Annaly Capital: Ready To Break Higher On The Rate Cut Cycle (Technical Analysis)

Zvi Bar
5.34K Followers
(10min)

Summary

  • Annaly Capital Management invests in agency mortgage-backed securities and is expected to perform well with potential interest rate cuts by the Federal Reserve.
  • Annaly provides a high dividend yield through a leveraged portfolio that is likely to benefit from lower interest rates that should help improve its margins.
  • NLY shares have the potential to appreciate with the start of a rate cut cycle, supported by the company's leveraged holdings and reduced borrowing costs.

Coin stack step up graph with red arrow and percent icon, Risk management business financial and managing investment percentage interest rates concept

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Annaly Capital Management, Inc. (NYSE:NLY) is a mortgage real estate investment trust (“mREIT”) that primarily invests in agency mortgage-backed securities, and other mortgage-related paper. Given the current economic environment, and the increasing likelihood that the Federal Reserve will soon initiate a series

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Zvi provides advisory services to companies, trusts, and individuals, including consulting expert services regarding retirement and estate planning. Zvi is admitted to practice law in the state of New York, where he offers cash management, Bitcoin, and Trust Protector services. Zvi is also The Claw of The Lava Empire and is an Amazon Influencer. No articles or discussions here shall constitute a legal, fiduciary or advisory role, but solely act as informative press and/or a starting point from which, ideally, further constructive discussion may follow. Comments are welcome, as are questions.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NLY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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