Annaly Reports Big Increase in Book Value Per Share

The COVID-19 crisis has been the toughest test the mortgage real estate investment trust (REIT) sector has faced since the 2008–09 Great Recession. Liquidity in the mortgage-backed securities markets dried up virtually overnight, triggering margin calls and forced liquidation of assets. Every mortgage REIT reported big drops in book values and cut their dividends.

One mortgage REIT, Annaly Capital Management (NYSE: NLY), recently reported second-quarter earnings. What the company reported provides a snapshot of how things currently stand in the mortgage REIT market.

Annaly Capital management said in their report that the worst is over as far as the financial fallout from COVID-19. While this ultimately depends on how the coronavirus pandemic progresses from here, management said the initial crisis is over and we are now in the recovery period, where asset values are returning to normal. On the earnings conference call, CEO David Finkelstein had this to say:

Continue reading

Source Fool.com