High-Yield Investments: AGNC and Buffett's Bargains

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Source: Seeking Alpha
High-Yield Investments: AGNC and Buffett's Bargains
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TL;DR Summary

AGNC Investment Corp (NASDAQ: AGNC) is a mortgage real estate investment trust (REIT) that specializes in investing in agency mortgage-backed securities (MBS). These MBS are guaranteed by agencies like Fannie Mae or Freddie Mac, which eliminates credit risk. While the prices of these MBS can fluctuate, AGNC offers a high yield of 14.8% and is well-positioned to benefit from increased investor demand during a recession. Despite recent declines in MBS prices, AGNC's book value is not permanently lost capital, and the potential for MBS prices to recover presents upside potential for the company. AGNC provides investors with a diversified portfolio of mortgages, allowing them to earn a steady and reliable income stream through dividends.

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