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SEC Filings

10-K
AGNC INVESTMENT CORP. filed this Form 10-K on 02/27/2013
Entire Document
 


 
Fair Value Hierarchy
 
Level 1
 
Level 2
 
Level 3
December 31, 2012
 
 
 
 
 
Assets:
 
 
 
 
 
Agency securities
$

 
$
85,245

 
$

Interest rate swaps

 
14

 

Payer swaptions

 
171

 

Other derivative instruments

 
116

 

Total
$

 
$
85,546

 
$

Liabilities:
 
 
 
 
 
Debt of consolidated VIEs
$

 
$
937

 
$

Obligation to return U.S. Treasury securities borrowed under reverse repurchase agreements
11,763

 

 

Interest rate swaps

 
1,243

 

Other derivative instruments

 
21

 

Total
$
11,763


$
2,201


$

 
 
 
 
 
 
December 31, 2011
 
 
 
 
 
Assets:
 
 
 
 
 
Agency securities
$

 
$
54,683

 
$

U.S. Treasury securities
101

 

 

Interest rate swaps

 
13

 

Other derivative instruments

 
69

 

Total
$
101

 
$
54,765

 
$

Liabilities:
 
 
 
 
 
Debt of consolidated VIEs (1)
$

 
$
54

 
$

Obligation to return U.S. Treasury securities borrowed under reverse repurchase agreements
899

 

 

U.S. Treasury futures
14

 

 

Interest rate swaps

 
795

 

Other derivative instruments

 
44

 

Total
$
913


$
893

 
$

_______________________
1.
This amount is recorded at cost basis which closely approximates its fair value.
Note 7. Management Agreement and Related Party Transactions  
We are externally managed and advised by our Manager pursuant to the terms of a management agreement. The management agreement has been renewed through May 20, 2013 and provides for automatic one-year extension options thereafter. The management agreement may only be terminated by either us or our Manager without cause, as defined in the management agreement, after the completion of the current renewal term, or the expiration of each subsequent automatic annual renewal term, provided that either party provide 180-days prior written notice of non-renewal of the management agreement. If we were to not renew the management agreement without cause, we must pay a termination fee on the last day of the applicable term, equal to three times the average annual management fee earned by our Manager during the prior 24-month period immediately preceding the most recently completed month prior to the effective date of termination. We may only not renew the management agreement with or without cause with the consent of the majority of our independent directors. We pay our Manager a base management fee payable monthly in arrears in amount equal to one twelfth of 1.25% of our Equity. Our Equity is defined as our month-end stockholders' equity, adjusted to exclude the effect of any unrealized gains or losses included in either retained earnings or OCI, each as computed in accordance with GAAP. There is no incentive compensation payable to our Manager pursuant to the management agreement. For fiscal years 2012, 2011 and 2010, we recorded an expense for management fees of $113 million, $55 million and $11 million, respectively.  

89


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