This conservative management team protected their company well without knowing what the fed plans to do. No surprises here, NLY had very low leverage, they were pretty hedged, and the rates were super low.
Now when rates rise, like they have been, they will have plenty of room to increase their leverage to take complete advantage.
Plus, they have also been increasing their exposure to commercial each quarter which will contribute to growth and a more stable income.
I sleep well with the conservative nature of the company, plus I have 25 years left until I need to take out the income.