Annaly Capital Management, Inc. (NLY)

Annaly Capital Management, Inc. is one of the largest mortgage real estate investment trusts (mREITs) in the United States, led by CEO and President David Finkelstein. The company’s mission is to "generate net income for distribution to shareholders through prudent management of its diversified investment portfolio." Annaly holds a strategic position as a major provider of liquidity to the residential mortgage market, investing in agency mortgage-backed securities (MBS), residential credit, and mortgage servicing rights (MSR). Annaly Capital Management, Inc. stock is a premier "Income and Yield" play, offering one of the highest dividend yields in the S&P 500 through its leveraged investment model.

The company’s business operations are centered on its "Diversified Capital" strategy, which allows it to pivot between government-backed agency securities and higher-yielding residential credit depending on the interest rate environment. In late 2025, Annaly reported a significant increase in its MSR portfolio, which serves as a natural hedge against rising interest rates. The company’s future strategy involves "Balance Sheet Resiliency," utilizing specialized hedging instruments to protect its book value during periods of market volatility. For 2026, the firm is prioritizing the expansion of its specialized "On-Balance Sheet" lending for non-QM (qualified mortgage) borrowers. Its competitive moat is its massive scale and its deep access to multiple funding sources, including the repo market and the securitization market, which smaller mREITs often struggle to access.

NLY is listed on the New York Stock Exchange under the ticker NLY stock. It is a cornerstone holding for income-focused investors who seek exposure to the US housing finance market without the operational risk of a bank. Financial analysts and macro-economic experts monitor the NLY stock price as a primary indicator of the health of the mortgage market and the impact of Federal Reserve policy on credit spreads. By December 2025, Annaly stands as a sophisticated and vital player in the financial markets, utilizing its capital expertise to deliver consistent income to its shareholders.