Agnc Investment . 8.75% Series H Fixed-rate Cumulative Redeemable Preferred Stock Stock Earnings Reports

AGNC reported a strong Q2 2026 performance despite a challenging macro backdrop driven by geopolitical tensions (U.S.–Iran) and shifting Fed policy expectations. Key investor takeaways: AGNC generated a 6.7% economic return on tangible common equity for the quarter, driven by a $0.36 dividend and a $0.20 increase in tangible book value; the company paid its 75th consecutive monthly dividend of $0.12 per share. Agency MBS outperformed treasuries for the fifth consecutive quarter, helped by materially lower net new supply (mortgage rates >6.5% reducing issuance), slower prepayments, and continued strong demand from bond fund inflows, banks, foreign investors and REITs. AGNC’s portfolio moves included purchases of intermediate coupon specified pools, raising the portfolio coupon to 5.04% and increasing the share of assets with favorable prepayment characteristics to 79%. Hedge notional was $66 billion with 66% swap-based hedges and a duration gap of +0.7 years; leverage remained steady at 7.4x tangible equity. Capital activity was opportunistic: $167 million of common equity issued via ATM at premiums to tangible book, while ending the quarter with $7.5 billion of unencumbered cash and Agency MBS (~62% of tangible equity). Risks noted: elevated geopolitical risk, monetary policy uncertainty (Fed messaging, potential for hikes), curve flattening and market volatility, and potential variability in GSE purchase activity. Management views sector technicals as favorable longer-term, believes agency spreads are wide by historical standards (relative to corporates), and expects attractive risk-adjusted returns on new investments (estimated ROEs ~15–17% at current spread levels when leveraging at ~7–7.5x).