AGNC Investment Corp. (NASDAQ:AGNC) Q3 2023 Earnings Call Transcript

But as the Fed does get, in fact, closer to the pause point and reflect that in the market, then ultimately, I think you would expect us to operate with a lower hedge ratio over time as we want to benefit the portfolio from a decline in short-term rates. But that, I think, is further out. Obviously, that will be something in 2024, where the Fed actually starts to ease. So for now, we like having more of our hedges in the longer part of the curve. We’ll likely do more of that shift. And over time, I think you’ll see our hedge ratio come down. But I wanted to give you that sort of explanation on the key rates because I think it’s important for people to understand what the notional of our portfolio means and what the duration dollar means. I’ll Pause there.

Eric Hagen: That’s really helpful. Thank you, guys. We appreciate you.

Peter Federico: Appreciate it.

Operator: We have now concluded the question-and-answer session. I’d like to turn the call back over to Peter Federico for closing remarks.

Peter Federico: Well, appreciate everybody’s time on the call today, and we look forward to speaking to you again at the end of the fourth quarter. Thank you for participating.

Operator: The conference has now concluded. Thank you for joining the call. You may now disconnect.