If you wanted a Reit with heavy exposure to commercial real estate why wouldn't you have just switched to a reit that already specializes in that?
As opposed to wishing for an agency reit to turn 25% of it's portfolio into commercial.
NLY has very conservative management.
I don't see them pushing that much into commercial anyway.
I am not wishing anything here. Just trying to #$%$ the growth potential of Crexus. Annaly is not going to buy a billion dollar company and let it sit idle or shut it down. What makes Nly conservative is that their charter limit their exposure to 25& of non-agency portfolio.As long as they are within the 25& they are operating legally.Nly has 17 billion shareholder equity and 25&of that is over 4 billion.So if Nly commit that capital Crexus can grow to 5 billion. Again if Crexus chooses to leverage, it can double its size to 10billion, a 1:1 ratio allowed for commercial entity.But again we leave that decision to the management, that is why they get paid handsomely.