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- **Record Performance**: Q4 2025 economic return of 8.6%, full-year return of 20.2%, and 40% total shareholder return.
- **Portfolio Growth**: 30% portfolio expansion in 2025, driven by $2.9 billion in equity raises.
- **Dividend Safety**: EAD of $0.74 exceeded dividend, with confidence in mid-teens 2026 returns.
- **Strategic Shifts**: Increasing capital allocation to Residential Credit and MSR, targeting 30% and 20% of capital respectively.
- **MSR Resilience**: MSR portfolio CPR of 4.6% and 3.28% weighted average note rate provide durable cash flows.

**【CEO Summary Section】**
- Annaly reported an 8.6% economic return for Q4 2025, with all three businesses (Agency, Residential Credit, MSR) contributing positively. Full-year 2025 economic return was 20.2%, and total shareholder return was 40%.
- The company grew its portfolio by 30% in 2025, raising $2.9 billion in equity, including $560 million through an ATM in Q4. Economic leverage remained conservative at 5.6x.
- Agency MBS portfolio reached $93 billion, up $22 billion year-over-year. Residential Credit portfolio grew to $8 billion, and MSR portfolio expanded to $3.8 billion.
- Onslow Bay franchise achieved record Q4 performance, with $6.4 billion in locks and $4.6 billion in securitizations, generating $570 million in retained assets.
- MSR portfolio CPR was 4.6%, with a weighted average note rate of 3.28%, providing durability in a low-rate environment.

**【CFO Financial Commentary】**
- Book value per share increased 5% to $20.21, after accounting for the $0.70 dividend. Earnings available for distribution (EAD) rose to $0.74, outpacing the dividend.
- Net interest spread (excluding PAA) improved 18 bps year-over-year to 1.40%, driven by higher repo rates and portfolio growth.
- Repo rate averaged 4.2% in Q4, down 34 bps from the prior quarter. Economic leverage remained at 5.6x, with $7.8 billion in unencumbered assets.
- Operating expense ratio (OpEx) improved to 1.31% for the quarter and 1.42% for the year, reflecting operational efficiency.

**【Q&A Highlights】**
- **Portfolio Returns & Dividend Safety**: CEO David Finkelstein stated the company expects to achieve mid-teens returns in 2026, with Agency MBS spreads tightening but still attractive relative to swaps. The dividend is secure, with Q4 EAD exceeding the dividend by $0.04.
- **MSR Strategy**: The company is expanding its flow MSR business, active across all GSE platforms. Low coupon MSR purchases are insulated from prepayment risk, with 6% and 6.5% coupon pools prepaying 40% slower than generic collateral.
- **G-fee Policy**: Annaly supports targeted G-fee cuts for purchased loans to aid first-time homebuyers, while cautioning against broad cuts that could widen MBS spreads.
- **Capital Allocation**: The company aims to grow Residential Credit and MSR portfolios beyond their 20% target allocation, with a long-term goal of 50% Agency, 30% Residential Credit, and 20% MSR.
- **GSE Buying Impact**: GSE MBS purchases may stabilize spreads but have not yet meaningfully impacted swap markets. The company anticipates lower hedging costs due to reduced volatility.

Annaly Capital Management, Inc. (NLY) Q4 2025 Earnings Call Transcript

- **Record Returns**: 8.1% Q3 economic return and 11.5% YTD, driven by Agency MBS spread tightening and Residential Credit growth.
- **Capital Deployment**: $1 billion capital raise and first preferred issuance since 2019 support diversified portfolio expansion.
- **Resilient Businesses**: MSR portfolio stability (sub-5 CPR), Residential Credit leadership (8% non-QM market share), and Agency MBS technical strength (50% fund inflow growth).
- **Efficiency & Liquidity**: Lowest OpEx-to-equity ratio in sector (1.31%) and $8.8 billion unencumbered assets provide flexibility for future growth.

