There are downside risks--bad management, inverse yield curve, the inherent risk in playing the spread between long and short maturities and yield curves.
Above average yield betokens above average risk in normal times. If we ever get back to those times, maybe NLY's yield will come down with out any dividend reduction. We can always hope! Today, there is still a huge fear factor built in to NLY's price.
----- There are downside risks--bad management, inverse yield curve------
but this is the only "management" who predicted this financial collapse as a "slow motion" train wreck, 2 years before it happened.. and correctly made adjustments in their strategy to prepare. literally the only one.... so how could we ever consider this management as "bad"?
I've never seen anyone more accurate in their analysis as to what "WILL" happen as this management, and i've been looking for a long long time.