<<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.