Annaly Capital Management (NYSE: NLY) is a mortgage real estate investment trust (mREIT) that invests primarily in mortgage-backed securities and related assets. It earns income from the net interest spread between the yield on its mortgage assets and the cost of borrowing used to finance those positions. The company's portfolio spans agency MBS, residential credit assets, credit risk transfer securities, and mortgage servicing rights, as disclosed in its FY2025 Form 10-K filed February 12, 2026. As a REIT, Annaly is required to distribute the substantial majority of its taxable income to shareholders as dividends, making dividend yield central to its equity investor proposition. The business is highly sensitive to interest rate movements, yield curve shape, and prepayment rates, all of which directly affect net interest income. Annaly operates entirely within U.S. residential mortgage markets.

Revenue model

Net interest income earned on a leveraged portfolio of mortgage-backed securities and related residential mortgage assets, financed primarily through short-term borrowings.

Products and services

Agency mortgage-backed securities, residential credit investments, credit risk transfer securities, mortgage servicing rights.

Customers and end markets

U.S. residential mortgage market. End exposure is to U.S. residential borrowers through ownership of MBS and related instruments. Counterparties include financing providers and MBS market participants.

Value-chain role

Intermediary investor and capital provider in the U.S. residential mortgage securitization chain, holding and financing MBS and mortgage-related assets rather than originating loans directly.

Geographic exposure

United States residential mortgage market.

Source: SEC 10-K, filed 2026-02-12

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