Annaly Capital Management, Inc. is one of the largest

mortgage A mortgage loan or simply mortgage (), in civil law (legal system), civil law jurisdictions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners t ...

real estate investment trust A real estate investment trust (REIT, pronounced "reet") is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of real estate, including office and apartment buildings, studios, warehouses, hos ...

s. It is organized in

Maryland Maryland ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic region of the United States. It borders the states of Virginia to its south, West Virginia to its west, Pennsylvania to its north, and Delaware to its east ...

with its principal office in

New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...

. The company borrows money, primarily via short term

repurchase agreement A repurchase agreement, also known as a repo, RP, or sale and repurchase agreement, is a form of secured short-term borrowing, usually, though not always using government securities as collateral. A contracting party sells a security to a lend ...

s, and reinvests the proceeds in asset-backed securities. As of December 31, 2023, 88% of the company's assets were

mortgage-backed securities A mortgage-backed security (MBS) is a type of asset-backed security (an "Financial instrument, instrument") which is secured by a mortgage loan, mortgage or collection of mortgages. The mortgages are aggregated and sold to a group of individuals ( ...

issued by either

Fannie Mae The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the New ...

Freddie Mac The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is an American publicly traded, government-sponsored enterprise (GSE), headquartered in Tysons, Virginia.net interest spread Net interest spread refers to the difference in borrowing and lending rates of financial institutions (such as banks) in nominal terms. It is considered analogous to the gross margin of non-financial companies. Net interest spread is expressed as i ...

between the interest earned from its assets and its borrowing costs, which is amplified from the use of leverage. As of December 31, 2019, the company had a

GAAP Gaap (also Tap, Coap, Taob or Goap) is a demon that is described in demonological grimoires such as ''the Lesser Key of Solomon'', Johann Weyer's ''Pseudomonarchia Daemonum'', and the Munich Manual of Demonic Magic, as well as Jacques Collin d ...

leverage ratio of 6.8:1. As of December 31, 2023, the weighted average days to maturity of its repurchase agreements was 44 days. The company is ranked 857th on the ''Fortune'' 1000. The company is named after

Annaly Annaly is an Irish lordship and former principality, named for its conqueror Angaile, ancestor of the Ó Fearghail. The territory of Annaly coincides with modern County Longford and was conquered in the 10th century by Angaile, a King of For ...

Ireland Ireland (, ; ; Ulster Scots dialect, Ulster-Scots: ) is an island in the North Atlantic Ocean, in Northwestern Europe. Geopolitically, the island is divided between the Republic of Ireland (officially Names of the Irish state, named Irelan ...

, which was ruled by the ancestors of the company's founder.

History

Annaly Capital Management was founded in 1997 by Michael A.J. Farrell (1951-2012) and Wellington Denahan. Mike Farrell spent 26 years working for investment banks including E.F. Hutton & Co.,

Morgan Stanley Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in 42 countries and more than 80,000 employees, the firm's clients in ...

, and

Merrill Lynch Merrill Lynch, Pierce, Fenner & Smith Incorporated, doing business as Merrill, and previously branded Merrill Lynch, is an American investment management and wealth management division of Bank of America. Along with BofA Securities, the investm ...

. In 2004, the company acquired Fixed Income Discount Advisory, an investment adviser, for $40.5 million in stock. In October 2012, co-founder Wellington Denahan became CEO after Michael Farrell was diagnosed with cancer; Farrell died that month. In 2013, the company acquired CreXus Investment for $996 million. Effective September 30, 2015, Kevin Keyes was named CEO of the company. In 2016, the company acquired Hatteras Financial for $1.5 billion in cash and stock. In 2017, the company sold its Pingora servicing subsidiary. In March 2020, David L. Finkelstein was named Chief Executive Officer and a member of the Board.

References

External links

* {{Authority control 1997 establishments in Maryland 1997 initial public offerings Companies in the S&P 400 Companies listed on the New York Stock Exchange Financial services companies established in 1997 Publicly traded companies based in New York City Real estate companies established in 1997 Real estate investment trusts of the United States