Washington Post (05/16/08) P. D8; Heath, Thomas
American Capital Agency made its debut May 15 on the Nasdaq Stock Market, raising $200 million in an initial public offering. The REIT, a newly formed subsidiary of American Capital Strategies, will trade in single-family mortgage securities--an area that has taken a drubbing in recent months by the credit crunch. However, American Capital Agency will trade in Ginnie Mae, Fannie Mae and Freddie Mac mortgage-backed securities, which are considered very safe because they are backed by government-sponsored enterprises or agencies. Justin Cressall, vice president of equity capital markets for American Capital Strategies added: "We are looking to expand our asset management platform. The recent turmoil in the mortgage market has resulted in more favorable pricing for mortgage-backed securities in general."
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