AGNC Investment Dep Shares 1/1000 Cumulative Series E

AGNCO

U.S. equity markets posted mixed performance this week- while long-term yields jumped- after the Federal Reserve cut short-term rates for a second-straight meeting, but reigned in expectations for future cuts. Fed Chair Powell hawkishly pushed back on market expectations, saying that another cut in December was "far" from certain and highlighting "strongly differing views" within the committee. Market breadth was exceptionally narrow this past week as post-earnings gains from a handful of mega-cap technology stocks offset weekly declines from over 70% of the S&P 500 constituents.

Preferreds offer attractive post-tax yields and favorable tax treatment compared to corporate bonds, making them appealing income assets for investors. Active ETFs like FPE and FPEI, and select CEFs such as PFO and FFC, have outperformed passive ETFs, which struggle with high fees and index-related inefficiencies. Individual preferreds allow for targeted interest rate exposure, relative value opportunities, and avoidance of fund management fees.

U.S. equity markets climbed to fresh record-highs this past week, while interest rates hovered around multi-year lows, after cool inflation data cleared the path for additional Federal Reserve rate cuts. The Consumer Price Index report for September was released this past week - one week delayed - showing cooler-than-expected consumer price pressures across both the headline and core metrics. Combined with a relatively strong start to corporate earnings season and a planned meeting between President Trump and Chinese President Xi, market volatility metrics eased to one-month lows.

AGNC Investment Corp. (NASDAQ:AGNC ) Q3 2025 Earnings Call October 21, 2025 8:30 AM EDT Company Participants Katherine Turlington - Investor Relations Analyst Peter Federico - President, CEO & Director and Chief Investment Officer Bernice Bell - Executive VP & CFO Conference Call Participants Crispin Love - Piper Sandler & Co., Research Division Terry Ma - Barclays Bank PLC, Research Division Richard Shane - JPMorgan Chase & Co, Research Division Trevor Cranston - Citizens JMP Securities, LLC, Research Division Ameeta Lobo Nelson - UBS Investment Bank, Research Division Kenneth Lee - RBC Capital Markets, Research Division Harsh Hemnani Bose George - Keefe, Bruyette, & Woods, Inc., Research Division Eric Hagen - BTIG, LLC, Research Division Jason Weaver - JonesTrading Institutional Services, LLC, Research Division Presentation Operator Good morning, and welcome to the AGNC Investment Corp. Third Quarter 2025 Shareholder Call. [Operator Instructions] Please note, this event is being recorded.

U.S. equity markets rallied to fresh record-highs this past week as investors leaned into rate cut expectations following a wave of soft employment data and a Federal Government shutdown. For the fourth time since 1995, the federal government entered a partial "shutdown" after the U.S. Senate failed to reach the 60-vote threshold required for passage of appropriations. Defering to experience from prior shutdowns in 2013 (16 days) and in 2018 (35 days), markets largely shrugged off the latest Congressional impasse, with investors still anticipating a timely resolution.

Agency mREITs capitalized on wide mortgage spreads by issuing equity and buying agency-backed mortgages, leading to significant mark-to-market gains as spreads tightened. Dynex and AGNC Investment expanded portfolios via equity issuance, benefiting preferred shareholders through increased equity cushion, though common shares face dilution. AGNCZ, AGNC's new Series H preferred, offers an 8.75% yield and is attractive for income investors; Armour and Two Harbors preferreds also present upside potential.

We take a look at the action in preferreds and baby bonds through the first week of September and highlight some of the key themes we are watching. Preferred stocks delivered strong returns this week, supported by healthy income levels and falling yields, with sector credit spreads remaining tight. AGNC issued a new fixed-rate preferred at 8.75%, offering a higher coupon than NLY.PR.J and appealing to investors seeking fixed-rate exposure.

Banks don't hold the loans they originate on their balance sheet; that would result in severe limitations to their lending. We dive into the history of mortgages and explain how home ownership became accessible for millions of Americans. We discuss preferred securities of popular agency mREITs that pay significant, well-covered dividends.

U.S. equity markets climbed to fresh record highs this week despite a jump in producer prices, but consumer inflation remained "cool enough" to keep the Fed on-course for September rate cuts. Despite the inflation uptick in July, all three major CPI and PPI metrics remained below the annualized levels seen in January preceding the initial wave of tariffs. Ahead of the Chair Powell's "farewell tour" in Jackson Hole, the inevitability of significantly easier monetary policy by mid-2026 - at the latest- has fully taken hold in recent weeks.

We take a look at the action in preferreds and baby bonds through the fourth week of July and highlight some of the key themes we are watching. Preferreds market remained stable with credit spreads at relatively tight levels. Agency mortgage REITs like DX, AGNC, and NLY increased common equity, significantly boosting equity/preferred coverage and making their preferreds especially appealing at ~9.5% yields.