AGNC Investment Corp.

Overview

AGNC Investment Corp. is a real estate investment trust (REIT) that provides private capital to the U.S. housing market. The firm invests primarily in Agency residential mortgage-backed securities (Agency RMBS) on a leveraged basis and finances those investments largely through collateralized borrowings (repo). AGNC is internally managed, targets attractive long-term stockholder returns with a strong yield component, and is structured to remain exempt from the Investment Company Act of 1940.

Stock and corporate information

• Common stock: Nasdaq Global Select Market — ticker AGNC
• Organized: January 7, 2008; commenced operations May 20, 2008 after an initial public offering
• Employees: 54 full-time employees (as of December 31, 2025)
• Structure and governance: qualifies as a REIT for U.S. federal income tax purposes and relies on the 3(c)(5)(C) exemption from the Investment Company Act to maintain leverage flexibility; governed by internal guidelines to preserve REIT status and exemption

How AGNC generates returns

• Primary revenue: interest income on investments, net of borrowing and hedging costs, plus net realized gains and losses on investment and hedging activities
• Dividend policy: intends to distribute taxable income to meet REIT requirements (generally at least 90%); dividends are paid monthly at management’s discretion based on earnings, liquidity, and regulatory requirements

Investment strategy and target assets

• Core focus: Agency RMBS, including pass-through securities and collateralized mortgage obligations (CMOs) guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae
• Related positions: To-Be-Announced (TBA) forward contracts to purchase or sell Agency RMBS; Agency multifamily MBS (including Fannie Mae DUS program with lender risk-sharing)
• Non-Agency and other holdings: credit risk transfer (CRT) securities; non-Agency RMBS across credit spectrums; commercial mortgage-backed securities (CMBS)
• Leverage and funding: typical leverage range of approximately 6x to 10x tangible stockholders’ equity, funded primarily through short-term repurchase agreements; diversification of funding counterparties

Financing, hedging and risk management

• Financing techniques: collateralized repo transactions, TBA dollar rolls (off‑balance sheet financing), and use of a captive broker-dealer for tri‑party repo and central clearing access
• Hedging: interest rate hedges (swaps and other derivatives) to manage interest rate and funding risks; hedges are adjusted continuously in response to market conditions and do not eliminate all risks, particularly spread risk
• Key risks: interest rate risk, prepayment and extension risk, spread and credit risk, potential margin calls and liquidity pressures, counterparty failure risk, and changing regulatory margin or central clearing requirements
• Off-balance sheet considerations: TBA dollar rolls can affect leverage and liquidity; if rolling becomes uneconomical, transactions may settle in cash or result in delivery of the "cheapest to deliver" securities

Regulatory, tax and structural considerations

• REIT requirements: must satisfy asset and income tests (including the 75% asset test and 75% gross income test) and the distribution requirements (generally 90%) to maintain REIT tax treatment
• Investment Company Act exemption: compliance with thresholds such as 55% and 80% asset tests is considered in maintaining the 3(c)(5)(C) exemption; structures may include taxable REIT subsidiaries to optimize tax positions
• Potential tax outcomes: penalties or excise taxes for failing REIT tests and the possibility of corporate taxation if REIT status is lost
• Policy and regulatory environment: changes in housing finance policy, GSE conservatorship status, or Agency RMBS market liquidity and funding rules could affect funding costs and asset pricing

People, culture and governance

• Workforce: 54 full-time employees (as of December 31, 2025)
• Diversity: 39% women; 31% ethnically diverse
• Recognition: recertified as a Great Place to Work in 2023; named by Fortune in 2024 as one of the Best Small Workplaces
• Cybersecurity and oversight: risk management program aligned with the NIST Cybersecurity Framework, ongoing third-party risk assessments, and governance and reporting through the Audit Committee

Market context and current positioning

• Agency RMBS market size: approximately $9 trillion (market reference)
• Federal Reserve holdings of Agency RMBS: about $2.1 trillion as of December 31, 2025
• Strategy emphasis: active, dynamic management of investments and hedges to address volatility, liquidity conditions, and regulatory developments, including potential changes to GSE status and housing finance policy

Subsidiary role

• Bethesda Securities, LLC (BES): a wholly owned broker‑dealer subsidiary that provides access to tri‑party repo, GCF repo via FICC, and central clearing for TBAs; operations depend on compliance with FINRA/FICC requirements