Standard & Poor's has selected mortgage investment company Annaly Capital Management (NYSE: NLY) to join its MidCap 400 index. The news is drawing new interest to Annaly stock, sending the shares up as much as 6% on Tuesday morning.

Annaly is a mortgage real estate investment trust (REIT), a company that invests in mortgage-backed securities. The company makes its money via principal and interest repayments as servicing rights, another name for the administrative task of collecting payments and managing the loans.

A decade of low rates has made for a difficult environment for Annaly, and the shares are down more than 60% over the past 10 years. But with the Federal Reserve indicating that it is winding up its long-running rate-tightening cycle, investors have taken a fresh interest in Annaly as a way to benefit from higher rates in the future.

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Source Fool.com