American Capital Agency (NASDAQ:AGNC)

CAPS Rating: 4 out of 5

The company is organized as a real estate investment trust. It uses leverage to invest in single-family residential mortgage pass-through securities and collateralized mortgage obligations that are guaranteed by the U.S. Government.


Player Avatar TMFCop (86.29) Submitted: 3/21/2012 8:34:50 AM : Underperform Start Price: $27.37 AGNC Score: -24.27

Mortgage applications and refis are plummeting. While AGNC and other mREITs may benefit from slower prepayments, they're also losing out on new investment opportunities.Despite all the jawboning about an improving situation and massive intervention in the market by the Fed, housing not recovering at all and is getting worse. That signals a top for residential REITs like AGNC.

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