Annaly Capital reports Q3 EAD 66c, consensus 72c

Reports economic return of (8.8%) for the third quarter. Book value per common share of $18.25. GAAP leverage of 7.1x, up from 6.1x in the prior quarter; economic leverage of 6.4x, up from 5.8x in the prior quarter. “The third quarter of 2023 marked a challenging period for fixed income markets driven by a rapid rise in global yields. Agency MBS spreads widened amidst ongoing supply, MBS runoff from Federal Reserve and bank portfolios as well as elevated volatility,” commented David Finkelstein, Annaly’s Chief Executive Officer and Chief Investment Officer. “Annaly entered the quarter with lower leverage and substantial liquidity, which, along with our dynamic hedging, enabled us to remain nimble. Despite our active portfolio management, higher rates and spreads weighed on our book value and economic return for the quarter.”