Performed DD on NLY. Increased portfolio share.
Company Profile:
Annaly Capital Management, Inc., a real estate investment trust, engages in the ownership, management, and financing of a portfolio of investment securities. The company invests primarily in mortgage pass-through certificates, collateralized mortgage obligations, agency callable debentures, and other mortgage-backed securities representing interests in or obligations backed by pools of mortgage loans. Annaly Capital also invests in Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, and Federal National Mortgage Association debentures. The company has elected to be taxed as a real estate investment trust (REIT). As a REIT, the company would not be subject to federal corporate income tax, provided it distributes at least 90% of its taxable income to its stockholders. It was formerly known as Annaly Mortgage Management, Inc. and changed its name to Annaly Capital Management, Inc. in August 2006. Annaly Capital Management was incorporated in 1996 and is based in New York City
-yahoo
Reason:
The most important determinant in valuing Annaly's portfolio and profitability are interest rates. These rates determine the borrowing cost of Annaly's securities, and the margin that the firm earns on its investments. The spreads between borrowing cost and returns on securities - the yield curve - is Annaly's profit. Because of the current make up of the portfolio, decreased interest rates benefit Annaly, while higher interest rates will squeeze margins. This comes from the weighting of its holdings/borrowings with regard to rate adjustments.
-wikinvest
With the federal government planning to decrease interest rate to encourage borrowing to stimulate national GDP growth, we will start to see increasing profit margin for Annaly in the coming quarters. This will increase dividend yields and thus improve our overall portfolio value.
Company Profile:
Annaly Capital Management, Inc., a real estate investment trust, engages in the ownership, management, and financing of a portfolio of investment securities. The company invests primarily in mortgage pass-through certificates, collateralized mortgage obligations, agency callable debentures, and other mortgage-backed securities representing interests in or obligations backed by pools of mortgage loans. Annaly Capital also invests in Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, and Federal National Mortgage Association debentures. The company has elected to be taxed as a real estate investment trust (REIT). As a REIT, the company would not be subject to federal corporate income tax, provided it distributes at least 90% of its taxable income to its stockholders. It was formerly known as Annaly Mortgage Management, Inc. and changed its name to Annaly Capital Management, Inc. in August 2006. Annaly Capital Management was incorporated in 1996 and is based in New York City
-yahoo
Reason:
The most important determinant in valuing Annaly's portfolio and profitability are interest rates. These rates determine the borrowing cost of Annaly's securities, and the margin that the firm earns on its investments. The spreads between borrowing cost and returns on securities - the yield curve - is Annaly's profit. Because of the current make up of the portfolio, decreased interest rates benefit Annaly, while higher interest rates will squeeze margins. This comes from the weighting of its holdings/borrowings with regard to rate adjustments.
-wikinvest
With the federal government planning to decrease interest rate to encourage borrowing to stimulate national GDP growth, we will start to see increasing profit margin for Annaly in the coming quarters. This will increase dividend yields and thus improve our overall portfolio value.