Is AGNC Investment Corp (AGNC) a Sustainable Stock?

AGNC Investment Corp. has a 15% forward yield, but it may not be sustainable due to negative net interest income. The company relies on derivatives to mitigate the risks of borrowing short and lending long, but this reduces profitability.

Why is AGNC investing in 30-year mortgage agency securities?

This has continued in Q1 and has been an issue for many years. To tie it in a neat bow, AGNC's strategy is mostly investing in 30-year mortgage Agency securities for their strong credit profile (as well as a handful of similar investments), which can provide interest income over decades. In order to magnify returns, leverage is used.

How did AGNC perform in Q1 2024?

In Q1 2024, AGNC reported a comprehensive income of $366 million, or $0.48 per common share, compared to $1.00 per share in the previous quarter but up from a loss of $0.07 per share during the first quarter of 2023.