More on the Annaly (NLY) downgrade: The company is "in a pickle," says FBR, far more exposed to...

|About: Annaly Capital Managemen... (NLY)|By:, SA News Editor

More on the Annaly (NLYdowngrade: The company is "in a pickle," says FBR, far more exposed to prepayments than its mREIT brethren. A continuation of the constant prepayment rate near 20% will cause more rate spread contraction, book value erosion, and a H2 dividend cut. Just to maintain earnings (and the divvie) this Q, Annaly was forced to sell and book gains from its MBS portfolio. Shares -2.6% today.