Annaly received a BIG boost from Steve Sjuggerud in Street Authority's Daily News blatt this AM, thought it's still suspicious why the call options exploded the day BEFORE he came out with his strong recommendation. He has a large following, though I sometimes wonder if Stansberry, his 'apocalyptic' publisher, may not be averse to doing some 'front running'. Wonder if the SEC's computers picked up on the huge volume followed by todays recommendation???
Here is some info I found that is cause for some concern.
Scary News for mREITs:
Fed will extend average maturity of its holdings of securities "to support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate..." The last one is kind of scary for mREITs, since this action directly affects mREITs' business operations. The committee decided to replace its short-term Treasury securities with long-term Treasury securities. In application, Fed will buy $400 billion of long-term bonds (with maturities of 6+ years), and sell $400 billion of short-term securities (with maturities of less than 3 years).
The question is, how this will affect interest rates? Let me explain the effect of this action using two-step logic