American Capital Agency Corp. (AGNC) is a real estate investment trust (REIT). The Company’s principal objective is to preserve its net book value (also referred to as net asset value, NAV and stockholders' equity) while generating attractive risk-adjusted returns for distribution to its stockholders through regular quarterly dividends from the combination of the Company’s net interest income and net realized gains and losses on investments and hedging activities. The Company is managed by American Capital AGNC Management, LLC, which is an affiliate of American Capital, Ltd. AGNC funds its investments primarily through short-term borrowings structured as repurchase agreements. The Company earns income primarily from investing on a leveraged basis in agency mortgage-backed securities. These investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs).