Company: NLY-PF
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001043219-25-000012
Chunk: 170

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 170
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 financial obligations under periods of market stress. To maintain our desired capital profile, we utilize a mix of debt and equity funding. Debt funding may include the use of repurchase agreements, loans, securitizations, participations issued, lines of credit, asset backed lending facilities, corporate bond issuance, convertible bonds or other liabilities. Equity capital primarily consists of common and preferred stock.

Our economic leverage ratio is computed as the sum of recourse debt, cost basis of TBA derivatives outstanding, and net forward purchases (sales) of investments divided by total equity. Recourse debt consists of repurchase agreements, other secured financing, and U.S Treasury securities sold, not yet purchased. Debt issued by securitization vehicles and participations issued are non-recourse to us and are excluded from economic leverage.

The following table presents a reconciliation of GAAP debt to economic debt for purposes of calculating our economic leverage ratio for the periods presented:

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ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIESItem 2. Management’s Discussion and Analysis 

As ofSeptember 30, 2025September 30, 2024Economic leverage ratio reconciliation(dollars in thousands)Repurchase agreements$75,118,963 $64,310,276 Other secured financing1,025,000 600,000 Debt issued by securitization vehicles26,601,790 18,709,118 Participations issued1,831,657 467,006 U.S. Treasury securities sold, not yet purchased2,442,570 2,043,519 Total GAAP debt$107,019,980 $86,129,919 Less Non-recourse debt:Debt issued by securitization vehicles$(26,601,790)$(18,709,118)Participations issued(1,831,657)(467,006)Total recourse debt$78,586,533 $66,953,795 Plus / (Less):Cost basis of TBA derivatives3,981,439 3,333,873 Payable for unsettled trades2,604,278 1,885,286 Receivable for unsettled trades(185,916)(766,341)Economic debt *$84,986,334 $71,406,613 Total equity$14,996,579 $12,539,949 Economic leverage ratio *5.7:15.7:1*