Stock price when the opinion was issued
A mortgage REIT. They leverage the slope of the yield curve, to invest in mortgages. Rising rates are not necessarily a good thing for them. It really all revolves around their ability to leverage the spread in the yield curve. There is also some reinvestment risk. If existing pools of mortgages are maturing at higher rates than what you can invest in, that impairs profitability.
It is a mortgage REIT making money by borrowing on the short end of the curve and lending on the long end. The portfolio is much larger than the capital they have to play with, so there is volatility. If rates go up next year it creates refinancing risk for them. He is not comfortable with the leverage in the portfolio.
Founded in 1997 as a real estate investment trust (reit), annaly is a leading mortgage reit listed on the new york stock exchange (nyse: nly). annaly's principal business objective is to generate net income for distribution to shareholders through the prudent selection and management of our investments. since inception, annaly has paid over $13 billion in dividends to shareholders. Social media mentions are up 300% in the past 24h.