Are you serious? Agency securities have the implied backing of the federal government. And the government has made good on this implication through this the worse of economic times. So, bad debt allowance is a joke.
Likewise share dilution is a joke. They typically get above BV for their issuances. Net results is actually increase in value for old shareholders.
<<This is a dilution mechanism that waters down market value. Is the company paying off debt with security issues?>>
Better do some more homework. NLY does not do dilutive secondaries. They've been accretive to both BV AND EARNINGS.
That said there may be a downside in that some buyers are reluctant to pay much more than BV in fear that another secondary will be done. I think this argument is weak in that the next secondary, if done, will likely also be accretive to existing shareholders so why worry about it.
Bottom Line: You are flat wrong on your dilution issue to say nothing of your other points. If you're gonna bash on this board you need to educate yourself first.