OK vanna, but Please tell me what you see--anywhere-- that you're liking what you see today. There is nothing but abnormal risk levels almost anywhere and very few, if any, places to hide. Leaderless, no clueless government including the Fed scares me to death and significant parts of the market make no sense already. Muni market for instance is almost disfunctional at this point.
Better to stand pat on a conservatively managed NLY than to jump around like water fleas on mini fads or momentum plays. You could do worse than to stand pat.
Bottom Line: gotta put your dough somewhere but keeping extra levels of cash seems wise today. You can't take ephemeral paper profits to Publix but cash, even shrinking NLY cash payouts, can be spent.
Discounts to nav's can be madening slow to narrow at times but in a company with real auditing available validating them they are very real and represent a stock that's on sale, 15% off in this case. Part of the problem here is that NLY is heavily owned by gunslinging institutions, primarily top down traders, which are not prone to holding to recapture the value of a heavy discount. In a word, they're "herdal", kinda like those big schools of fish that seem to simultaneously turn on every current movement.
An aside her. For years I've defended NLY's mgt vs the fans of the "better performing" AGCY. After the most recent quarter I rest my case. If you can stand the volatility of the mortgage markets these days, NLY is still the cream of the crop.