Company: NLY-PF
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001628280-25-036724
Chunk: 219

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 219
---
 CRT securities and non-Agency mortgage-backed securities.Residential Transition Loan (“RTL”)A short-term loan primarily for the purpose of financing the construction or renovation of a residential property.ResidualIn  securitizations, the residual is the tranche that collects any cash flow from the collateral that remains after obligations to the other tranches have been met.Return on Average EquityCalculated by taking earnings divided by average stockholders’ equity.Reverse Repurchase AgreementRefer to Repurchase Agreement. The buyer of securities effectively provides a collateralized loan to the seller.Risk Appetite StatementDefines the types and levels of risk we are willing to take in order to achieve our business objectives, and reflects our risk management philosophy.SSecondary MarketOngoing market for bonds previously offered or sold in the primary market.Secured Overnight Financing Rate (“SOFR”)Broad measure of the cost of borrowing cash overnight collateralized by Treasury securities and was chosen by the Alternative Reference Rate Committee as the preferred benchmark rate to replace dollar LIBOR.Settlement DateThe date securities must be delivered and paid for to complete a transaction.Short-Term DebtGenerally, debt which matures in one year or less. However, certain securities that mature in up to three years may be considered short-term debt.

77

ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIESItem 2. Management’s Discussion and Analysis 

Small Balance Commercial (“SBC”)A business-purpose loan secured by commercial or mixed-use real estate or by 1-4 unit residential properties owned for investment purposes. The average loan size of SBC securitizations is generally less than $1mm, in contrast to large balance commercial loans which generally start at $40mm and above.SpreadWhen buying or selling a bond through a brokerage firm,  investors will be charged a commission or spread, which is the difference between the market price and cost of purchase, and sometimes a service fee. Spreads differ based on several factors including liquidity.TTarget AssetsIncludes Agency mortgage-backed securities, to-be-announced forward contracts, CRT securities, MSR, non-Agency mortgage-backed securities, residential mortgage loans, and commercial real estate investments.Tangible Economic ReturnRefers to the Company’s change in tangible book value (calculated by summing common stock, additional paid-in capital, accumulated other comprehensive income (loss) and accumulated deficit less intangible assets) plus dividends declared divided by the prior period’s tangible book value.Taxable REIT Subsidiary (“TRS”)An entity that is owned directly or indirectly by a REIT and