Profile: American Capital Agency Corp (AGNCP.OQ)
29 Jul 2016
American Capital Agency Corp., incorporated on January 7, 2008, is a real estate investment trust (REIT). The Company primarily invests on a leveraged basis in agency mortgage-backed securities (agency MBS). The Company's investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). The Company also focuses on investing in other assets related to agency securities and approximately 10% of its assets in AAA non-agency and commercial mortgage-backed securities (collectively, AAA non-agency MBS). The Company is externally managed by American Capital AGNC Management, LLC, an affiliate of American Capital, Ltd.
Agency Mortgage-Backed Securities
The agency MBS in which the Company invests consists of agency residential pass-through certificates and collateralized mortgage obligations. 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, with each class having specified characteristics, including stated maturity dates, weighted average lives and rules governing principal and interest distribution. The agency MBS that the Company acquires provide funds for mortgage loans made to residential homeowners. The agency MBS securities represent interests in pools of mortgage loans made by mortgage bankers, commercial banks, savings and loan institutions, and other mortgage lenders. The pools of mortgage loans are assembled for sale to investors, such as by various government-related or private organizations. The Company's Agency MBS are collateralized by pools of either fixed-rate mortgage loans, adjustable-rate mortgage loans (ARMs) or hybrid ARMs. The Company makes investments in Fannie Mae and the Freddie Mac agency MBS.
Non-Agency Mortgage-Backed Securities
Non-agency mortgage investments in which the Company focuses to invest consist of investment grade, AAA rated MBS backed by residential or commercial mortgages, for which the payment of principal and interest is not guaranteed by a GSE or government agency. Instead, a private institution, such as a commercial bank will package residential or commercial mortgage loans and securitize them through the issuance of MBS. Non-agency MBS backed by residential loans are often referred to as private label MBS and MBS backed by commercial loans as commercial MBS (CMBS).
The Company competes with American Capital Mortgage Investment Corp.
American Capital Agency Corp
2 Bethesda Metro Ctr Fl 14
BETHESDA MD 20814-6319