Annaly Capital Management, Inc.
NLY.US Full Coverage
Last updated:
Volume
52W avg
Day Range
52W High
52W Low
Market Cap
Div Yield
Forward P/E
P/B
Headlines
FY2026 Q2
Annaly Capital Management posted its eleventh consecutive quarter of positive economic returns, raising the quarterly dividend to $0.75 per share. The quarter delivered a 5.5% economic return as book value per share climbed 1.7% to $20.15 and the Residential Credit platform set a record $6.8 billion in securitization volume, including the market’s first $1 billion Non‑QM transaction. The hedge ratio increased to 97% and economic leverage fell to 5.6 ×, highlighting a defensive risk profile.
Economic Return
5.5%
+400 bps
EAD per Share
$0.79
+$0.03
Book Value per Share
$20.15
+1.7%
Resi. Credit Securitization
$6.8B
+44.7%
Economic Leverage
5.6x
-0.1x
What We're Watching
Risk
Impact of Shifting Fed Policy Expectations
📅
Ongoing
What to Monitor
The trend in average economic cost of funds and the performance of the swap-heavy hedge portfolio if short-term rates rise. Monitor management commentary on NIM compression.
Why It Matters
Market expectations have shifted from rate cuts to a potential rate hike in 2026. This could increase financing costs and pressure earnings, testing the resilience of the company's recently increased dividend and the effectiveness of its defensive hedging.
Strategic
Programmatic Issuance of Large-Scale Securitizations
📅
Next 1-2 Quarters
What to Monitor
Whether the company successfully executes additional securitizations at or near the $1 billion size, and commentary on investor demand and pricing for these larger deals.
Why It Matters
Management has a stated goal to move toward programmatic billion-dollar deals. Achieving this demonstrates market leadership, improves execution by lowering per-unit fixed costs, and solidifies the platform’s competitive advantage in creating proprietary assets at scale.
Operational
Competitive Pressures in Residential Credit Sourcing
📅
Next Quarter
What to Monitor
The trend in quarterly lock and funding volumes in the correspondent channel, balanced against management\'s commentary on maintaining mid-teens ROE targets.
Why It Matters
Management acknowledged that lock volume declined 9-10% sequentially due to a conscious choice to not "lead with pricing." A continued decline could signal that intense competition is making it difficult to source assets at target returns, potentially slowing a key growth engine.
Strategic
MSR Portfolio Rotation to Enhance Returns
📅
Ongoing
What to Monitor
Continued evidence of the strategy to sell lower average loan balance MSR and purchase higher average loan balance MSR, and any quantification of the resulting yield pickup.
Why It Matters
This strategy is designed to meaningfully enhance the MSR portfolio\'s return profile by capitalizing on the company\'s variable-cost servicing model. Its continued execution is a key driver of organic return improvement within the segment.
Operational
Moderation of Operating Expenses
📅
Next Quarter
What to Monitor
Whether the OpEx-to-equity ratio declines from the 1.40% level seen in Q2, in line with management\'s expectation for moderation.
Why It Matters
The ratio increased notably in Q2. Confirming that this increase was temporary is important for validating the company\'s cost control and the long-term durability of its earnings power and dividend coverage.
