AGNC Investment Q2 Earnings Preview: Favoring Yield Capture On Commons Over Buying Preferreds

  • AGNC Investment Corp. currently yields above 15%. While likely not sustainable in the longer term, a yield capture opportunity seems on the cards. A July 21st earnings release could have a material impact. Combining AGNC's WALA, 30-year mortgage rates, 10-year yields, and the MOVE index suggests a commendable Q2 report might surface. The mREIT's preferred shares, especially C, E, and F convey sound yields. However, they are priced above their liquidation values, have reset options, and yield lower than the commons.