NLY Annaly Capital Management. Inc. : Bullish and Bearish Analyst Opinions

Focus on income assets like mortgage REITs.

"Annaly's dividends almost 13% on the common. The reason a bare steepener doesn't worry me with an agency read like Annalie is that steep is good... It has more spread between short-term and long-term." Agency REITs fund themselves in short-term repo markets and purchase long-term mortgage-backed securities. A steepening yield curve directly expands their net interest margin, securing their high dividend yield and providing robust fiat income to balance a portfolio holding non-yielding assets like gold. LONG. It is an ideal income-generating vehicle (surrogate for T-bills but with 3x-4x the yield) that actively benefits from the current macroeconomic interest rate environment. A flattening or inverted yield curve, or sudden liquidity spikes in short-term repo rates, could squeeze their net interest margins and force dividend cuts.

"I bought some more income the other day. You know, I I've been growing my position in Annaly... things like that that throw off cash flow and don't have very high betas." In a volatile, "risk-off" environment, investors should seek low-beta assets that generate high current income. Mortgage REITs (mREITs) like Annaly provide cash flow while the investor waits for the broader market correction to settle. Long for income and defensive positioning. Interest rate volatility or a spike in mortgage spreads could negatively impact book value.

Whalen highlights that Rocket Companies (RKT) had "really good, great volumes" and a very good earnings report. He also mentions Annaly (NLY) as a "favorite portfolio holding" that has done very well. Despite high rates, these companies are managing to maintain volumes or leverage their servicing assets effectively. Lenders are getting aggressive to keep servicing assets, which supports the business models of market leaders like Rocket and Annaly. LONG based on strong earnings execution in a difficult environment. If the 10-year Treasury yield spikes back above 4.1%, mortgage activity could freeze entirely, hurting volumes.

"It's not a stock I own for capital appreciation. It's a stock I own for income... That stock's doing very well." In a market rotating toward safety and income, Annaly (investing in government-guaranteed MBS) offers high yield (low-to-mid teens) with lower credit risk than private credit. It acts as a bond-proxy defensive hold. Pure income/safety play. Interest rate volatility; spread widening between Treasuries and MBS.

Whalen states the market is moving from "speculation" to "preservation" and "cash flow." He explicitly names Annaly (NLY) as a holding for income and praises Walmart (WMT) for its defensive stability. As high-beta tech and crypto trades unwind ("run out of runway"), capital will rotate into defensive sectors (Consumer Staples) and high-yield instruments (Mortgage REITs) that provide security and income. LONG (Defensive Rotation). Rising long-term interest rates could hurt NLY's book value; consumer spending slowdown could impact WMT.