The deal for American Capital Agency (AGNC +0.6%) to internalize management closed on July 1, and AGNC now provides management to American Capital Mortgage (MTGE +0.9%), giving it a stream of management income.

Annual run-rate operating costs should be below 0.9% of shareholder equity - or below 0.75% if adding in the management fee from MTGE.

This would be the lowest cost structure of any mortgage REIT, and well below the average of 2.91% (measured against shareholder equity).

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