Annaly Capital Management Inc.

NLY-N

NYSE:NLY

7.28
0.14 (1.96%)
Annaly Capital Management is one of the largest mortgage real estate investment trusts. The company borrows money, primarily via short term repurchase agreements, and reinvests the proceeds in asset-backed securities.
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Analysis and Opinions about NLY-N

Signal
Opinion
Expert
SPECULATIVE BUY
SPECULATIVE BUY
June 12, 2020

Dividend dropped 12%? He has not looked at this one for a few years. It is a rolling of US mortgages and real estate instruments and comes with a high yield. He has never found these types of products to make money for investors. You may not want this long term -- perhaps for a short term trade.

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Dividend dropped 12%? He has not looked at this one for a few years. It is a rolling of US mortgages and real estate instruments and comes with a high yield. He has never found these types of products to make money for investors. You may not want this long term -- perhaps for a short term trade.

COMMENT
COMMENT
July 10, 2019
How to play a zero interest rate? A high yielding stock into residential mortgage backed securities. Slow growth is good for them, but when things go haywire it can fly apart. The dividend can be somewhat variable.
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How to play a zero interest rate? A high yielding stock into residential mortgage backed securities. Slow growth is good for them, but when things go haywire it can fly apart. The dividend can be somewhat variable.
DON'T BUY
DON'T BUY
December 15, 2016

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.

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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.

DON'T BUY
DON'T BUY
November 23, 2016

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.

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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.

DON'T BUY
DON'T BUY
May 6, 2016

Mortgage REITs. These tend to attract a lot of investors. The yield is very high, between 12% and 15%. They use debt to lend it as mortgages. The stock has been in decline. Why get a high yield vehicle when you are going to lose it all on capital? It is better to focus on high quality real estate.

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Mortgage REITs. These tend to attract a lot of investors. The yield is very high, between 12% and 15%. They use debt to lend it as mortgages. The stock has been in decline. Why get a high yield vehicle when you are going to lose it all on capital? It is better to focus on high quality real estate.

SELL
SELL
November 17, 2015

See comments under American Capital Agency (AGNC-Q). The stock has been bumping along in a range and paying a dividend. There is a new CEO in place. The relative strength is not good. There are quite likely a number of headwinds from different perspectives here.

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See comments under American Capital Agency (AGNC-Q). The stock has been bumping along in a range and paying a dividend. There is a new CEO in place. The relative strength is not good. There are quite likely a number of headwinds from different perspectives here.

COMMENT
COMMENT
July 2, 2015

With this, you are borrowing on the short end of the curve and lending on the long end, so it is very much a spread business. You are using a lot of leverage when you do that. The rule of thumb is that you typically want to buy them when they are trading at a discount to BV. He doesn’t own any of these, because there is a significant risk if interest rates move up too quickly. There is reinvestment risk and prepayment risks. However, for the most part the dividends are safe and you are getting a good entry point.

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With this, you are borrowing on the short end of the curve and lending on the long end, so it is very much a spread business. You are using a lot of leverage when you do that. The rule of thumb is that you typically want to buy them when they are trading at a discount to BV. He doesn’t own any of these, because there is a significant risk if interest rates move up too quickly. There is reinvestment risk and prepayment risks. However, for the most part the dividends are safe and you are getting a good entry point.

SPECULATIVE BUY
SPECULATIVE BUY
March 19, 2015

You want to buy when it is at a discount to book and it is now at $.80 on the dollar. These mortgage REITs have a habit of cutting the distribution if the rates flatten. Not a bad one to own if you want to take a flyer and get a decent yield.

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You want to buy when it is at a discount to book and it is now at $.80 on the dollar. These mortgage REITs have a habit of cutting the distribution if the rates flatten. Not a bad one to own if you want to take a flyer and get a decent yield.

COMMENT
COMMENT
January 20, 2015

A mortgage-backed securities lender in the US. Highly levered. They lend and then get free funding from the Fed and distribute out 100% of their earnings. Because you are getting 13%-14%, all you want it to do is just stay stable. If you think the Fed is going to raise rates, it generally hurts them. On the opposite side, they have the underlying security of US housing improving every day. 2 out of 3 years you will make 14%-15%, but you could be down 20% in one year. You have to be very careful. This probably would not be the greatest timing to get in.

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A mortgage-backed securities lender in the US. Highly levered. They lend and then get free funding from the Fed and distribute out 100% of their earnings. Because you are getting 13%-14%, all you want it to do is just stay stable. If you think the Fed is going to raise rates, it generally hurts them. On the opposite side, they have the underlying security of US housing improving every day. 2 out of 3 years you will make 14%-15%, but you could be down 20% in one year. You have to be very careful. This probably would not be the greatest timing to get in.