**【CEO Summary Section】**
- Annaly achieved an 8.1% quarterly economic return and 11.5% year-to-date return, marking 8 consecutive quarters of positive returns.
- Agency MBS portfolio grew to $87 billion in market value, driven by lower interest rate volatility and improved technicals (e.g., 50% higher fixed income fund inflows).
- Residential Credit business expanded to $6.9 billion in market value, with Onslow Bay platform generating $473 million in retained securities through 8 transactions.
- MSR portfolio increased to $3.5 billion, benefiting from stable cash flows (sub-5 CPR) and new partnerships like PennyMac.
- Capital raise of $1 billion (including $800 million via ATM program) and first preferred issuance since 2019.

**【CFO Financial Commentary】**
- Book value per share increased 4.3% to $19.25, with EAD of $0.73 per share exceeding dividend payout.
- Net interest spread ex-PAA improved to 1.5%, driven by MSR and Residential Credit growth.
- Operating expense ratio (OpEx-to-equity) of 1.31% remained among the lowest in the sector.
- Liquidity enhanced with $8.8 billion in unencumbered assets, including $5.9 billion in Agency MBS and $1.5 billion in MSR advances.

**【Q&A Key Highlights】**
- **Agency MBS Strategy**: Tighter spreads (8-12bps) and lower volatility supported returns; portfolio biased toward intermediate coupons and specified pools to mitigate prepayment risk.
- **MSR Supply**: Bulk purchases of $17 billion in UPB during Q3, with subsequent $9 billion pipeline; new PennyMac partnership added $12 billion in low note rate MSR.
- **Residential Credit Outlook**: Non-QM market share at 8% of locks (vs. 2-3% in 2023), with 2025 issuance on track for $65-70 billion vs. $47 billion in 2024.
- **Fed Policy Risks**: Neutral rate expectations vs. Fed's 50bps above neutral; cautious on duration gap but open to convexity trades in low-volatility environment.
- **GSE Participation**: Limited current impact, but potential long-term stabilizer of spreads if regulatory reforms allow broader GSE participation.

Annaly Capital Management, Inc. (NLY) Q3 2025 Earnings Call Transcript

- **Positive Economic Return**: 0.7% Q2 economic return vs. $0.70 dividend, with 3.7% year-to-date TSR.
- **Agency Expansion**: $80B portfolio growth, 4.5B new purchases hedged, targeting spread tightening post-Fed cuts.
- **Credit Portfolio Strength**: 764 FICO, 62% LTV, 1.85% delinquency, 70% retained asset exposure.
- **Leverage Discipline**: 5.8x leverage, $750M ATM capital deployment, no urgency to increase leverage.
- **Fed Rate Outlook**: Anticipate 2H rate cuts, supportive of agency and MSR performance.

**【CEO Summary Section】**
- **Economic Return & Dividend Performance**: Delivered a 0.7% Q2 economic return, out-earning the dividend of $0.70, with a total shareholder return of 10% year-to-date. 
- **Agency MBS Growth**: Agency portfolio expanded to $80B (6% QoQ), driven by attractive spreads and disciplined capital deployment. Duration managed within narrow bands, with 4.5B in new purchases hedged.
- **Residential Credit Resilience**: $6.6B portfolio maintained high credit quality (764 FICO, 62% LTV), with 1.85% D60+ delinquency rate. Onslow Bay securitized $3.6B in Q2, 70% of credit exposure in retained assets.
- **MSR Portfolio Stability**: $3.3B MSR market value with 4.6% CPR, 3.24% WAC, and 6% YoY escrow growth. Valuation benefits from float income and subservicing partnerships.
- **Leverage & Capital Management**: Leverage at 5.8x, with $750M raised via ATM program. Focus on accretive capital deployment and maintaining liquidity flexibility.

