AG Mortgage Investment Trust Inc was incorporated in Maryland on March 1, 2011, and commenced operations in July 2011 when it successfully completed its initial public offering. The Company is engaged ininvesting in, acquiring and managing a diversified portfolio of residential mortgage assets, other real estate-related securities and financial assets. It conducts its operations to qualify and be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes. The majority of its portfolio is comprised of mortgage-backed securities, specifically residential mortgage-backed securities, or RMBS. Its portfolio also includes a significant portion of RMBS that are not issued or guaranteed by Ginnie Mae or a GSE, which it refers to as Non-Agency RMBS. Its Non-Agency RMBS investments may include investment grade and non-investment grade fixed- and floating-rate securities. It categorizes its Non-Agency RMBS by credit score at origination into Prime, Alt-A and Subprime. Its RMBS Interest Only securities (Non-Agency RMBS backed by interest-only strips), CRTs, RPL/NPL MBS, and Securitized Whole Loans represent its Non-Agency RMBS not categorized by credit score at origination. Credit Risk Transfer securities (CRTs) are unguaranteed and unsecured mezzanine, junior mezzanine and first loss securities issued by Fannie Mae and Freddie Mac to decrease their exposure to mortgage default risk. RPL/NPL MBS are mortgage-backed securities collateralized by re-performing mortgage loans (RPL) or non-performing mortgage loans (NPL). Securitized Whole Loans are residential mortgage loans (generally RPLs or NPLs) in securitized form that it purchases from a related party or parties. The Company also invested in other target assets, including asset backed securities, or ABS, and commercial mortgage-backed securities, or CMBS. Its CMBS portfolio includes CMBS interest only securities (CMBS backed by interest-only strips) and Freddie Mac K-Series CMBS. Freddie Mac K-Series CMBS (K-Series CMBS) includes CMBS, CMBS interest only and CMBS principal only securities which are regularly-issued structured pass-through securities backed by multifamily mortgage loans. K-Series CMBS feature investor options which include guaranteed senior and interest only bonds as well as unguaranteed mezzanine, subordinate and interest only bonds which are issued by Freddie Mac. It has also invested in residential and commercial mortgage loans, including RPLs and NPLs, as well as excess mortgage servicing rights (MSRs). The Company competes with other REITs, specialty finance companies, mortgage bankers, insurance companies, mutual funds, institutional investors, investment banking firms, financial institutions, governmental bodies, and other entities.
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