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Annaly Capital Management, Inc. Message Board

  • frontsept frontsept Dec 3, 2004 12:26 AM Flag

    When the shoe drops, it will be ugly

    For those of you who know bond math 101. When rates go up, bond prices go down. However, NLY's stock price goes up when rates go up. If you agree that the only asset NLY owns are mortgages, then does this make sense?

    To be fair, if investors keep buying NLY stock as rates go up, so it goes. However, I wouldnt want to be long when the music stops.

    If you are a student of the markets, you will know that at some point the music will stop.

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    • It's not rates, it is the spread my friend and not the absolute rate of mortgages. Furthermore about 80% of Annaly is in ARMS and managment understnads how to maneuver in the market pretty much regardless. These guys ar good. theonly one comprable are over at NFI and they have weathered the worse short attacks imaginable last April.

      The music wont stop until it pases 21 and then it will be fine anway, it will only stall--and of course if the dividend goes up it can climb higher than 21.

      Every short attack on NLY fails.

    • Sounds like we have another negative new poster--uses many fancy sounding thoughts--BUT if he is so down n nly why is he a owner? or why is he wasting his time here on his sure loser?? sounds like another poster that looks at nly thru his own special negative viewpoint or he is a SHORT trying to bring down price so he can get out cheaply!!
      like a lithenatural in disguise??

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