**【CFO Financial Commentary】**
- **Book Value & Earnings**: Book value per share $18.45 (3% QoQ decline), EAD of $0.73 exceeded dividend. Net interest spread ex-PAA improved to 1.47% (vs. 1.24% YoY), margin to 1.71%.
- **Funding Diversification**: $1.9B non-mark-to-market capacity (45% of total), $5B repo growth. MSR and resi credit facilities expanded by $500M, with 40% utilization.
- **Cost Efficiency**: Repo rates at 4.53%, lower swap runoff offset interest income growth. Net interest income ex-PAA up 16% YoY.

**【Q&A Key Highlights】**
- **Dividend Sustainability**: Confident in covering dividend, with 7+ consecutive quarters of positive returns. Economic return target aligns with dividend yield.
- **Portfolio Volatility Management**: Low leverage (5.8x) allowed disciplined rate risk management. Capital raised in Q2 deployed accretively, with no urgency to increase leverage.
- **Resi Credit Risk**: Portfolio stress-tested for 20% HPA decline, only 4% of loans underwater. Tightened credit standards (764 FICO, 68% LTV) mitigate housing slowdown risks.
- **GSE Reform Outlook**: Expect regulatory tailwinds for non-agency MBS, with 20% of GSE loans potentially migrating to private label. MSR valuations supported by tech-driven cost reductions.
- **Agency Demand Drivers**: Fixed income fund inflows ($50B+ Q2) and CMO issuance ($25-30B/Q) offset muted bank demand. Fed rate cuts could unlock bank participation.


Annaly Capital Management, Inc. (NLY) Q2 2025 Earnings Call Transcript

- **Q1 Performance Strong**: 3% economic return driven by agency MBS, despite April volatility. Economic leverage at 5.7x, lowest in a decade.
- **Earnings Growth**: EAD up to $0.72 per share, supported by lower repo costs and higher yields.
- **Liquidity Buffer**: $7.5B in liquid assets and extended repo days (50) enhance resilience.
- **MSR Stability**: <5% exposure to >5% note rates, with 3.4% CPR and rising escrow float income.
- **Regulatory Tailwind**: Anticipated Basel reforms may ease funding constraints and widen swap spreads.


**【CEO Opening Remarks】**
- Q1 2025 delivered a 3% economic return, with agency MBS driving performance. Capital allocation shifted to agency (61% of portfolio) amid market volatility.
- Economic leverage at 5.7x, lowest in a decade, supported by $7.5B in liquid assets. MSR portfolio remains stable with <5% exposure to >5% note rates.
- Agency MBS spreads widened post-quarter due to trade policy uncertainty, but fundamentals (low prepayment, stable funding) remain favorable.

**【CFO Financial Highlights】**
- EAD (Earnings Available for Distribution) of $0.72 per share, up from $0.65, driven by lower repo rates (4.56% vs 4.93%) and higher investment yields.
- Book value per share $19.02, down <1% QoQ. Agency, resi credit, and MSR contributed $1.89, $0.08, and $0.05 per share gains, offset by $2.14 hedge losses.
- Repo days extended to 50 (from 32), with $5.8B in committed credit facilities. Unencumbered assets at $6.3B provide liquidity buffer.

**【Q&A Key Themes】**
- **Market Volatility**: April spreads widened due to trade policy uncertainty, but agency MBS OAS widened to attractive levels. MSR valuations modestly up on steeper SOFR curve.
- **Capital Allocation**: Agency MBS favored due to wider spreads; resi credit securitization (e.g., HELOCs) delivers mid-teens ROEs. MSR growth episodic, dependent on pricing.
- **Housing Market**: HPA moderating but fundamentals (low delinquencies, tight underwriting) support stability. Regional disparities noted (South weakness vs Northeast strength).
- **Regulatory Outlook**: Expect Basel III reforms and SLR changes to ease balance sheet constraints, potentially widening swap spreads.
- **GSE Privatization**: Smaller GSE footprint could benefit agency and resi credit sectors, but timeline uncertain.


