ACAS launches new Preferred at AGNC

Thanks to more clever management at ACAS, AGNC now has a preferred issue. Recalling that ACAS' fee is based on funds under management, the managers are unconcerned whether equity is raised in common or preferred issues. The $150m preferred issue will yield ACAS another $156,250 per month in management fees atop those already paid by AGNC, plus fees on the equity reinvested from income made on the issue.

And as described at Seeking Alpha ("Understanding American Capital Agency's New Preferred Issue"), there will definitely be something to reinvest after paying the preferred shareholders their 8% on the $25/sh in equity in each stub of preferred.