False Knowledge Costly for Annaly Capital Holders

Last year the Fed announced QE programs that encompassed buying of mortgage backed securities (MBS) for the foreseeable future. Owners of mREITs like Annaly Capital (NLY) were sure they would be safe until at least the end of 2014.

That knowledge made them feel invulnerable to potentially higher interest rates. It allowed them to ignore high leverage factors employed by Annaly Capital Management and other mortgage REITs....387 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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