Top Shipping Stocks For 2015

Top Shipping Stocks For 2015: American Capital Agency Corp (AGNC)

American Capital Agency Corp. (AGNC) is a real estate investment trust (REIT). The Company earns income primarily from investing on a leveraged basis in agency mortgage-backed securities. These investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by government-sponsored entities, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by a United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). It may also invest in agency debenture securities issued by Freddie Mac, Fannie Mae or the Federal Home Loan Bank (FHLB). The Company is managed by American Capital AGNC Management, LLC, which is an affiliate of American Capital, Ltd.

AGNC funds its investments primarily through short-term borrowings structured as repurchase agreements. The agency mortgage-backed securities in which the Company invests consist of agency residential pass-through certificates and CMOs. Agency residential pass-through certificates are securities representing interests in pools of mortgage loans secured by residential real property. Agency CMOs are securities that are structured instruments representing interests in agency residential pass-through certificates. Agency CMOs consist of multiple classes of securities.

Advisors' Opinion:

• [By Amanda Alix]

  Not surprisingly, both trusts saw their stock price rise yesterday, but so did American Capital Agency (NASDAQ: AGNC  ) and American Capital Mortgage (NASDAQ: MTGE  ) -- despite a dividend trim announcement from both companies. Both of the mREITs under CIO Gary Kain's supervision, which have been known for their high payouts, declared dividend cuts of 16% and 11%, consecutively. Still, bo! th ended the day in the green, despite investors' knowledge that huge dividend payments might be a thing of the past.

• [By Sean Williams]

  There's certainly no way of sugarcoating the fact that the recent jump in interest rates is going to further tighten the net interest margin of mortgage REITs like Annaly Capital Management and American Capital Agency (NASDAQ: AGNC  ) . As rates rise, Annaly and American Capital's borrowing costs will rise making it more difficult to turn sizable profits.

• [By Alex Dumortier, CFA]

  mREITs: Excess returns or dividend bubble?
  I've been warning investors about the risks associated with mortgage REITs (mREITs) such as Annaly Capital Management (NYSE: NLY  ) and American Capital Agency (NASDAQ: AGNC  ) for more than a year and a half. Finally, regulators are waking up to the the potential problem these companies pose. Last Friday, The Wall Street Journal reported that the Financial Stability Oversight Council mREITs could finger mREITS as an area of vulnerability in financial markets in its annual report.

• [By Amanda Alix]

  This development will likely give battered mREITs like Annaly Capital (NYSE: NLY  ) , Armour Residential (NYSE: ARR  ) , and American Capital Agency (NASDAQ: AGNC  ) a huge boost as investors begin to feel less panic regarding a tapering of the current QE3 program. Markets have responded to the Summers announcement by soaring skyward, apparently feeling relief and confidence about the fate of the taper.

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-shipping-stocks-for-2015-2.html