Proven Long-Term Performance
Exceptional Track Record Across Market Cycles
Broad Market Outperformance
AGNC has delivered a remarkable track record of stockholder returns since inception – driven in part by an attractive dividend yield component – and has outperformed comparable indices and other yield-oriented alternatives.
Tangible Diversification Benefits
With a portfolio comprised of Agency-backed fixed income investments, AGNC differs materially from other equity sectors, which provides tangible diversification benefits and makes AGNC a favorable addition to an investor’s portfolio.
Superior Risk-Adjusted Returns
Since our IPO, AGNC has outperformed other levered and unlevered Agency MBS-focused models on an economic return basis – a measure that tracks investment portfolio performance – thus reinforcing the benefits of being a long-term investor in AGNC.
Since AGNC’s inception in 2008, our team has navigated a myriad of market cycles and exogeneous events that have driven numerous periods of significant market volatility.
- Great Financial Crisis of 2008
- Significant Federal Reserve intervention
- Conservatorship of the GSEs
- Global COVID-19 Pandemic
- Unprecedented fiscal and monetary policy intervention
- Historic inflationary pressures and supply chain disruptions
- Extreme interest rate volatility
- Worst year on record for primary fixed income products in multiple decades
Despite these periods of macroeconomic instability, AGNC has proven resilient over the long-term, highlighting the importance and effectiveness of our risk management strategies and the durability of our Agency-focused business model.
Case Study: Resilience During the Great Financial Crisis
Years of high-risk mortgage lending and securities issuance practices led to the bursting of the U.S. housing bubble, threatening the entire U.S. economy and sparking the Great Financial Crisis of 2008. Millions of Americans lost their jobs and defaulted on their mortgage payments in record numbers, while governments around the world bailed out large financial institutions to prevent a complete collapse of the global financial system.
AGNC went public in May 2008, which proved to be a pivotal entry point for our specialized Agency MBS strategy. As financial conditions deteriorated, the federal government made clear its intention to back Agency MBS by providing financial support to Fannie Mae and Freddie Mac as they entered a period of conservatorship that continues to this day. This explicit support insulated Agency-focused investors from record homeowner defaults. Investors in riskier non-Agency mortgage assets, on the other hand, suffered major losses – many were unable to recover and declared bankruptcy.
Case Study: Stabilized Returns Following COVID-19 Market Panic
As markets reacted to the unprecedented COVID-19 pandemic in early 2020, asset valuations and liquidity precipitously declined over a compressed period in March, in turn causing financial services and mortgage REIT stocks to experience a sharp downturn. AGNC’s management team took significant actions to manage risk, maintain leverage and liquidity, and preserve our high-quality portfolio, ultimately generating a positive economic return for the year and significantly outperforming our competitors despite the significant market disruption.