AGNC Investment Corp a Buy After Its Latest Earnings Report?

AGNC Investment Corp’s third quarter was pressured by a jump in interest rates that pushed fixed-income investors to a more bearish stance. The mortgage REIT posted a negative 12.7% economic return for the period, and its spread income declined for the third straight quarter. However, the company raised nearly $1 billion in equity capital at a premium to book value, providing some support. In the quarter, net spread and dollar roll income fell from $0.40 per share in Q2 to $0.37 in Q3, slightly above its $0.36 per share dividend. Tangible net book value per share dropped 16.9% to $7.13, and leverage rose to 7.9x from 7.4x, above its 7.0x–7.5x target range.