In the latest market close, Annaly Capital Management (NLY) reached $19.76, with no movement compared to the previous day. This change was narrower than the S&P 500's daily loss of 0.54%. Meanwhile, the Dow lost 0.53%, and the Nasdaq, a tech-heavy index, lost 0.66%.Heading into today, shares of the real estate investment trust had gained 0.71% over the past month, outpacing the Finance sector's gain of 0.08% and lagging the S&P 500's gain of 1.5% in that time.The investment community will be closely monitor ...

A month has gone by since the last earnings report for Annaly Capital Management (NLY) . Shares have added about 0.4% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Annaly due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Annaly Q3 Earnings Miss Expectations, Boo ...

Core Viewpoint - Annaly (NYSE: NLY) is expected to benefit from declining Federal Fund rates, which will lead to a favorable trend in its spread as the Federal Reserve continues its normalization efforts [1] Group 1 - The company is positioned to see lower interest costs in the near future, enhancing its financial performance [1]

Group 1 - The article discusses the concept of an "expert economy," where individuals focus on specializing in specific skill sets, often lacking knowledge outside their area of expertise [1] - High Dividend Opportunities (HDO) is highlighted as a prominent community for income investors and retirees, boasting over 8,000 members [1] - HDO's Income Method is designed to generate strong returns regardless of market volatility, simplifying retirement investing [1] Group 2 - The article promotes a Model Portfolio that targets a yield of 9-10%, emphasizing the benefits of dividend investing [2] - A limited-time offer includes a 17% discount on the annual price of $599.99, along with a 14-day free trial [2]

In this third article on the Agency mortgage REIT preferreds sector, we take a look at the floating-rate Annaly Capital (NYSE: NLY ) preferreds. We continue to see terrific value in these stocks as the company's modest leverage and continuedCheck out Systematic Income and explore our Income Portfolios, engineered with both yield and risk management considerations. Use our powerful Interactive Investor Tools to navigate the BDC, CEF, OEF, preferred and baby bond markets.Read our Investor Guides: to CEFs, Pr ...

Investors in Annaly Capital Management, Inc. (NLY) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $3 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It ...

Group 1 - The central bank has initiated a shift in interest rates, implementing a 50 basis points rate cut in September, which is expected to benefit the mortgage market [1] - The changing approach of the central bank towards interest rates is likely to create investment opportunities in high-tech and early growth companies, as well as in growth buyouts and value stocks [1]

The mortgage REIT is seeing tailwinds in its business. Investors are undoubtedly attracted to mortgage real estate investment trusts, or mREITs, such as Annaly Capital Management (NLY -1.07%), for their high dividend yields. Annaly, for its part, currently sports about a 13.2% yield. Although investors might like these high yields, mREITs can sometimes be difficult to understand. With Annaly recently reporting its third-quarter results, let's look at the key metrics investors should pay attention to when co ...

Core Viewpoint - Annaly Capital Management's high-yielding dividend, over 13%, is at risk as its earnings available for distribution (EAD) are barely covering the dividend payment, indicating potential for future cuts [1][6]. Financial Performance - Annaly reported EAD of $0.66 per share in Q3, slightly above its dividend payment of $0.65 per share, but down from $0.68 in Q2 and flat compared to the previous year [2]. - EAD has declined from $0.89 per share at the end of 2022 to $0.81 in Q1 2023, leading to a series of dividend cuts, including a reduction from $0.88 to $0.65 [2]. Market Conditions - The market for agency mortgage-backed securities (MBS) is improving, benefiting from the Federal Reserve's rate-cutting cycle, which allows Annaly to deploy equity capital effectively [4]. - The CEO indicated optimism regarding the operating environment, expecting strong risk-adjusted returns from their portfolio, particularly in agency MBS, which is projected to yield returns in the 15% to 17% range [4]. Leverage and Future Outlook - Annaly's economic leverage ratio decreased to 5.7 times, down from 5.8 in the previous quarter and 6.4 a year ago, suggesting a more conservative approach that may help maintain dividend coverage [3][5]. - Given the lower leverage and improving market conditions, the company may continue to earn enough to cover its dividend in the near future [5].

Financial Data and Key Metrics Changes - The book value per share increased from $19.25 in the prior quarter to $19.54, reflecting strong performance across all business lines [19] - The company generated an economic return of 4.9% for Q3 and 10.5% year-to-date, with earnings available for distribution exceeding the dividend [7][19] - Average asset yields excluding PAA increased by 11 basis points to 5.25% in Q3, while net interest spread excluding PAA improved by 8 basis points to 1.32% [21][22] Business Line Data and Key Metrics Changes - The Agency MBS portfolio grew by over $4 billion notional, with price appreciation contributing to the increase [8] - The residential credit portfolio ended Q3 at $6.5 billion in economic market value, with a quarter-over-quarter increase of $535 million [11] - The MSR portfolio ended Q3 at $2.8 billion in market value, with a minimal decrease in valuation despite an 80 basis point decline in mortgage rates [14] Market Data and Key Metrics Changes - Interest rate volatility declined to the lowest level since the March 2023 regional banking crisis, supporting the attractiveness of fixed income assets [6] - The market value of all three business lines increased quarter-over-quarter, indicating strong institutional demand [8] - The correspondent channel produced record volumes in Q3, with locks and fundings at $4.4 billion and $2.9 billion, respectively [12] Company Strategy and Development Direction - The company remains optimistic about its business model with the Fed's cutting cycle underway and potential for a soft landing [17] - There is a focus on maintaining a disciplined approach to portfolio management concerning leverage, liquidity, and duration exposure [17] - The company aims to grow its residential credit business while being cautious about credit risk in the current cycle [33] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of managing rate risk amid political uncertainty and market volatility [25][26] - The company is optimistic about the potential for increased bank demand and foreign buyers in the Agency MBS market as the Fed cutting cycle continues [54] - Management expressed confidence in the dividend outlook, expecting modest earnings growth in Q4 compared to Q3 [29][30] Other Important Information - The company raised $1.2 billion of accretive common equity since the beginning of Q3 through its ATM program [7] - The partnership with Rocket Mortgage is expected to enhance competitiveness in purchasing new MSR and improve recapture capabilities [16] Q&A Session Summary Question: How is the company managing rate risk amid political uncertainty? - Management indicated that they entered the quarter with virtually no rate risk and proactively managed the portfolio by selling approximately $2 billion in Agency MBS [25][26] Question: What is the current status of book value? - The book value was reported to be off just over 1% pre-dividend accrual, approximately 0.5% off when considering dividend accrual [28] Question: What is the outlook for the dividend into 2025? - Management feels good about the dividend and expects to earn slightly more in Q4 than in Q3, but will need to assess the Fed's direction before making definitive statements [29][30] Question: How is capital allocation being managed across the three business lines? - Agency MBS appears to be the most attractive for capital allocation currently, but there is a desire to grow the residential credit business as well [32][33] Question: What is the competitive landscape in the non-QM space? - Management believes they are gaining market share and have established deep relationships in the originator community, which positions them well against new entrants [56][59]