Annaly Capital Management (NLY)-1 May 25-2025 Q1 Earnings call transcript

- **Q4 Economic Performance**: 1.3% quarterly economic return (11.9% full year), driven by diversified housing finance portfolio.
- **Capital Efficiency**: 5.5x economic leverage, $1.6B ATM capital raise, $0.72 EAD vs. $0.65 dividend.
- **MSR Growth Engine**: $385M Q1 MSR settlement, 25% YoY portfolio growth to $3.3B market value.
- **Credit Leadership**: Residential credit securitization volume up 32% QoQ to $2.3B, lowest delinquency rate among top 10 non-QM issuers.
- **2025 Outlook**: Agency spreads attractive, MSR bulk activity elevated, non-QM origination market expansion.

**【CEO Opening Remarks】**
- Q4 2024 Economic Return: 1.3% (11.9% full year), driven by positive contributions from all 3 businesses (Agency MBS, Residential Credit, MSR). 
- Capital Deployment: $385M in MSR settled in Q1 2025, total capital raised via ATM in 2024: $1.6B.
- Portfolio Leverage: Economic leverage reduced to 5.5x, reflecting lower-levered credit and MSR businesses.
- Key Metrics: 
  - Agency MBS: $71B market value, 59% of capital allocation.
  - Residential Credit: $7B market value, 22% of capital allocation.
  - MSR: $3.3B market value (including unsettled), 19% of capital allocation.

**【CFO Financial Highlights】**
- Q4 Earnings Available for Distribution (EAD): $0.72 (vs. dividend of $0.65), up $0.06 QoQ.
- Key Drivers: 
  - Lower borrowing costs (repo rate down 57bps to 4.3%).
  - Improved net interest margin (NIM) ex PAA: 1.71% (up 19bps QoQ).
  - MSR portfolio valuation up 3% to 5.7x multiple.
- Expense Management: OpEx to equity ratio 1.39% (Q4) / 1.44% (full year), reflecting disciplined cost control.
- Liquidity: $6.9B in assets available for financing, including $5.8B unencumbered Agency MBS.

**【Q&A Key Takeaways】**
1. **Dividend Sustainability**: 2025 dividend "feels safe" with current run rate of $0.72 EAD.
2. **MSR Competitive Dynamics**: Lower origination volumes increase lender need to monetize MSR; Annaly's $28B UPB pipeline positions it as top conforming MSR buyer.
3. **GSE Reform Impact**: Potential GSE footprint reduction could open $140B+ non-core credit market; Annaly's Onslow Bay platform leads non-QM DSCR origination.
4. **Market Volatility Outlook**: Agency MBS spreads stable (1-2bps daily volatility), long-end yield curve risks hedged with treasury futures.
5. **Non-Agency Growth**: 20%+ YoY MSR growth target; HELOC/second lien pipeline expected to expand in 2025.


Annaly Capital Management (NLY)-30 Jan 25-2024 Q4 Earnings call transcript

Annaly Capital Management (NLY)-25 Jul 24-2024 Q2 Earnings call transcript

Annaly Capital Management (NLY)-25 Apr 24-2024 Q1 Earnings call transcript

- **Strong Q4 Performance**: 10.1% economic return, outearning dividend with $0.68 EAD, and 6% annualized return.
- **Strategic Shift to Credit**: Increased resi credit (+20%) and MSR (+18%) allocations for higher stability and returns.
- **Leverage Caution**: Maintained at 5.7x, with flexibility to increase if market conditions improve.
- **MSR Opportunity**: Top nonbank buyer with $800B 2023 market, targeting low-note-rate collateral.
- **Fed Policy Impact**: Anticipate rate cuts mid-2024 and tighter agency spreads in a stable rate environment.

**【Management Opening Remarks】**
- Announced the Fourth Quarter 2023 Earnings Call, emphasizing forward-looking statements' risks and compliance with SEC filings.
- Highlighted the availability of supporting materials, including the investor presentation and supplemental info.
- Introduced key executives: David Finkelstein (CEO/CIO), Serena Wolfe (CFO), and other business leaders.

