Since my last update, long-term treasury rates have dropped, leading to a negative yield spread, which could be a challenge for NLY. However, this narrowing yield spread is outweighed by other positive factors. The two main reasons are the strong technical trading patterns and the expectation of interest rate cuts in the next few months.
On the most recent trading day, Annaly Capital Management (NLY) closed at $21.69, which is an increase of 1.31% compared to its last closing price.
On the most recent trading day, Annaly Capital Management (NLY) closed at $21.69, which is an increase of 1.31% compared to its last closing price.
On March 5, 2025, NLY, PFLT, and ORI were included in the Zacks Rank #1 (Strong Buy) list of income stocks.
Annaly (NLY) shared its earnings report 30 days ago. What can we expect for the stock moving forward?
This Industry Outlook article has pointed out Annaly Capital Management, AG Mortgage Investment Trust, and Dynex Capital.
I have a steady income with a 12% return from Annaly Capital.
Annaly Capital Management might gain from lower interest rates in 2025, but ongoing high rates could be a challenge because of rising inflation. In the fourth quarter of 2024, the trust saw a notable improvement in its net interest margin due to increased asset yields and slower growth in interest expenses, which positively affected its dividend payments. Currently, Annaly's stock is trading close to its book value, and if rates decrease, there is a chance for book value growth, which would help its mortgage-backed securities portfolio.
NLY's varied investment strategy and strong liquidity appear promising. Keep reading to find out if it's a good time to buy the stock or if you should wait for a better opportunity.
NLY's earnings for the fourth quarter show a decrease in its book value per share compared to last year. However, an increase in net interest income and the average yield on interest-earning assets provides some positive news.