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Annaly Capital Management, Inc. Message Board

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  • ikane92 ikane92 Aug 25, 2011 10:06 AM Flag

    now what's wrong with this POS

    How exactly does refinancing effect NLY. I thought most of their MBS's had fixed rates. Does the refinancing effect these rates? Do you know if NLY breaks down their average yield?

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    • 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.

      Now there's a plan...!!!

      • 1 Reply to value_player_too
      • "stick the private sector (NLY, etc) with losses"

        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

 
NLY
10.25-0.01(-0.10%)Apr 24 4:02 PMEDT