I held the stock for someone else 7-12 years ago, and followed it closely back then. Back then they were really struggling with a narrow spread, even an inverted yield curve, but they always managed to post a great dividend somehow. This company is extremely well managed. Solid fixed income was a great thing in recessions. They never disappointed. Seems to me like we're entering a Goldilocks setup for NLY. The spread should widen nicely. And it's coming back to me about the refinancing risk, like you said. I remember them talking about refinancing hurting them as rates fell. I'm sure that will lessen now.
I'm sure NLY is a buy right now, the question is, who will buy? I'm up to my neck in BAC. I think NLY is just playing second fiddle for the time being. Some people probably sold out and got in banks before the results of the stress test. I know I did with some other perfectly good stocks. But those of you holding for divs should be in great shape, much better shape than when I held it for years. Thanks for the reply and good luck!