Annaly Capital Management, Inc. (NYSE:NLY)
CAPS Rating:
The Company owns and manages a portfolio of mortgage backed securities, including mortgage pass-through certificates, collateralized mortgage obligations and other securities representing interests in or obligations backed by pools of mortgage loans.
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The bull case for Annaly is extended, low rates from the Fed.
This pick was based on http://www.fool.com/investing/general/2011/07/05/rates-and-reits.aspx
I'm getting concerned with lower, long-term rates and prepayments squeezing mortgage REIT interest rate spreads and sold my RL position in Hatteras (HTS) - another mREIT - last fall and closed my CAPScall on it.
www.fool.com/investing/general/2011/10/27/a-mortgage-reit-on-the-sell-block.aspx
At this point, I'm hanging on to the NLY pick in the hope it'll sneak into the green so I can close it without dinging my score. It I held it in real life, I'd sell it and move on.