AGNC hires two investment executives from the failed Freddie Mac and Bear Stearns.

The executives at American Capital Agency Corp. know that interest rates are going to skyrocket in the not so distant future.  So they have hired some ex-Freddie Mac executives to help them game the system until it can no longer be gamed.  There is nothing wrong with that.  Caveat emptor "buyer beware".  I would not be proud to hire people at the failed Freddie Mac or Bear, Stearns & Co.  I wish them success, but I know that AGNC and its high dividend stock buddies in the mortgage REIT sector are a house of leveraged cards that will crumble at the beginnings of an inverted interest rate curve.
 
Why not hire some guys from Enron's risk management department?  How could they do any worse than Freddie Mac and Bear Stearns.  Hiring collosal risk management failures is just plain stupid.  I would avoid AGNC just for their hiring practices.
 
Here are the links to the wikipedia entries for Freddie Mac and Bear Stearns if you can stomach the financial insanity of these dead corporations:
 
 
BETHESDA, Md., May 16, 2011 /PRNewswire/ — American Capital Agency Management, LLC, the external manager of American Capital Agency Corp. (Nasdaq: AGNC), announced today that Peter J. Federico and M. Song Jo are joining the company.
 
Mr. Federico will join as Senior Vice President and Chief Risk Officer and will be responsible for overseeing all risk management activities relating to AGNC.  Mr. Federico was previously Executive Vice President and Treasurer of Freddie Mac, primarily responsible for managing that company's investment activities for its retained portfolio and developing, implementing and managing risk mitigation strategies.  He was also responsible for managing Freddie Mac's $1.2 trillion interest rate derivative portfolio and short and long-term debt issuance programs.  Mr. Federico previously served in several other capacities at Freddie Mac, including Senior Vice President, Asset & Liability Management.  Mr. Federico joined Freddie Mac in 1988.
 
Mr. Jo joined American Capital Agency Management as Vice President, Mortgage Structuring.  He previously served as Vice President, Mortgage Structuring, Investment & Capital Markets at Freddie Mac, where he was primarily responsible for managing mortgage structuring activities, including creating, managing and trading structured activities to enhance that entity's risk, return and liquidity profile.  Mr. Jo served Freddie Mac in various other capacities from 1997 to 2010.  He previously worked at Alex. Brown & Sons and Bear, Stearns & Co. Inc.
 
"We are excited about expanding our investment team with seasoned professionals," commented Gary Kain, President, American Capital Agency Management, LLC.  "Peter and Song both have extensive experience in investing, trading and managing risk associated with mortgage-backed securities.  Prior to joining us, Peter spent most of his 20 year career involved in the management of one of the largest interest rate derivative portfolios in the world.  We believe that his extensive experience in asset/liability management will further our efforts to generate attractive risk adjusted returns for American Capital Agency Corp. over a wide range of economic environments and interest rate scenarios," he added.
 
"In addition, Song's experience analyzing and executing Agency REMIC transactions at Freddie Mac will significantly enhance our ability to use mortgage structuring to supplement American Capital Agency Corp.'s returns and develop alternative funding strategies," Mr. Kain continued.  "We continue to build the strongest possible investment team with the necessary skills and industry experience to help us enable American Capital Agency Corp. to capitalize on the wealth of opportunities within the agency mortgage market, while appropriately managing risk."
 
 
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Published in: on May 16, 2011 at 10:38 pm  Leave a Comment  

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