Bernanke's comments today...sunk em' all ...You can read it in MarketWatch article...I'll go with PREFERRED stock only (!), until the dust settles on common shares...or the spreads begin to widen later.
That's interesting, because I have the exact opposite experience. I slept like a baby in 2008 with this as my largest position, as others were jumping out of windows. I trimmed a little here and there, but then almost doubled my position again near the end of 2012. Then trimmed again back to 20% of my portfolio just under $16 and sold $17 2014 calls against the rest. I guess the reason I sleep well is because I am patient and I expect this stock can go up and down. But while you are watching the roller coaster ride it is still paying you handsomely.
I have been with NLY since literally since day one and have accumulated a very substantial amount of shares acquired at all kind of prices. I just sit tight and I don't loose any sleep over the current drop. Sooner or later it will go up because NLY is a well managed company and they know more than we do..Do you see any mutual funds or other major stockholders bail out? NLY is making some changes, which shows that they are adjusting their thinking and strategy as circumstances require. I think this is good even though it may take some time for them and us to see the fruits. It's planting season, not harvest time.
I believe much of the drop has to do with the government/FED attempt to restart a mortgage refinance program. The worry is that many people will refinance at a lower rate, increasing prepayments and thus reducing NLY's spread. We will see if it works or not. Also, the FED announced that it will continue buying up mortgage-backed securities. The FED will eventually stop doing that, and we don't know yet if the refinace plan will appeal to people. Even if it does, the worst that happens is that NLY's dividend drops a few percent. It will still be strong and eventually the improvement in the economy and the real estate market will add to NLY's bottom line and the dividend will bounce back.
In my almost 50 years of being in the stock market Annaly Capital Management (NLY) is the only stock I ever owned that I have lost sleep over. If it (NLY) ever gets to the price I bought it at I'm bailing out.
Always sell what gives you pain, regardless of other factors. I have been in the market as long as you and no longer loose sleep over it. By now, you should have learned to take your losses like a man (woman?) and get over it.
If NLY is the only stock you've ever owned that has ever made you lose sleep in almost 50 years of investing you are either: the greatest investor of all time, an investor who has only invested in one stock in almost 50 years (NLY), a liar? I've been investing for 30 years and have had dozens of stocks that have caused me a lot more anguish than NLY. Feel free to bail...I'll continue to be patient and collect my fat yield.
AGNC lost money on their hedging activity and the leverage is higher. NLY will feel some of the effects, but no where near the hit on AGNC since Annaly uses lower leverage and less extensive hedging.
Some AGNC losses are paper losses as of 3-30-13. In the month since then much of it has been reversed, but that does not go into the quarterly report.