now trading below book value. with the flat yield curve, and rates down, NLY's ARM portfolio may not be doing well. hence, the declination in value. may be a real opportunity here for long-term appreciation and yield if they can pull it off.
Consider, too, that NLY has been moving into fixed rate mortgages, which comprised nearly 20% of its portfolio at 1Q98-end. FRM should be performing better than ARMS in this market, since FRM market is much more broad.