William Armstrong

Annaly Capital Management: Is Excellent Performance a Thing of the Past?

I did not make any projections for libor. I simply noted that the spread between the rate at which NLY borrows and the rate they earn on their assets had narrowed sharply during the last quarter of 2008. The spread was 1.61% at the beginning of the quarter and only 0.95% at the end. That means that NLY began Q1 09 earning a spread 40% LESS than the spread that they started the previous quarter at. That does not bode well for earnings this quarter.