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Opinion on NLY?
Old 05-11-2010, 02:23 PM   #1
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Opinion on NLY?

Owners of NLY? I bot this @ 17.50. It has started sliding down. Even though it pays good dividend, is it worth keeping for long term or should I take $500 loss & get out of it? Your opinion will be appreciated.
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Old 05-11-2010, 03:05 PM   #2
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Sell after the next dividend if you think the price will hold until then. I have some NLY but haven't paid much attention to it lately.

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Old 05-14-2010, 04:13 PM   #3
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Owners of NLY? I bot this @ 17.50. It has started sliding down. Even though it pays good dividend, is it worth keeping for long term or should I take $500 loss & get out of it? Your opinion will be appreciated.

I own 225 shares at 17.90. I plan on keeping it and reinvesting the dividends as long as I can.
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Old 05-16-2010, 03:11 PM   #4
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i wouldnt touch it with a ten foot pole. looks like a HIGH risk venture.

"The company invests primarily in mortgage pass-through certificates, collateralized mortgage obligations, agency callable debentures, and other mortgage-backed securities representing interests in or obligations backed by pools of mortgage loans."

have you done any dd on their portfolio?

but who really knows, when they suspended mark to market....all transparency disappeared.
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Old 05-16-2010, 03:53 PM   #5
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i wouldnt touch it with a ten foot pole. looks like a HIGH risk venture.

"The company invests primarily in mortgage pass-through certificates, collateralized mortgage obligations, agency callable debentures, and other mortgage-backed securities representing interests in or obligations backed by pools of mortgage loans."

have you done any dd on their portfolio?

but who really knows, when they suspended mark to market....all transparency disappeared.

NLY's portfolio is entirely agency MBS, very plain vanilla stuff backed by the feddle gummint. It is quite liquid and marked to market at least daily. The real risk with NLY and its brethren (AGNC, CMO, ANH, MFA, etc.) is that they are levered and have interest rate bets on. Credit risk is negligible.
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Old 05-16-2010, 05:47 PM   #6
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NLY's portfolio is entirely agency MBS, very plain vanilla stuff backed by the feddle gummint. It is quite liquid and marked to market at least daily. The real risk with NLY and its brethren (AGNC, CMO, ANH, MFA, etc.) is that they are levered and have interest rate bets on. Credit risk is negligible.
well dc/nyc has shown no limit on bailing out fannie/freddie -- so good to go on that.

i noticed the leverage. wonder if their borrowings are floating rate? could be a good short when the fed is finally forced to raise rates.
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Old 05-16-2010, 05:58 PM   #7
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well dc/nyc has shown no limit on bailing out fannie/freddie -- so good to go on that.

i noticed the leverage. wonder if their borrowings are floating rate? could be a good short when the fed is finally forced to raise rates.
Most of the MREITs use 30 to 90 day repos to finance their MBS, but most/all hedge to some degree with interest rate swaps. I do not follow NLY that closely, but ANH (which I have an interest in) has about half of its borrowings swapped out to match assets, with the rest being floating rate.
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Old 05-28-2010, 10:48 AM   #8
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Put the MReits in an IRA and just let the compounding magic work. Check the last call to see their swap book & spreads and go from there. I personally dont see rates moving materially for another year+ for whatever thats worth.
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