Annaly Capital Management Inc. (NLY) Buy,…

Annaly Capital Management Inc. (NLY)

22.81

-0.28 (1.19%)

as of Jul 31, 2026, 6:41:06 pm Market Open.

49 watching

COMMENT

They have to play an interest rate spread. Whatever you are doing in these things, be aware that you are only going to get the latest interest rates. They are going to be challenged to keep the mixture that allows them to get the rates.

HOLD

Likes it. The mortgage backed security market is in better shape than it was. The Fed is going to keep rates at near zero. Will continue to get you’re the 12-14% rates of return this year and next.

BUY

They basically own mortgages that have bought off Fannie Mae (FNMA-Q2) and Freddie Mac (FMCC-Q2) and have very good yields. They borrow money at very low costs and then leveraging up and buying mortgages. You have to watch this like a hawk. One thing that is very supportive of this is that interest rates are not going up for 2 years.

COMMENT

A specialized mortgage investment/finance company. They buy good quality mortgages using a spread to leverage and paying that out as a dividend. If you think the US mortgage business is going to continue to chug along, the dividend is probably sustainable. The high dividend is probably a sign that the market is expecting a cut in the dividend.

BUY

Yield is quite high because they employ a tremendous amount of leverage. It is typically anywhere from 5X leverage to10 or 12 times leverage. Currently at about 7X. Mortgages they invest in are all backed by the US government. A very decent place to have some money today. Yield of nearly 14%.

COMMENT

Curious where this sector is going with the Freddie Mac's and Fannie Mae's mortgage REITs and the TWIST program? Federal reserve, instead of doing quantitative easing decided to lend short term and buy long-term to flatten the yield curve. Doesn't necessarily hurt or help this company. Did very well in last year's environment because short-term rates are very low and long-term rates are very high. If you believe the US housing market is going to stabilize (flat line or go up slightly) this company will probably outperform.

DON'T BUY

Invests in mortgages on a leveraged basis. Tends to well in a falling interest rate environment. 15% dividend. Has owned in the past. Not now because lots of talk about trying to force American financing mechanism to the detriment to this company. A very, very well run mortgage REIT. IF you can assess risks, you could own it.

COMMENT

There are some risks you need to be aware of on mortgage REITs. Very levered. If there is a flattening of the yield curve, you will run into problems in the “carry” (?). He is not anticipating any increase in short-term rates in the US for 4 years. Obama administration may want to refinance mortgages but he doesn't think it will happen.

TOP PICK

REIT. Residential mortgages, 14% yield, 7x earnings multiple. ROE of 16%. Mortgages originated in the banks and NLY selectively buys mortgages from the bank. Not all US mortgages are bad. Stock didn’t budge during the recent pull back. Interest rates will be low for a while.

BUY

Great yield. They borrow short and lend long. They buy mortgage-backed securities. They pick up that spread. Stock price does not move much. Risk is that short rates go up in the US. There is a re-investment risk where people pay down their mortgages in the fall. X-Div Jun 28.

COMMENT

Mortgage REIT. Essentially they buy agency residential mortgage backed US securities. You have to watch for any signs of the mortgage market weakening as they work on spreads. Very high risk.

BUY

Larger than all its other competitors combined. When he owns this, he usually sells when it hits $17-$19. At this price you will get about a 14%-15% yield. US housing market is still in dire straits and likely to be so for quite a long period of time.

BUY

Would look to buy it on the X dividend date. Looking for the stock to move sideways But you can pick up the great yield.

BUY

Basically buys mortgages. A risk is if short-term interest rates go up substantially. Also bought mortgages at premiums so the BV of mortgages is higher and people will pay down higher rates first. 15.9% yield.

BUY

Mortgage REIT. Essentially they buy agency residential mortgage backed US securities that are levered 6 times. Last quarter and next quarter will be a little rocky because curve is flattening and spread will tighten. Expect stock price to be flat for the next year or so. 15.5% yield

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Annaly Capital Management Inc. (NLY)