**【CEO Commentary】**
- **Q4 Performance**: Delivered a 10.1% economic return, outearning the dividend with $0.68 EAD per share, and reduced leverage to 5.7x.
- **Macro Outlook**: Focused on Fed policy normalization, inflation moderation, and housing sector resilience.
- **Portfolio Strategy**: Rotated into higher-coupon agency MBS, expanded Agency CMBS to $3.2B, and increased resi credit and MSR allocations.
- **2024 Outlook**: Optimistic on agency spreads tightening, MSR stability, and residential credit growth via Onslow Bay securitization.

**【CFO Financial Commentary】**
- **Financial Highlights**: Book value rose to $19.44/share, EAD of $0.68/Q4, and 6% annualized return despite volatility.
- **Portfolio Yields**: Agency CMBS and resi credit drove NIM to 158bps (ex-PAA), up 10bps QoQ.
- **Cost Management**: Total cost of funds increased 14bps to 3.42%, but repo balances declined to $62B.
- **Liquidity**: $5.2B unencumbered assets, $3.6B warehouse capacity (38% utilized), and $1B MSR pledged for future draws.

**【Q&A Highlights】**
- **Capital Allocation**: Shift to credit assets (resi credit +20%, MSR +18%) due to higher ROEs and stability.
- **Dividend Sustainability**: EAD expected to match dividend; no Board action to cut dividend in 2024.
- **Leverage Strategy**: Conservative at 5.7x, with potential to increase if spreads widen or rates cut.
- **MSR Outlook**: Active market with $800B 2023 trades; Annaly as top nonbank buyer, targeting low-note-rate collateral.
- **CRE Risks**: Minimal exposure; sold CMBX and reduced to $220M AAA CLOs, focusing on multifamily.


Annaly Capital Management (NLY)-8 Feb 24-2023 Q4 Earnings call transcript

- **Strong Performance Despite Volatility**: 3% Q2 economic return, 6% YTD, with dividend outearn despite 5.8x leverage.
- **Housing Resilience**: Home prices up 4.7% YTD, supported by low inventory (45% below 2019 levels).
- **Strategic Portfolio Moves**: $5 billion agency MBS reduction, $350 million MSR growth, and $1.5 billion residential credit securitizations.
- **Liquidity and Leverage**: $6 billion unencumbered assets, cautious optimism on MBS spread tightening (15bps potential).
- **Business Growth**: MSR targeting 20% of assets, residential credit pipeline FICO 748, LTV 68%.
- **Fed Policy Outlook**: Rate cuts with balance sheet runoff may support MBS basis in disinflationary scenario.

**【CEO Summary Section】**
- Annaly achieved a 3% economic return for Q2 2023, with a 6% year-to-date return, despite market volatility. Leverage was reduced from 6.4x to 5.8x, yet the company outearned its dividend.
- The U.S. economy showed resilience with strong labor markets and housing price increases (4.7% YTD), contrary to expectations of decline. Inventory constraints (45% below 2019 levels) supported home prices.
- The company tactically reduced agency MBS exposure by $5 billion early in the quarter, then opportunistically deployed capital. Average coupon rose to 4.3%, with a focus on higher coupons and specified pools for better prepayment profiles.
- Residential credit spreads tightened (CRT: -95bps, non-QM: -75bps), with $1.5 billion in securitizations and $162 million in retained assets. MSR grew by $350 million (19%), with low prepayment speeds (below 4 CPR) and stable cash flows.
- Outlook: Expecting a more accommodative environment for MBS, with potential spread tightening. Residential credit and MSR growth will be balanced with responsible leverage.

