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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Helicopter Ben says low interest rates till 2013 which should keep the interest rate spread good for NLY, keeping the divi payout high. Will this outperform the S&P? I believe so, the economy is looking gloomy (“they” say) and the Fed said no QE proper for now, so this is a bet that the S&P isn’t going to take off anytime soon based on those 2 factors. NLY’s ~14% divi will slowly whittle my NLY caps cost basis down.