Overview
- AGNC reported a negative 1.6% economic return for Q1 2026 and a 5.6% drop in tangible net book value to $8.38 per share after spreads on agency mortgage bonds widened late in the quarter.
- Management linked the damage to March turmoil tied to the war in Iran, which pushed investors toward safer assets and increased the gap between mortgage‑bond yields and Treasuries, lowering the value of AGNC’s holdings.
- In response, the company shifted toward lower‑coupon securities and added more interest‑rate swap hedges, ending the quarter with a roughly $95 billion portfolio and a 4.95% weighted average coupon.
- The CFO said tangible net book value recovered about 6% in April, or roughly 5% after the monthly dividend accrual, which partly offset the first‑quarter decline.
- AGNC’s monthly dividend yields about 13%, but the leveraged mortgage strategy can produce sharp swings in results compared with steadier net‑lease REITs like Realty Income that collect long‑term rent.