The following is a summary of the AGNC Investment Corp. (AGNC) Q1 2024 Earnings Call Transcript:

Financial Performance:

• AGNC experienced a substantial economic return of 5.7% during Q1 2024, attributed to both a significant dividend and increase in book value.

• The company's comprehensive income equaled $0.48 per share, resulting in a corresponding 5.7% economic return on tangible common equity.

• Around $240 million of common equity was successfully generated through the company's aftermarket offering program, occurring at a considerable price-to-book premium.

• AGNC's leverage slightly increased to 7.1x tangible equity at the end of Q1, up from the 7x recorded in Q4.

• Net spread and dollar roll income remained strong for the quarter, reaching $0.58 per share.

Business Progress:

• Amidst advances in monetary policy and robust economic data results, there is uncertainty in the timing as well as the scale of future rate cuts.

• The interest rate environment remained largely positive as interest rates gradually increased across the yield curve.

• The company anticipates that despite market turbulence due to evolving monetary policy, the investment dynamics within the company will evolve positively over time.

• Agency MBS and unencumbered Cash remained strong, standing at $5.4 billion or 67% of the company's tangible equity, by the end of the quarter.

• A covariance of the company's hedge ratio and a slightly positive duration gap was evident.

• The company leveraged new capital to purchase mortgages instantly from its at the market program, avoiding any drag from a dividend perspective.

• In response to a shifting environment, AGNC shows flexibility in capital deployment and leverage.

• The firm anticipates increasing capital expenditures and is contemplating optimization within its capital structure to deliver more shareholder value.

• AGNC is also considering replacements for old swaps that are rolling off with new swaps that entail a positive carry.

More details: AGNC Investment Corp IR

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