Company: NLY-PF
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001043219-25-000012
Chunk: 53

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 53
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-average lives of the underlying debt instruments.(2) Non-recourse to Annaly. 

Excess Liquidity

Our primary source of liquidity is the availability of unencumbered assets which may be provided as collateral to support additional funding needs. We target minimum thresholds of available, unencumbered assets to maintain excess liquidity. The following table illustrates our asset portfolio available to support potential collateral obligations and funding needs. 

Assets are considered encumbered if pledged as collateral against an existing liability, and therefore are no longer available to support additional funding. An asset is considered unencumbered if it has not been pledged or securitized. The following table also provides the carrying amount of our encumbered and unencumbered financial assets at September 30, 2025:

 Encumbered AssetsUnencumbered AssetsTotalFinancial assets(dollars in thousands)Cash and cash equivalents$1,776,349 $320,347 $2,096,696 Reverse repurchase agreements (1)35,004 — 35,004 Investments, at carrying value (2)Agency mortgage-backed securities75,369,462 5,610,031 80,979,493 Credit risk transfer securities253,257 77,390 330,647 Non-agency mortgage-backed securities757,761 634,432 1,392,193 Residential mortgage loans (3)33,177,126 343,482 33,520,608 MSR3,164,697 311,484 3,476,181 Interests in MSR— 35,833 35,833 Other assets (4)— 50,506 50,506 Total financial assets$114,533,656 $7,383,505 $121,917,161 (1) The collateral received in connection with reverse repurchase agreements was repledged as of September 30, 2025.(2) The amounts reflected in the table above are on a settlement date basis and may differ from the total positions reported in the Consolidated Statements of Financial Condition.(3) Includes assets transferred or pledged to securitization vehicles.(4) Includes commercial real estate investments and interests in certain joint ventures.

We maintain liquid assets in order to satisfy our current and future obligations in normal and stressed operating environments. These are held as the primary means of liquidity risk mitigation. The composition of our liquid assets is also considered and is subject to certain parameters.