Company: NLY-PF
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001628280-25-036724
Chunk: 194

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 194
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 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 June 30, 2025:

 Encumbered AssetsUnencumbered AssetsTotalFinancial assets(dollars in thousands)Cash and cash equivalents$1,791,768 $267,077 $2,058,845 Investments, at carrying value (1)Agency mortgage-backed securities67,094,722 4,442,406 71,537,128 Credit risk transfer securities375,949 38,098 414,047 Non-agency mortgage-backed securities776,434 553,507 1,329,941 Residential mortgage loans (2)30,180,529 563,533 30,744,062 MSR3,245,125 36,065 3,281,190 Other assets (3)— 51,929 51,929 Total financial assets$103,464,527 $5,952,615 $109,417,142 (1) 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.(2) Includes assets transferred or pledged to securitization vehicles.(3) 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. The composition is monitored for concentration risk, including in respect of our deposits of our cash and cash equivalents, and asset type. We believe the assets we consider liquid can be readily converted into cash, through liquidation or by being used as collateral in financing arrangements (including as additional collateral to support existing financial arrangements). Our balance sheet also generates liquidity on an