NEW YORK--(BUSINESS WIRE)--
Annaly Capital Management, Inc. (NYSE: NLY) announced that its Chairman,
Chief Executive Officer and President, Michael A.J. Farrell, will appear
as a witness tomorrow before the International Monetary Policy and Trade
Subcommittee of the House Committee on Financial Services, at a hearing
entitled “The U.S. Housing Finance System in the Global Context:
Structure, Capital Sources, and Housing Dynamics.”
Mr. Farrell focuses on the sources of capital formation in the American
housing market, and the uniqueness of the US mortgage market. He puts
the American housing finance system in global context and discusses why
the systems of other countries are not appropriate models for the
American system. For example, he points out that two-thirds of the
approximately $10.5 trillion American mortgages are funded by
securitization, while in Europe about two-thirds of mortgages are funded
by bank deposits. The American mortgage finance system, Mr. Farrell
says, “needs to have effective long-term holders of mortgage credit
outside the banking system.”
In his remarks, Mr. Farrell points out that a large percentage of global
investors in American residential mortgages are drawn to the size, scale
and flexibility of the Agency MBS market. “Many, if not most, investors
in Agency MBS won’t invest in private label MBS at any price or only in
reduced amounts because of their need for liquidity or the restrictions
of their investment guidelines. Some of these so-called ‘rates
investors’ could cross over, and investors in other asset classes might
be attracted to a deeper private label MBS market, but we can’t say for
sure how many or at what price or in what time frame….I believe that a
housing finance system that does not include the homogeneity and
liquidity made possible by government involvement will be smaller and
more expensive, with potentially negative consequences for home prices
and homeowner flexibility.”
Mr. Farrell’s remarks are available on Annaly’s website at http://www.annaly.com/Admin/AttachmentFiles/Testimony_of_Annalys_Farrell_before_HFS_Miller_subcommittee_10.13.11.pdf.
Annaly manages assets on behalf of institutional and individual
investors worldwide. The Company’s principal business objective is to
generate net income for distribution to investors from its Investment
Securities and from dividends it receives from its subsidiaries.
This news release and our public documents to which we refer contain or
incorporate by reference certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements which are based on various assumptions (some
of which are beyond our control) may be identified by reference to a
future period or periods or by the use of forward-looking terminology,
such as “may,” “will,” “believe,” “expect,” “anticipate,” “continue,” or
similar terms or variations on those terms or the negative of those
terms. Actual results could differ materially from those set forth in
forward-looking statements due to a variety of factors, including, but
not limited to, changes in interest rates, changes in the yield curve,
changes in prepayment rates, the availability of mortgage-backed
securities for purchase, the availability of financing and, if
available, the terms of any financing, changes in the market value of
our assets, changes in business conditions and the general economy,
changes in government regulations affecting our business, our ability to
maintain our qualification as a REIT for federal income tax purposes,
our ability to maintain an exemption from registration under the
Investment Company Act of 1940, risks associated with the broker-dealer
business of our subsidiary, and risks associated with the investment
advisory business of our subsidiaries, including the removal by clients
of assets they manage, their regulatory requirements and competition in
the investment advisory business. For a discussion of the risks and
uncertainties which could cause actual results to differ from those
contained in the forward-looking statements, see “Risk Factors” in our
most recent Annual Report on Form 10-K and any subsequent Quarterly
Reports on Form 10-Q. We do not undertake, and specifically disclaim any
obligation, to publicly release the result of any revisions which may be
made to any forward-looking statements to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date of
such statements.
Annaly Capital Management, Inc.
Investor Relations
1-888-8Annaly
www.annaly.com
Source: Annaly Capital Management, Inc.