3 Top Financial Stocks to Buy in May

As a general rule, recessions are a bad time to be invested in the financials sector. Ideally, you'd like to wait till the recovery has started and all the asset writedowns and dividend cuts are over. So how should a long-term investor wait out the worst during the coronavirus pandemic? Here are three stocks with limited credit risk, which is what you want to avoid at this part of the cycle.

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AGNC Investment Corp. (NASDAQ: AGNC) is a mortgage real estate investment trust (mREIT) that specializes in mortgage-backed securities guaranteed by the U.S. government. Like every other mortgage REIT over the past couple months, AGNC has taken its lumps as margin calls have forced it to deleverage. But while mortgage forbearance is going to be a headache for the banks and those who own servicing, forbearance actually works to AGNC's benefit, as it reduces prepayment risk going forward.

Source Fool.com