Profile: American Capital Agency Corp (AGNC.O)
American Capital Agency Corp. (AGNC), incorporated on January 7, 2008, is a real estate investment trust (REIT). The Company’s principal objective is to preserve its net book value (also referred to as net asset value, NAV and stockholders' equity) while generating attractive risk-adjusted returns for distribution to its stockholders through regular quarterly dividends from the combination of the Company’s net interest income and net realized gains and losses on investments and hedging activities. The Company is managed by American Capital AGNC Management, LLC, which is an affiliate of American Capital, Ltd. AGNC funds its investments primarily through short-term borrowings structured as repurchase agreements.
The Company earns income primarily from investing on a leveraged basis in agency mortgage-backed securities. These investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by government-sponsored entities, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by a United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). It may also invest in agency debenture securities issued by Freddie Mac, Fannie Mae or the Federal Home Loan Bank (FHLB). The agency mortgage-backed securities in which the Company invests consist of agency residential pass-through certificates and CMOs. Agency residential pass-through certificates are securities representing interests in pools of mortgage loans secured by residential real property. Agency CMOs are securities that are structured instruments representing interests in agency residential pass-through certificates. Agency CMOs consist of multiple classes of securities.
Agency residential pass-through certificates are securities representing interests in pools of mortgage loans secured by residential real property where payments of both interest and principal, on the securities are guaranteed by a GSE, and made monthly to holders of the securities, in effect passing through monthly payments made by the individual borrowers on the mortgage loans that underlie the securities, net of fees paid to the issuer/guarantor and servicers of the securities. Agency CMOs are securities that are structured instruments representing interests in agency residential pass-through certificates. Agency CMOs comprises multiple classes of securities, with each class having specified characteristics, including stated maturity dates, weighted average lives and rules governing principal and interest distribution. Monthly payments of interest and principal, including prepayments, are typically returned to different classes based on rules described in the trust documents. Principal and interest payments may also be divided between holders of different securities in the agency CMO and some securities may only receive interest payments while others receive only principal payments.
American Capital Agency Corp
2 Bethesda Metro Ctr Fl 14
BETHESDA MD 20814-6319