Company: NLY-PF
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001628280-25-005451
Chunk: 9

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 9
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ual Obligations with Unconsolidated Entities67Capital Management67Stockholders’ Equity67Capital Stock67Leverage and Capital68Risk Management69Risk Appetite69Governance69Description of Risks71Liquidity and Funding Risk Management71Funding71Excess Liquidity73Maturity Profile74Stress Testing75Liquidity Management Policies75Investment/Market Risk Management75Credit Risk Management76Counterparty Risk Management77Operational Risk Management78Compliance, Regulatory and Legal Risk Management79Critical Accounting Estimates79Valuation of Financial Instruments79Residential Securities79Residential Mortgage Loans80MSR80Interest Rate Swaps80Revenue Recognition81Consolidation of Variable Interest Entities81Use of Estimates81Glossary of Terms82

50

ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIESItem 7. Management’s Discussion and Analysis

Overview

We are a leading diversified capital manager with investment strategies across mortgage finance. Our principal business objective is to generate net income for distribution to our stockholders and optimize our returns through prudent management of our diversified investment strategies. We are an internally-managed Maryland corporation founded in 1997 that has elected to be taxed as a REIT. Our common stock is listed on the New York Stock Exchange under the symbol “NLY.”

We use our capital coupled with borrowed funds to invest primarily in real estate related investments, earning the spread between the yield on our assets and the cost of our borrowings and hedging activities.

Our three investment groups are primarily comprised of the following: 

Investment GroupsDescriptionAnnaly Agency GroupInvests in Agency mortgage-backed securities (“MBS”) collateralized by residential mortgages which are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae and complementary investments within the Agency market, including Agency commercial MBS.Annaly Residential Credit GroupInvests primarily in non-Agency residential whole loans and securitized products within the residential and commercial markets.Annaly Mortgage Servicing Rights GroupInvests in mortgage servicing rights (“MSR”), which provide the right to service residential mortgage loans in exchange for a portion of the interest payments made on the loans.

For a full discussion of our business, refer to the section titled “Business Overview” of Part I, Item 1. “Business” and see the Note titled "Segments" in the Notes to the Consolidated Financial Statements included in Item 15. "Exhibits, Financial Statement Schedules."

Business Environment

U.S. real economic growth remained at its above-trend pace in