Bobby, i dont think there will be any Fed rate increases. The Fed seems like its walking on thin ice, and Yellen doesn't want to look bad, so on and on it goes. As for NLY, it will continue to be in the $9-10 range for quite a while. And regarding the dividend, NLY is leveraged so low, "about 5 to 1, i don't see a dividend cut.
Denahan said, “We continue to position our company to deal with the unintended outcomes of monetary policy wind-down and the opportunities that go with it. We’ve maintained leverage at very conservative 5.3-to-1 while delivering solid core earnings of $0.30 per share, and we believe we can continue to support a competitive dividend going forward. ”
The background to this comment was her discussing how the Fed’s monetary policy has elevated asset prices and how she’s thinking about the financial markets as the Fed disentangles itself from the financial markets and returns to a more traditional role.
Denahan further remarked, when asked by an analyst about increasing leverage, “You know I do get a feeling that there’s a lot of dove-ishness at the Fed, and I don’t think I’m alone in that feeling. And I do think they are looking for reasons to continue to, even in light of some stronger numbers, to continue to hold rates lower than I personally think they should, and probably lower than some other market participants think they should.”
She continued, “So I don’t think there’s any reason right now to say we’re going to just take leverage up and we feel completely comfortable about that. I do feel, being in the agency arena, you are on the front lines of potential re-engagement by the Fed, and so if things start to get a little out of control or volatility picks up or some of their fears start to surface in a bigger way, I think the mortgage market is going to be the beneficiary of that, and we feel comfortable in that position.”
American Capital Agency’s "at risk" leverage ratio was 6.4x as of Mar 31, 2015, compared with 6.9x as of Dec 31, 2014, compared to NLY's very conservative 5.3 to 1.
Bobby, so long as MS Dennihan can give shareholders peace of mind that the .30 cent dividend wont head south anytime soon due to hedging, then i'm content!
An exerpt from Feb 2015....
Higher interest rates would now be beneficial for many mortgage REITs like Annaly because their earnings would gain more from a decrease in costs tied to homeowner refinancing than their asset values would drop, Denahan said.
“As we have stated many times before we welcome the return of normalcy to the markets,” Keyes said. “This includes the return of market-driven pricing and volatility.”
Glenn Votek bought 25000 shares, good enough for me! Book Value will rise next qtr.
wouldn't surprise me if FBR bought shares this morning at $10.36
Thats how these manipulators work, they trash the stock so they can buy it lower.
Goldman does it often.
Return of capital (ROC) refers to principal payments back to "capital owners" (shareholders, partners, unitholders) that exceed the growth (net income/taxable income) of a business or investment. It should not be confused with Rate of Return (ROR), which measures a gain or loss on an investment.
Annaly Capital Management (NYSE:NLY) had its price target upped by Keefe, Bruyette & Woods from $12.00 to $13.00 in a research note issued to investors on Thursday. The firm currently has a market perform rating on the stock.
OK! so the company beat my BV prediction. Very nice! Earnings were a non-event to me. Looking forward to the next dividend announcement in about 3 weeks... i expect another 30 cents per share