**【CFO Financial Commentary】**
- Book value remained stable at $20.73 per share. EAD was $0.72 per share, consistent with Q1, despite higher repo costs (277bps vs. 234bps). Average yield ex-PAA rose to 4.22% (up 26bps), driven by coupon rotation.
- Net interest margin (NIM) ex-PAA was 166bps (down 10bps), due to rising repo rates. Swap portfolio mitigated costs, with a net receive rate of 255bps.
- Liquidity improved with $6 billion in unencumbered assets, including $1.7 billion in unused warehouse capacity for credit and MSR businesses.
- MSR and residential credit growth was supported by dedicated warehouse facilities at competitive terms.

**【Q&A Key Highlights】**
- **Returns Across Businesses**: Agency MBS ROE mid-teen, residential credit low-mid teen, MSR unlevered 10-11% (levered 15%).
- **Leverage Strategy**: Current leverage 5.8x, ample liquidity to add MBS if spreads widen. Spread duration improved (10.4% appreciation for 25bps tightening vs. 10.9% last quarter).
- **MSR Growth**: $350 million Q2 purchases, targeting 20% of assets over time. Low WAC and stable prepayments justify expansion.
- **Residential Credit**: Securitization volume $3 billion YTD, correspondent channel lock volume $1.5 billion Q2. Pipeline FICO 748, LTV 68%.
- **Fed Policy**: Potential rate cuts with balance sheet runoff could support MBS basis. Disinflationary environment may delay basis trade timing.
- **CMBS Exposure**: $340 million AAA CRE CLO, opportunistic with 96% multifamily focus.


Actual											0.84	1.08	1.28	1.2	1.16	1.2	1.12	1.12	1.12	1.2	1.06	0.89	0.81	0.72	0.66	0.68	0.64	0.68	0.66	0.72	0.72	0.73	0.73	0.74
Forecast											0.8295	0.8913	1.0492	1.1519	1.0542	1.0857	1.0652	1.0713	1.0133	0.9893	0.9896	0.8819	0.7595	0.7423	0.6761	0.6454	0.6445	0.65	0.6677	0.6671	0.6969	0.7134	0.7211	0.7298
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+1.27%	+21.17%	+22.00%	+4.18%	+10.04%	+10.53%	+5.14%	+4.55%	+10.53%	+21.30%	+7.11%	+0.92%	+6.65%	-3.00%	-2.38%	+5.36%	-0.70%	+4.62%	-1.15%	+7.93%	+3.31%	+2.33%	+1.23%	+1.40%

Actual	--	--	--	--	--	--	--	--	--	--	66.48M	414.00M	455.28M	448.07M	702.66M	324.53M	378.75M	387.61M	2.10B	922.77M	-240.37M	-843.89M	-787.47M	218.38M	-516.78M	-350.60M	502.80M	47.99M	120.14M	527.46M	186.64M	110.83M	885.58M	1.06B
Forecast	--	--	--	--	--	--	--	--	--	--	412.52M	399.12M	445.06M	459.59M	501.44M	421.01M	329.50M	388.30M	419.13M	365.88M	396.91M	361.94M	196.97M	363.86M	286.00M	-120.16M	548.05M	462.85M	495.16M	705.94M	440.08M	502.99M	546.62M	697.21M
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-83.88%	+3.73%	+2.30%	-2.51%	+40.13%	-22.91%	+14.95%	-0.18%	+400.13%	+152.21%	-160.56%	-333.16%	-499.80%	-39.98%	-280.69%	-191.77%	-8.26%	-89.63%	-75.74%	-25.28%	-57.59%	-77.97%	+62.01%	+52.24%

NLY

NLY fundamentals

NLY Q4 2025 Earnings

Earnings Call

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NLY

NLY fundamentals

NLY Q4 2025 Earnings

Earnings Call

NLY Earnings Call Summary for Q4/20259:00 AM on Jan 29, 2026

NLY Earnings Call Summary for Q3/20259:00 AM on Oct 23, 2025

NLY Earnings Call Summary for Q2/20259:00 AM on Jul 24, 2025

NLY Earnings Call Summary for Q1/20259:00 AM on May 1, 2025

NLY Earnings Call Summary for Q4/20249:00 AM on Jan 30, 2025

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