... except Annaly Capital is huge and healthy.
Like CT, they work the spreads between short rates and longer-dated mortgages and do it with leverage. The current economic climate is favorable for that function and, combined with rental rates, vacancy rates and the archetectural index, indicates a good future for this industry.
I bought Annaly yesterday for about $16. It has fallen from $18 recently due to the recent drop in mortgage rates in tandem with the drop in the 10 year treasury to under 1.7%. A rise in re-financings accompanied that, which can impact the top end of the spreads on the instruments that NLY and CT invest in.
With the 10-year back up to 2.2%, I expect the re-fi's to abate and think that annaly's dividend will pull the stock back up to $18... I'd probably sell it if it got to $19 a share given it's utility-like trading range history.
CT shouldn't be as impacted by the early oct. interest rate swoon as their bias toward commercial mortgages insulate them a bit more. Going forward, to the extent that CT expands their balance sheet to exploit current spreads, I expect them to prosper.
No Way... Annaly has historically played the rate spread on Federal paper.. only recently have they entered into commercial property spreads -it is only a very small portion of their portfolio via subsidaries... and they have zip-o historic defaults in this area. CT has been around a long time as a player of spreads on commercial property -well before the collapse (in 2007 CT was selling at $40 per share and paying a very good dividend) ... comparing NLY with CT is like comparing a professional football team with high school athletes... CT will be ok but healing takes a very long time in this market.
Fwiw ct upgraded by ford equity reearch from sell to strong buy. Also rated buy from hold on jayWalk consensus. Both from ameritrade. Cmon baby! Similar to market edge. Trend is positive according to them. Cite earning improvement.
Low-price trader platforms can't afford to offer CFA-grade, fundamental analysis but often have computer-generated technical tid-bits.
Not much use in my world but I appreciate the effort, Utley. Thx.