Wunderlich Securities Maintains Buy on American Capital Agency (AGNC)

Wunderlich Securities maintains its Buy rating on American Capital Agency AGNC. In a note to clients, Wunderlich writes, "In the most newsworthy event of the week, American Capital Agency vaulted into third position in terms of market cap among mortgage REITs under our coverage in an oversubscribed offering that followed on the heels of its December offering, adding about $1 billion to its equity base. It seems that, for the moment at least, market participants are embracing the company's active portfolio management style. This raise was, in our opinion, a pivotal one for the company, because on a pro forma basis, we believe the existing dividend could be covered by net spread income, increasing the quality of earnings while allowing the REIT to compound the proceeds of its supplemental income and increase its financial flexibility." AGNC is trading at $29.03, up 0.1% from Friday's close.