend by a significant percentage-24%. Some other companies like Annaly have only cut down dividend by 12.5%. This has provoked investory to really think about which mREIT offers a better investment value, Annaly, on the other hand, cut its dividend by just 12.5%. Following the recent mREIT developments, investors are now wondering and weighing which mREIT investment really offers a better value, Annaly or American Capital Agency Corporation. Most mREIT investors look for stocks that offer a certain level of protection against loss of capital rather than just high-income paying stock. Looking at the results from the second quarter, Annaly seems to be a better option for the mREIT investors although the margin here is not that substantial./ The following factors can be considered to arrive at the conclusion, Dividend, Interest Rate Sperad, Earnings and Book Values.
Capital Ltd. is a private equity firm which is publicly traded and it also manages global assets. AGNC manages investments, underwrites and originates investments in middle market private equity, real estate, energy and infrastructure products and leveraged finances. It manages a total of $21 billion in assets including the assets that fall on its balance sheets and fee earning assets that the management has kept thought affiliate managers. The total assets under management stand at $119 billion and it also includes leveraged assets industry and structured products. American Capital manages $21 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $119 billion of total assets under management.
