A wise friend once told me that beats the return on investment for investing in capital gains. He also used to generate most of their performance through writing, so I do not know what it would last week, but this may have a point when it comes to American Capital Agency (NASDAQ: AGNC).
In an unprecedented move by the Fed to lower interest rates and stimulate the economy, has created a unique atmosphere with a series of economic anomalies. While the owners look at this, still paying 3.5% more on your mortgage. This can be seen in the Bank of New York is charging customers to keep the money instead to pay the gentleman indications of interest, like Donald Trump to buy stocks, companies, and the enormous amount of refinancing enjoy today's rates . What comes after to be intuitive for anyone currently paying a mortgage. This represents a significant difference between 0% the bank pays on deposits and 3.5%, which includes the mortgage.
Many investors are curious why AGNC no longer retains its earnings. The reason is that legally can not, like REITs, so that by law must pay at least 90% of the proceeds to shareholders. Provided that generate large amounts of money, the money will be paid to shareholders.
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