Agnc Investment Corp. · NASDAQ:AGNC
Agnc Investment — American Capital Agency — Barclays Global Financial Services Conference 2016
12 slides from Agnc Investment's conference presentation, Sep 13, 2016
Slide 1: Barclays Global Financial Services Conference
© 2016 American Capital Agency Corp. All Rights Reserved. * Not affiliated with American Capital, Ltd. BARCLAYS GLOBAL FINANCIAL SERVICES CONFERENCE SEPTEMBER 13, 2016 * Exhibit 99.1
Slide 2: Safe Harbor Statement
NASDAQ: AGNC 2 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 Securities Litigation Reform Act of 1995 (the “Reform Act”). All such forward-looking statements are intende
Slide 3: Presentation Overview
NASDAQ: AGNC 3 The AGNC Value Proposition ♦ AGNC offers a compelling value proposition to its shareholders as the largest internally- managed residential mortgage REIT with one of the lowest operating cost structures in the industry1 and a proven track record of strong performance since inception2 F
Slide 4: The AGNC Value Proposition
NASDAQ: AGNC 4 THE AGNC VALUE PROPOSITION AS THE LARGEST INTERNALLY-MANAGED RESIDENTIAL MORTGAGE REIT, AGNC OFFERS A COMPELLING VALUE PROPOSITION TO ITS SHAREHOLDERS Industry-Leading Performance Highly Efficient Operating Cost Structure Disciplined Risk Management Stockholder Focus Liquidity and Sca
Slide 5: Lower for longer interest rate outlook
NASDAQ: AGNC 5 ♦ Since the financial crisis in 2008, global central banks have reacted to weak global growth by lowering interest rates and making substantial asset purchases ♦ Despite massive quantitative easing (QE) and negative interest rates in many parts of the world, growth remains subdued, an
Slide 6: Agency MBS Funding Market Update
NASDAQ: AGNC Source: Bloomberg, Credit Suisse and management estimates. 6 AGENCY MBS FUNDING MARKET UPDATE ♦ Recent money market reform policies have caused a shift in asset holdings from prime funds to government funds The shift to government assets is supportive of the agency MBS market and thus
Slide 7: Post-Internalization Operating Cost Structure
NASDAQ: AGNC POST-INTERNALIZATION OPERATING COST STRUCTURE 7 AGNC IS EXPECTED TO HAVE ONE OF THE LOWEST RUN-RATE OPERATING COST STRUCTURES AS A PERCENTAGE OF STOCKHOLDERS’ EQUITY OF ANY RESIDENTIAL MORTGAGE REIT1 Operating Cost Structure Comparison Across Residential Mortgage REIT Universe1 (Operati
Slide 8: Overview of Credit Risk Transfer Securities
NASDAQ: AGNC 8 OVERVIEW OF CREDIT RISK TRANSFER SECURITIES 1. Other than a portion of the credit exposure on loans with loan-to-value ratios in excess of 80%, which require loan-level credit enhancement such as mortgage insurance. Source: FHFA. ♦ Prior to 2013, the GSEs retained virtually all prime
Slide 9: The CRT Investment Opportunity for AGNC
NASDAQ: AGNC 9 THE CRT INVESTMENT OPPORTUNITY FOR AGNC 1. Dotted lines reflect annualization of 2016 YTD volumes. 2. All pricing dates are during 2016. Source: Bloomberg. Favorable CRT Supply Strong Return Profile ♦ The emergence of CRT securities offers AGNC the opportunity to diversify its portfol
Slide 10: Conclusion and Outlook
NASDAQ: AGNC CONCLUSION AND OUTLOOK 10 ♦ AGNC’s agency-focused investment model provides a strong foundation to generate attractive returns ♦ The recent internalization provides AGNC with a highly efficient operating cost structure, further enhancing AGNC’s return potential and more closely aligning
Slide 11: Appendix Endnotes
APPENDIX ENDNOTES
Slide 12: Endnotes
NASDAQ: AGNC 12 1) Mortgage REIT universe comprised of AJX, ANH, ARR, CHMI, CIM, CMO, CYS, DX, EARN, IVR, MFA, MITT, MTGE, NLY, NRZ, NYMT, OAKS, ORC, PMT, RWT, TWO and WMC. Mortgage REIT cost structures based on last twelve months’ operating expenses and average stockholders’ equity over the same pe
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