Farrell and Denahan-Norris appear to have worked closely over the years, and her ascension to the position of CEO is likely, and not apt to cause any changes to Annaly's business plans. Annaly recently announced a $1.5 billion stock-buyback program, which followed a recent repurchase of 4% convertible senior notes with 2015 due dates. This new announcement has prompted an upgrade by Compass, which notes the savvy distribution of capital, an action that will also help support the stock price. The all-important book value should also be bolstered by QE3, not only for Annaly but for all mREITs, as MBSes become scarcer and scarcer.
Annaly has been through hard times before, and will likely see its way through the current dodgy financial climate, too. While Farrell will certainly be missed, his company seems to be in able hands.