Dmitri

Annaly Capital To Take Fannie, Freddie's Place?

At the end of the day NLY is a leverred AAA/US Government guaranteed(whatever its worth these days) portfolio yielding 14% or so.
If I go long NLY vs short T-Bond is there any way i could lose money on this trade? Please advise - am i missing something here?

Annaly Capital Management: Epitome of Low Risk, High Reward

agree with jaz here - this is not about spreads meanreverting - you are buying govies with a spread to govies..as long as you believe US treasurieas are risk free this is a close to free arb as it gets..Risk trade - why dont you short some FNM stock as a hedge?