Annaly Capital Management, Inc. Message Board
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FED to help Agency MBS Market
Ferderal Reserve will make $100 billion to repo market starting Monday March 10. It will be structured to accept only Agency Mortgage-Backed Securities (MBS) as collateral. This is stuff owned by NLY. It will not accept non-agency paper. This action should reduce yield spread between MBS and Treasuries. This will directly boost NLY two ways: (1) adds immediate liquidity that specifically targets agency MBS securities and (2) will boost value of MBS securities which reduces collateral that NLY needs to post.
This action will most likely be followed by a 50bp rate cut at FOMC meeting on March 18. Thus Shorts will run to cover between March 10 and March 18.-
can anyone tell me a unitranche debt is
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yes but you miss the point... only primary dealers can access this... NLY is not a primary dealer
- 1 Reply to rileymarshall
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Primary Dealers (such as Banks) hold NLY paper as collateral and can repo it to FED. This helps NLY by allowing its primary Lenders to liquify it at FED.
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I see poor people.
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stock and divvy will be fine
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The Fed is doing the right thing.
Low risk players like NLY will profit. High risk players like TMA will disappear.
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