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Wells Fargo cuts Annaly Capital (NLY -0.8%) to Market Perform, citing the potential risks to the...

Wells Fargo cuts Annaly Capital (NLY -0.8%) to Market Perform, citing the potential risks to the company's longer duration portfolio from rising longer term rates. The firm also lowers its price target range to $16-$17 from $16-$18.
Comments (5)
  • Henry Lee
    , contributor
    Comments (220) | Send Message
     
    The problem with Wells Fargo downgrade is that they dont forecast long term interest rates well. It is almost a meaningless downgrade. The company discloses this in their 10-K that higher long term rates could hurt operating performance. (Yes, I have position.).
    6 Mar 2012, 11:07 AM Reply Like
  • gharrod
    , contributor
    Comments (54) | Send Message
     
    Dont we already know the rates will stay the same until around 2014?
    6 Mar 2012, 11:41 AM Reply Like
  • jblau
    , contributor
    Comments (34) | Send Message
     
    NLY is still the best of the real estate reits. Where else in this climate are you going to do better. With interest rates at the current level and with the FED saying they will remain at this level until 2014 or longer this is a good deal even if the price fluctuates a point or two.
    6 Mar 2012, 12:18 PM Reply Like
  • kingdad
    , contributor
    Comments (833) | Send Message
     
    I agree with all 3 of the above posters.
    Jblau I like ARR better than NLY esp. from a return pov. 18.51% as of post. vs NLY @ 13.73%. have held and respect NLY, current long ARR, CYS; sold AGNC x-div at a profit on Monday.
    6 Mar 2012, 12:53 PM Reply Like
  • bill d
    , contributor
    Comments (1879) | Send Message
     
    Glad that WF is not designing our rocket ship program.
    Dumbest announcement I have ever heard.
    I have WF Advantage fund - 9% return - hope the morons making these announcements are not involved.
    Don't want to sell it now but will get NLY soon as my new money gets here..
    7 Mar 2012, 03:32 PM Reply Like
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