Annaly Capital Management, Inc. Message Board
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Big drop this am, are these guys being called?
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Is it possible the change is driven by income taxes? I think NLY under the current model has to pay income taxes on compensation for individuals who make more then some number say 1 or 2 million. Under the proposal the Mgt. Fee is 100% tax deductible. If I am correct, how does the new Mgt company avoid this tax?
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Two big factors...
How large was their sale of MBS during the quarter? A large percentage of the portfolio has already been re-structured during the last 18 months, If these sales were reduced., they will have less premium writeoff that results in higher income..
They also have a large amount of expensive swaps that are closing out during early 2013. Replacement of these swaps with new 5 year swaps will reduce our cost structure.
My guess is $ .50. -
Another way to look at this question...On 12/18/12, the day that NLY announced the last divi of $ .45, the price was $ 14.27. We know the current price......Me thinks the big boys are expecting a positive divi announcement.
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Two very positive trends....
Increased MBS rates means a reduction in refis....Less premium writeoff. Another possible benefit, but we have to wait until the earnings press release.....How large was their sale of MBS during the quarter. I hope with such a large percentage of the portfolio already re-structured during the last 18 months, that these sales will be reduced. If so, they will have less premium writeoff also.
The other positive trend is the rollover of the outstanding swaps. They have a large amount of expensive swaps that are closing out during early 2013. Replacement of these swaps with new 5 year swaps will reduce our cost structure.
I would not be surprised if the divi goes up to $ .50.