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SEC Filings

10-K
AGNC INVESTMENT CORP. filed this Form 10-K on 02/23/2016
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Gain (Loss) on Derivative Instruments and Other Securities, Net  
The following table is a summary of our gain (loss) on derivative instruments and other securities, net for fiscal years 2014 and 2013 (in millions):
 
Fiscal Year
 
2014
 
2013
Periodic interest costs of interest rate swaps, net 1
$
(330
)
 
$
(424
)
Realized gain on derivative instruments and other securities, net:
 
 
 
TBA securities - dollar roll income, net
505

 
320

TBA securities - mark-to-market net gain/(loss)
416

 
(946
)
Payer swaptions
(171
)
 
233

Receiver swaptions
(1
)
 

U.S. Treasury securities - long position
7

 
13

U.S. Treasury securities - short position
(378
)
 
412

U.S. Treasury futures - short position
(34
)
 
9

Interest rate swap termination fees
(127
)
 
29

REIT equity securities
71

 
5

Other
(10
)
 
(6
)
Total realized gain on derivative instruments and other securities, net
278

 
69

Unrealized (loss) gain on derivative instruments and other securities, net: 2
 
 
 
TBA securities - mark-to-market net gain/(loss)
196

 
(100
)
Interest rate swaps
(1,381
)
 
1,540

Payer swaptions
(22
)
 
25

Receiver swaptions
12

 

Interest and principal-only strips
32

 

U.S. Treasury securities - long position
59

 
(55
)
U.S. Treasury securities - short position
(42
)
 
60

U.S. Treasury futures - short position
(42
)
 
40

Debt of consolidated VIEs
(10
)
 
39

REIT equity securities
4

 
(3
)
Other
3

 

Total unrealized (loss) gain on derivative instruments and other securities, net
(1,191
)
 
1,546

Total (loss) gain on derivative instruments and other securities, net
$
(1,243
)
 
$
1,191

_______________________
1.
Please refer to Interest Expense and Cost of Funds discussion above for additional information regarding other periodic interest costs of interest rate swaps, net.
2.
Unrealized gain (loss) from derivative instruments and other securities, net includes reversals of prior period amounts for settled, terminated or expired derivative instruments and other securities.
For further details regarding our use of derivative instruments and related activity refer to Notes 2 and 5 of our Consolidated Financial Statements in this Annual Report on Form 10-K.

Management Fees and General and Administrative Expenses
We incurred management fees of $119 million and $136 million for fiscal years 2014 and 2013, respectively. The decline in our management fees was a function of our smaller capital base due to the combination of share repurchases and net realized losses on our portfolio during the second half of fiscal year 2013.
General and administrative expenses were $22 million and $32 million for fiscal years 2014 and 2013, respectively. Our general and administrative expenses for such periods primarily consisted of prime broker fees, information technology costs, accounting fees, legal fees, Board of Director fees, insurance expense and general overhead expense. The decline in our general and administrative expenses was largely due to a smaller average portfolio size.
Our total operating expense as a percentage of our average stockholders' equity was 1.52% and 1.61% as of December 31, 2014 and 2013, respectively.

61


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