Company: NLY-PF
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001043219-25-000012
Chunk: 150

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 150
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 of Operations43Net Income (Loss) Summary44Non-GAAP Financial Measures46Earnings Available for Distribution, Earnings Available for Distribution Attributable to Common Stockholders, Earnings Available for Distribution Per Average Common Share and Annualized EAD Return on Average Equity46Premium Amortization Expense48Economic Leverage and Economic Capital Ratios48Interest Income (excluding PAA), Economic Interest Expense and Economic Net Interest Income (excluding PAA)49Experienced and Projected Long-term CPR51Average Yield on Interest Earning Assets (excluding PAA), Net Interest Spread (excluding PAA), Net Interest Margin (excluding PAA), and Average Economic Cost of Interest Bearing Liabilities51Economic Interest Expense and Average Economic Cost of Interest Bearing Liabilities52Other Income (Loss)53General and Administrative Expenses55Return on Average Equity55Unrealized Gains and Losses - Available-for-Sale Investments55Financial Condition56Residential Securities56Contractual Obligations59Commitments and Contractual Obligations with Unconsolidated Entities59Capital Management59Stockholders’ Equity60Capital Stock60Leverage and Capital61Risk Management62Risk Appetite62Governance62Description of Risks63Liquidity and Funding Risk Management63Funding63Excess Liquidity65Maturity Profile and Interest Rate Sensitivity66Stress Testing67Liquidity Management Policies67Investment/Market Risk Management67Credit Risk Management68Counterparty Risk Management69Operational Risk Management69Compliance, Regulatory and Legal Risk Management71Critical Accounting Estimates71Valuation of Financial Instruments71Residential Securities71Residential Mortgage Loans72MSR72Interest Rate Swaps72Revenue Recognition72Consolidation of Variable Interest Entities73Use of Estimates73Glossary of Terms74

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ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIESItem 2. 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.

For a full discussion of