- AGNC Investment (AGNC) stock slid 5.6% in Tuesday trading as bond prices fell across the globe in response to monetary policy tightening at many central banks.
- As bond prices fall, their yields rise. A similar dynamic had hurt AGNC's Q2 results. "The expectation of materially higher short-term rates drove significant interest rate volatility and increased the probability of a recession," AGNC (AGNC) President and CEO Peter Federico said said in July.
- Such volatility widens the spread between mortgage-backed securities, which AGNC invests in, and Treasury securities.
- SA contributor ADS Analytics assesses the value of AGNC's new preferred shares (AGNCL).