Annaly Capital Management, Inc. Publishes White Paper on Credit Risk Transfer
March 06 2018 - 4:15PM
Business Wire
Annaly Capital Management, Inc. (NYSE:NLY) (the “Company” or
“Annaly”) is pleased to announce the publication of a new research
report titled “Credit Risk Transfer and De Facto GSE Reform.” The
report, which summarizes and evaluates Fannie Mae and Freddie Mac’s
Credit Risk Transfer (“CRT”) initiative, is co-authored by David
Finkelstein, Chief Investment Officer of Annaly, Andreas Strzodka,
Director of Macro Strategy of Annaly, and James Vickery, Assistant
Vice President in the Research and Statistics Group of the Federal
Reserve Bank of New York.
In the report, the authors assess the impact of the CRT programs
and argue that the systems have successfully reduced the exposure
of the federal government to mortgage credit risk while enhancing
the liquidity and stability of mortgage secondary markets. The
report states that “the CRT initiative has improved the stability
of the housing finance system and advanced a number of important
objectives of GSE reform,” and that “in the process, the programs
have created a new financial market for pricing and trading
mortgage credit risk, which has grown in size and liquidity over
time.”
“We are honored to have the responsibility of analyzing and
discussing the value of the GSE’s CRT systems in writing this
report. The liquidity and stability of the credit risk transfer
programs efficiently contribute to the continued evolution and
sustainability of the US housing finance market,” said Kevin Keyes,
Annaly’s Chairman, Chief Executive Officer and President. “Our
efforts and partnership in writing this paper is another
illustration of Annaly’s market leadership and the unique depth and
broad expertise of our management team.”
“We appreciate the opportunity to co-author this piece and
highlight the success of these CRT programs,” said David
Finkelstein, Chief Investment Officer. “We believe the attention on
this topic is valuable and informative as focus on CRT efforts
continue to grow and evolve.”
An electronic version of the paper may be viewed at either of
the following links:
New York Federal Reserve Website:
https://www.newyorkfed.org/research/staff_reports/sr838.html
Annaly Website:
http://www.annaly.com/investors/news/thought-leadership
The research paper was issued as a Federal Reserve Bank of New
York Staff Report earlier this year, and is expected to be
published more formally in the New York Federal Reserve Bank’s
Economic Policy Review in the coming months. The views in the paper
represent those of the authors and are not the official positions
of Annaly, the Federal Reserve Bank of New York or the Federal
Reserve System.
About Annaly
Annaly is a leading diversified capital manager that invests in
and finances residential and commercial assets. Annaly’s principal
business objective is to generate net income for distribution to
its stockholders and to preserve capital through prudent selection
of investments and continuous management of its portfolio. Annaly
has elected to be taxed as a real estate investment trust, or REIT,
for federal income tax purposes. Annaly is externally managed by
Annaly Management Company LLC. Additional information on the
company can be found at www.annaly.com.
Forward-Looking Statements
This news release and our public documents to which we refer
contain or incorporate by reference certain forward-looking
statements which are based on various assumptions (some of which
are beyond our control) and 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 and other
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; our ability to grow our commercial real estate business;
our ability to grow our residential mortgage credit business; our
ability to grow our middle market lending business; credit risks
related to our investments in credit risk transfer securities,
residential mortgage-backed securities and related residential
mortgage credit assets, commercial real estate assets and corporate
debt; risks related to investments in mortgage servicing rights;
our ability to consummate any contemplated investment
opportunities; changes in government regulations and policy
affecting our business; our ability to maintain our qualification
as a REIT for U.S. federal income tax purposes; and our ability to
maintain our exemption from registration under the Investment
Company Act of 1940, as amended. 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, except as required by law.
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