3 Charts That Could Determine AGNC Investment's Future

The mortgage real estate investment trust (REIT) sector has been under a cloud since the spring amid fears that the Federal Reserve will soon begin reducing its purchases of mortgage-backed securities. In a recent speech, Federal Reserve Chairman Jerome Powell said the Fed could begin that pullback this year. We've seen this movie before: During the "taper tantrum" of 2013, mortgage REITs like AGNC Investment (NASDAQ: AGNC) were hit particularly hard. But this time may be different. The following three charts explain why investors probably don't need to fear a repeat.

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AGNC Investment is an agency mortgage REIT, which means it invests almost exclusively in mortgage-backed securities guaranteed by the US Government. As of June 30, AGNC had $56.8 billion of agency mortgage-backed securities in its $58.4 billion investment portfolio. These agency securities are very similar (but not identical) to the types of securities purchased by the Fed.

Source Fool.com