Annaly (NLY -2.7%) is downgraded to Equal Weight at Barclays, the analysts saying net interest...

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

Annaly (NLY -2.7%) is downgraded to Equal Weight at Barclays, the analysts saying net interest margin of 124 bps translates into a ROE of 8.5% going forward - not enough to cover the estimated cost of equity (10%). The frightening thing is spreads could compress further (double digits?), making even stock buybacks ineffectual at propping the share price.