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Update: American Capital - Portfolio Positioning Stays Favorable

I continue to remain bullish on American Capital Agency (NASDAQ:AGNC); the company has high exposure to high yield and long duration assets, which is the correct strategy in the given interest rate environment. I reiterate my viewpoint that the Fed will not increase interest rates in mid-2015 because of slacks in the labor market and weak global economic conditions. The company's performance in coming quarters will be supported by its high exposure to long duration assets and reduction in hedges. Also, if the company adds non-agency and MSR exposure to its portfolio, stock valuation will be positively…