I believe some big institutions are liquidating because of two worries: Annaly's dividend and NAV (book value). The NAV has declined from above $9.00 to the current $7.60 per share. Will it go lower if short term rates go higher? Probably a bit, but likely not much (my opinion, not the sellers). And the dividend: it's currently $1.40 per year, whereas earnings in '99 were only $1.41. If earnings deteriorate, the dividend will have to be cut. And many times when dividends are cut, it's not by 5% or 10%, but by as much as 50%! Of course this is not realistic with NLY, because of their REIT classification and SEC distribution requirements. I think the worries are overblown, so I'm buying at these levels.