Company: NLY-PF
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001043219-25-000012
Chunk: 185

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 185
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. Substantially all of the Agency MBS have an actual or implied credit rating that is the same as that of the U.S. government. The investments do not require an allowance for credit losses because we currently have the ability and intent to hold the investments to maturity or for a period of time sufficient for a forecasted market price recovery up to or beyond the cost of the investments, and it is not more likely than not that we will be required to sell the investments before recovery of the amortized cost bases, which may be maturity. Also, we are guaranteed payment of the principal and interest amounts of the securities by the respective issuing Agency.

Financial Condition

Total assets were $125.9 billion and $103.6 billion at September 30, 2025 and December 31, 2024, respectively. The change was primarily due to increases in securities of $15.3 billion, securitized residential whole loans of consolidated VIEs of $7.5 billion, cash and cash equivalents of $608.7 million, mortgage servicing rights of $567.0 million, and residential mortgage loans of $461.4 million, partially offset by decreases in receivables for unsettled trades of $2.0 billion, derivative assets of $177.5 million and principal and interest receivable of $109.6 million. Our portfolio composition, net equity allocation and debt-to-net equity ratio by asset class were as follows at September 30, 2025.

 Agency MBSResidential Credit (1)MSRTotal Assets(dollars in thousands)Fair value$83,317,819 $35,265,514 $3,512,014 $122,095,347 Implied market value of derivatives (2)3,991,915 — — 3,991,915 DebtRepurchase agreements70,609,233 4,509,730 — 75,118,963 Implied cost basis of derivatives (2)3,981,439 — — 3,981,439 Other secured financing— — 1,025,000 1,025,000 Debt issued by securitization vehicles— 26,601,790 — 26,601,790 Participations issued— 1,831,657 — 1,831,657 U.S. Treasury securities sold, not yet purchased2,472,