AGNCL — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-10-29

• Fixed income markets experienced significant pressure during the third quarter of 2026, particularly in the final weeks of September, as a confluence of adverse developments caused investor sentiment to turn decidedly bearish, interest rates to increase sharply, and interest rate volatility to spike…

• The challenging fixed income environment was driven by a number of negative catalysts, including substantial monetary policy uncertainty, mixed inflation data, historically high levels of corporate debt issuance, heightened geopolitical risk, elevated energy prices associated with the conflict in th…

• rate increase, however, federal funds futures priced in four additional rate increases by mid-2027, representing a 200-basis-point increase in the expected path of monetary policy over a very short period of time.

• Against this backdrop, the yield on the 10-year U.S. Treasury increased 82 basis points during the quarter to 5.29%, with 54 basis points of that increase occurring in September. A quarterly increase of that magnitude has occurred on only four other occasions over the last 30 years. This weakness in…

• As is often the case when U.S. Treasury yields rise sharply, Agency RMBS experienced greater weakness than other fixed income sectors during the third quarter. The Bloomberg U.S. Mortgage Backed Securities Index (the “Agency MBS Index”) generated a total return of approximately -4.25% for the quarte…

Text removed vs the prior filing · source: 10-Q · 2026-07-31

• The investment environment during the second quarter of 2026 was shaped by heightened geopolitical uncertainty as escalating rhetoric and hostilities between the United States and Iran dominated financial market performance. With ship traffic through the Strait of Hormuz severely constrained, elevat…

• In aggregate, Agency RMBS in the second quarter outperformed both Treasury and swap-based hedges, with performance varying meaningfully by coupon and hedge type. Higher-coupon and production-coupon Agency RMBS outperformed lower-coupon securities as rising interest rates reduced both expected supply…

• Agency RMBS hedged with interest rate swaps also outperformed Treasury-hedged positions. At quarter-end, the spread differential between a current-coupon mortgage-backed security and a blend of hedges was approximately 145 basis points across the swap curve and 115 basis points across the Treasury c…

• Looking forward, our outlook for Agency RMBS remains constructive. With primary mortgage rates remaining well above 6.0%, net new Agency RMBS supply is estimated to be approximately $150 billion this year, materially below expectations at the beginning of the year. Elevated mortgage rates have also …

• AGNC generated total comprehensive income of $0.52 per diluted common share and an economic return on tangible common equity per share of 6.7% for the second quarter, consisting of $0.36 of dividends declared per common share during the second quarter and a $0.20 increase in tangible net book value …

Text added vs the prior filing · source: 10-Q · 2026-10-29

• We are subject to interest rate risk in connection with the fixed income nature of our assets and the short-term, variable rate nature of our financing obligations. Our operating results depend in large part on differences between the income earned on

• our assets and our cost of borrowing and hedging activities. The costs associated with our borrowings are generally based on prevailing market interest rates. During a period of rising interest rates, our borrowing costs generally will increase while the yields earned on our existing portfolio of le…

• and prices as of such dates; however, our portfolio’s sensitivity to mortgage spread changes will vary with changes in interest rates and in the size and composition of our portfolio. Therefore, actual results could differ materially from our estimates.

• repurchase agreements and derivative agreements was less than 2% and less than 1%, respectively, of tangible stockholders’ equity.

Text removed vs the prior filing · source: 10-Q · 2026-07-31

• We are subject to interest rate risk in connection with the fixed income nature of our assets and the short-term, variable rate nature of our financing obligations. Our operating results depend in large part on differences between the income earned on our assets and our cost of borrowing and hedging…

• funding liabilities. Significantly higher haircuts or initial margin requirements can reduce our ability to leverage our portfolio or may even force us to sell assets, especially if correlated with asset price declines or faster prepayment rates on our assets.

Text removed vs the prior filing · source: 10-Q · 2026-07-31

• On June 1, 2026, Peter Federico, our President, Chief Executive Officer, Chief Investment Officer, and a Director, adopted a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) providing for the sale of up to 203,382 shares of our common stock. The trading a…