Agency

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Utilizing the power of Annaly’s capital to generate attractive returns and support the American homeowner.

The Annaly Agency Group provides investors with access to the highly-liquid Agency Mortgage-Backed Securities (“MBS”) market. Annaly invests in Agency MBS and Agency CMBS collateralized by residential or commercial mortgages, guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.

Representing a significant portion of the Firm’s dedicated equity, the Annaly Agency Group generates attractive returns without credit risk. Our seasoned team manages interest rate exposure inherent in Agency MBS through disciplined asset selection and an array of hedging products. Our portfolio is funded through diverse and attractive financing markets available to MBS given the depth of the asset class and its government sponsorship.

Annaly Agency Group

Assets

$66.0bn⁽¹⁾

Capital

$6.5bn

Strategy

Countercyclical / Defensive

Spec Pools

Backed by 15 year and 30 year fixed rate mortgages
Target MBS with unique characteristics that provide either call or extension protection depending on the investing environment
Creates relatively durable and stable cash flows

TBA Securities

Most liquid sector in Agency market
Depth of market enables strategic trading
At times, implied financing rates in the TBA market provides cheaper alternative to Agency repurchase agreements (“repo”)

IOs

Negative duration assets that provide interest payments to the bond holder
Provide an efficient portfolio hedge for rising rates while simultaneously producing coupon income

Portfolio Summary

Assets⁽²⁾

Hedges⁽³⁾

Funding⁽⁴⁾

Analytics, Innovation and Technology

Our significant technology investments have led to the development of proprietary portfolio analytics, financial and capital allocation modeling, and other risk and reporting tools, which, coupled with cutting-edge digital transformation applications, support the operating efficiency of our business. These in-house proprietary analytics support our portfolio through the identification of emerging prepayment trends and aid in accurately estimating cash flows.

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