Agnc Investment Corp. · NASDAQ:AGNC
Agnc Investment — American Capital Agency — Bank of America Merrill Lynch 2013 Banking & Financial Services Conference
9 slides from Agnc Investment's conference presentation, Nov 12, 2013
Slide 1: Bank of America Merrill Lynch 2013 Banking & Financial Services Conference
Bank of America Merrill Lynch 2013 Banking & Financial Services Conference November 12, 2013 © 2013 American Capital Agency Corp. All Rights Reserved.
Slide 2: Safe Harbor Statement
Nasdaq: AGNC Safe Harbor Statement Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains statements that, to the extent they are not recitations of historical fact, constitute "forward-looking statements" within the meaning of the Private Securit
Slide 3: Capital Stock Highlights
Nasdaq: AGNC Capital Stock Highlights Summary American Capital Agency Corp. is a real estate investment trust that invests in and manages a levered portfolio of residential mortgage securities for which the principal and interest payments are guaranteed by a U.S. government-sponsored entity (Fannie
Slide 4: Near Term Outlook Is Very Dependent on the Fed
Nasdaq: AGNC Near Term Outlook Is Very Dependent on the Fed Economic Growth Economic Growth Regains Momentum Fed Tapers Fails to Pick Up and Fed Tapers In March/April and Fed Does In Near Future - Dec or Jan Not Taper Prior to June Probability Low Low - Medium Moderate Increase Flat to Lower 10-Year
Slide 5: Longer Term Outlook More Predictable
Nasdaq: AGNC Longer Term Outlook More Predictable While the short term outlook is difficult to predict, we do believe that asset positioning for the intermediate to longer term (2 - 5 years) is more straightforward ♦ After the next year or two, it is very likely that the Fed will no longer be purcha
Slide 6: Asset Composition Drives Return of Principal
Nasdaq: AGNC Asset Composition Drives Return of Principal 15-year MBS return principal at a much faster rate than 30-year MBS, which provides greater capacity to redeploy capital in a post QE3 rising rate environment Hypothetical Cumulative Principal Paydown 15-Year MBS vs. 30-Year MBS as a % of Ori
Slide 7: Risk Profile of Different Assets Vary Considerably Over Time
Nasdaq: AGNC Risk Profile of Different Assets Vary Considerably Over Time 15-year MBS “de-lever” (become less risky) at a considerably faster rate over time than 30-year MBS ♦ NAV sensitivity to wider spreads (“basis risk”) on 15-year MBS decreases at a faster rate over time than 30-year MBS Hypothe
Slide 8: Total Economic Returns: Pre and Post QE3
Nasdaq: AGNC Total Economic Returns: Pre and Post QE3 AGNC’s economic return since inception and through the recent challenging environment has outperformed our peer group due in part to AGNC’s active approach to portfolio management AGNC vs. Peer Group Average Historical Economic Returns Jan 1, 200
Slide 9: AGNC's Price to Book Ratio
Nasdaq: AGNC AGNC’s Price to Book Ratio AGNC’s stock price is trading at a material discount to book value ♦ AGNC’s portfolio is comprised of fixed-rate 160 agency MBS: 150 Valuations are transparent 140 Assets are extremely liquid 130 ♦ Share repurchases are accretive and can 120 generate mater