Annaly Capital Increases Exposure to Credit Risk as Agency Spreads Widen
As the economy recovers from COVID-19-related disruptions, investors are beginning to pay a lot more attention to the Federal Reserve and how its actions will affect their portfolios. Nowhere is this more of a concern than in the mortgage real estate investment trust (REIT) space, where companies like Annaly Capital (NYSE: NLY) are positioning themselves for when the Fed starts to reduce its purchases of mortgage-backed securities. Annaly recently reported second-quarter earnings and gave an update on how it is preparing for the end of Fed asset purchases.
