Company: NLY-PF
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001043219-25-000012
Chunk: 78

Company: ANNALY CAPITAL MANAGEMENT INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 78
---
 non-recourse to us and are excluded from this measure.Reinvestment RiskThe risk that interest income or principal repayments will have to be reinvested at lower rates in a declining rate environment.Re-Performing Loan (“RPL”)A type of loan in which payments were previously delinquent by at least 90 days but have resumed.Repurchase AgreementThe sale of securities to investors with the agreement to buy them back at a higher price after a specified time period; a form of short-term borrowing. For the party on the other end of the  transaction (buying the security and agreeing to sell in the future) it is a reverse repurchase agreement.Residential Credit SecuritiesRefers to CRT securities and non-Agency mortgage-backed securities.Residential SecuritiesRefers to Agency mortgage-backed securities, 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.

80

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

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.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