Company: NLY-PF
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001628280-25-005451
Chunk: 32

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 32
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 (1)Average EconomicCost ofInterestBearingLiabilities *AverageOne-MonthTerm SOFR AverageSix-MonthTerm SOFRAverageOne-Month Term SOFRRelative toAverage Six-Month Term SOFRAverage Economic Costof InterestBearingLiabilitiesRelative toAverage One-Month Term SOFRAverage Economic Costof InterestBearingLiabilitiesRelative toAverage Six-Month Term SOFR For the years ended(dollars in thousands)December 31, 2024$85,294,238 $88,855,046 $3,338,791 3.91 %5.12 %4.92 %0.20 %(1.21 %)(1.01 %)December 31, 2023$74,962,858 $77,038,467 $2,257,912 3.01 %5.07 %5.22 %(0.15 %)(2.06 %)(2.21 %)December 31, 2022$64,512,269 $68,307,606 $943,574 1.46 %1.85 %2.52 %(0.67 %)(0.39 %)(1.06 %)* Represents a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section for additional information.(1) Economic interest expense is comprised of GAAP interest expense, the net interest component of interest rate swaps, and, beginning with the quarter ended June 30, 2024, net interest on initial margin related to interest rate swaps, which is reported in Other, net in the Company’s Consolidated Statements of Comprehensive Income (Loss). Prior period results have not been adjusted in accordance with this change as the impact is not material. Net interest on variation margin related to interest rate swaps was previously and is currently included in the Net interest component of interest rate swaps in the Company's Consolidated Statements of Comprehensive Income (Loss) for all periods presented.

2024 Compared with 2023

Economic interest expense increased by $1.1 billion for the year ended December 31, 2024 compared to the same period in 2023. The change was primarily due to higher average interest bearing liabilities from an increase in securitized debt balances due to the 21 securitizations closed during the year ended December 31, 2024 combined with higher repurchase agreement balances and