The company borrows money, primarily via short term repurchase agreements, and reinvests the proceeds in asset-backed securities. As of December 31, 2023, 88% of the company's assets were mortgage-backed securities issued by either Fannie Mae or Freddie Mac. The company generates profits from the net interest spread 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 leverage ratio of 6.8:1.[1]
As of December 31, 2023, the weighted average days to maturity of its repurchase agreements was 44 days.[1]
The company is named after Annaly, Ireland, which was ruled by the ancestors of the company's founder.[3]
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, and Merrill Lynch.[4][5]
In 2004, the company acquired Fixed Income Discount Advisory, an investment adviser, for $40.5 million in stock.[6]
In October 2012, co-founder Wellington Denahan became CEO after Michael Farrell was diagnosed with cancer; Farrell died that month.[4][7][8]
In 2013, the company acquired CreXus Investment for $996 million.[9][10]
Effective September 30, 2015, Kevin Keyes was named CEO of the company.[11][12]
In 2016, the company acquired Hatteras Financial for $1.5 billion in cash and stock.[13][14]
In 2017, the company sold its Pingora servicing subsidiary.[15]
In March 2020, David L. Finkelstein was named Chief Executive Officer and a member of the Board.[16]
