The second quarter got off to a rocky start following the Trump administration’s “Liberation Day” tariff announcement in early April. Stocks and other financial assets initially tumbled due to increased uncertainty about how tariffs might impact the economy. However, most financial assets recovered throughout the quarter as the administration ultimately delayed its tariff plan.
Agency mortgage-backed securities (MBSes) — residential mortgage pools protected against default risk by government agencies like Fannie Mae — were the exception as they underperformed. While this negatively impacted AGNC Investment‘s (NASDAQ: AGNC) results, it did not alter the company’s outlook on its 15%-yielding monthly dividend.
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