COMMENT
COMMENT
August 12, 2014

There is a lot of volatility in the sector. He doesn’t own any of the mortgage REITs, although he does think they are starting to represent pretty decent value here. Simple explanation. They borrow on the short end of the curve, lever it up 6 or 7 times and invest it in the long end of the curve in the form of mortgages. You have seen interest rates go down which have increased their reinvestment risk, so the returns they were getting 3 or 4 years ago they were no longer getting, which resulted in dividend cuts. Results have stabilized somewhat. The rule of thumb is that you want to buy these when they are trading at about $.75-$.85 on the dollar in terms of book value. If you own, it is a pretty decent place to get high yield, just recognize that there is going to be a lot of volatility embedded within these.

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There is a lot of volatility in the sector. He doesn’t own any of the mortgage REITs, although he does think they are starting to represent pretty decent value here. Simple explanation. They borrow on the short end of the curve, lever it up 6 or 7 times and invest it in the long end of the curve in the form of mortgages. You have seen interest rates go down which have increased their reinvestment risk, so the returns they were getting 3 or 4 years ago they were no longer getting, which resulted in dividend cuts. Results have stabilized somewhat. The rule of thumb is that you want to buy these when they are trading at about $.75-$.85 on the dollar in terms of book value. If you own, it is a pretty decent place to get high yield, just recognize that there is going to be a lot of volatility embedded within these.

HOLD
HOLD
June 9, 2014

Has been somewhat cautious on this in the last 3 years. They borrow shorter-term debt and lend money on the long end of the curve. They make money on the spread in between, except that they lever up their borrowing versus their lending at a ratio of about 6 to 1. This means they are very sensitive to changes in the yield curve. It is his expectation that over time, the yield curve will flatten. Doesn’t think you will see an erosion in NAV at this time. Usually want to buy these when they are trading at about $.85 on the dollar, which is where they are right now. Very risky.

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Has been somewhat cautious on this in the last 3 years. They borrow shorter-term debt and lend money on the long end of the curve. They make money on the spread in between, except that they lever up their borrowing versus their lending at a ratio of about 6 to 1. This means they are very sensitive to changes in the yield curve. It is his expectation that over time, the yield curve will flatten. Doesn’t think you will see an erosion in NAV at this time. Usually want to buy these when they are trading at about $.85 on the dollar, which is where they are right now. Very risky.

DON'T BUY
DON'T BUY
March 27, 2014

Hasn’t owned any US mortgage REITs.

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Hasn’t owned any US mortgage REITs.

COMMENT
COMMENT
January 17, 2014

Part of a group of US mortgage REITs. They buy up mortgages and put debt on those mortgages. This is a very dangerous situation and he doesn’t like any of these. Wouldn’t sell it right now because it is so far down but, if you get a lift, then you should Sell.

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Part of a group of US mortgage REITs. They buy up mortgages and put debt on those mortgages. This is a very dangerous situation and he doesn’t like any of these. Wouldn’t sell it right now because it is so far down but, if you get a lift, then you should Sell.

COMMENT
COMMENT
November 20, 2013

Mortgage REITs have got hit very hard. With these, you are buying longer duration mortgages and borrowing short term to fund them. You are collecting the yield difference between the longer-term bonds and the way you are funding them. When that spread compresses, you start to see earnings press as well. Also, book values come down because the value of the bonds you have purchased have come down as well. Mortgage REITs are probably trading at a 10%-15% discount to their actual BV. Dividends look sustainable but there will be a fair bit of volatility.

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Mortgage REITs have got hit very hard. With these, you are buying longer duration mortgages and borrowing short term to fund them. You are collecting the yield difference between the longer-term bonds and the way you are funding them. When that spread compresses, you start to see earnings press as well. Also, book values come down because the value of the bonds you have purchased have come down as well. Mortgage REITs are probably trading at a 10%-15% discount to their actual BV. Dividends look sustainable but there will be a fair bit of volatility.

DON'T BUY
DON'T BUY
July 2, 2013

(Market Call Minute) Mortgage backed security lender and fed backing out is hurting them.

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(Market Call Minute) Mortgage backed security lender and fed backing out is hurting them.

Showing 1 to 15 of 46 entries

Annaly Capital Management Inc.(NLY-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 1

Stockchase rating for Annaly Capital Management Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Annaly Capital Management Inc.(NLY-N) Frequently Asked Questions

What is Annaly Capital Management Inc. stock symbol?

Annaly Capital Management Inc. is a American stock, trading under the symbol NLY-N on the New York Stock Exchange (NLY). It is usually referred to as NYSE:NLY or NLY-N

Is Annaly Capital Management Inc. a buy or a sell?

In the last year, 1 stock analyst published opinions about NLY-N. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is SPECULATIVE BUY. Read the latest stock experts' ratings for Annaly Capital Management Inc..

Is Annaly Capital Management Inc. a good investment or a top pick?

Annaly Capital Management Inc. was recommended as a Top Pick by Greg Newman on 2020-06-12. Read the latest stock experts ratings for Annaly Capital Management Inc..

Why is Annaly Capital Management Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Annaly Capital Management Inc. worth watching?

1 stock analyst on Stockchase covered Annaly Capital Management Inc. In the last year. It is a trending stock that is worth watching.

What is Annaly Capital Management Inc. stock price?

On 2020-09-25, Annaly Capital Management Inc. (NLY-N) stock closed at a price of $7.28.