A government plan to force down rates on existing govt backed home loans would impact NLY as well as Freddie and Fannie. Simpy put - less income, same costs.
And, since Fred and Fan are fully financed by taxpayers (to the tune of over $200 Billion so far), their loss of income will simply become another hole in the federal budget.
So there you have it folks - abrogate exisiting contracts to reduce the interest rates, stick the private sector (NLY, etc) with losses, stick the taxpayers with more damage at Fred and Fan, and hope it all isn't noticed until you get reelected.
that's like saying the homeowners who sold homes during the Great Recession were "sticking it" to the Ratings Agencies.
NLY is a well-compensated levered bond fund. There is nothing holy about the MBS REIT sector: " It should be noted that ARR paid out 20.2 million in dividends for the quarter while only earning 18.6 million. The main culprit for the payout ratio exceeding 100% was due to the two secondary offerings performed during the quarter." --- seeking alpha