Perspectives

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    The Earnings Extract: Q2 2026

    • The investment environment in the second quarter continued to be challenging against the backdrop of persistent geopolitical volatility. Elevated energy prices and supply chain disruptions were the dominant macroeconomic concerns, particularly in April and May when traffic through the Strait of Hormuz was severely constrained. These concerns caused Treasury yields to increase, the yield curve to flatten, and the market’s monetary policy expectations to pivot from rate cuts to rate hikes.
    • Despite the volatile macroeconomic backdrop, AGNC delivered a strong economic return of 6.7% for the second quarter, comprised of $0.36 of dividends per common share and a $0.20 increase in tangible net book value per common share. Notably, AGNC’s June 2026 common stock dividend marked the 75th consecutive monthly dividend payment of $0.12 per common share, a track record of performance that illustrates the value of AGNC’s disciplined approach to risk management and portfolio construction over a wide range of investment environments.
    • During the quarter, elevated mortgage rates caused a reduction in projected Agency MBS supply, while demand remained strong, creating a positive technical backdrop that supported Agency MBS performance and drove spreads to benchmark rates tighter. Although mortgage spreads have declined from recent peak levels, they remain elevated by historical standards. Agency MBS also offer compelling value relative to other fixed income alternatives, particularly corporate bonds, which are at or near historically tight spreads to U.S. Treasuries despite record issuance and rising credit concerns. Together, these favorable dynamics should be supportive of Agency MBS performance over the near to intermediate term.
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    Monthly Macro Monitor: November 2025

    A quick update on the market environment, including key rate and spread trends that are top of mind for Agency MBS investors.

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    Monthly Macro Monitor: October 2025

    A quick update on the market environment, including key rate and spread trends that are top of mind for Agency MBS investors.

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    The Fed Report: October 2025

    Key highlights from the October 2025 FOMC policy update along with our insights and takeaways.

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    The Earnings Extract: Q3 2025

    Commentary from our quarterly earnings call covering the macroeconomic landscape, the Agency MBS market environment, and our quarterly performance.

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    Monthly Macro Monitor: September 2025

    A quick update on the market environment, including key rate and spread trends that are top of mind for Agency MBS investors.

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    The Fed Report: September 2025

    Key highlights from the September 2025 FOMC policy update along with our insights and takeaways.

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    Monthly Macro Monitor: August 2025

    A quick update on the market environment, including key rate and spread trends that are top of mind for Agency MBS investors.

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    Monthly Macro Monitor: July 2025

    A quick update on the market environment, including key rate and spread trends that are top of mind for Agency MBS investors.

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    The Fed Report: July 2025

    Key highlights from the July 2025 FOMC policy update along with our insights and takeaways.

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