Annaly Capital Management
A publicly traded U.S. mortgage real estate investment trust that invests in mortgage-backed securities and other real-estate-related financial assets.
Last updated August 21, 2026
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Overview
Annaly Capital Management, Inc. is a U.S. mortgage real estate investment trust, or mREIT, established in 1997 and organized in Maryland with its principal office in New York City. Its shares trade on the New York Stock Exchange under the symbol NLY. Unlike an operating real estate company that develops, owns or leases physical properties, Annaly primarily allocates capital to mortgage-related financial assets and seeks to earn returns from the spread between income generated by those assets and the cost of financing them. The company's principal investment area has historically been agency mortgage-backed securities. These securities are issued or guaranteed by U.S. government agencies or government-sponsored enterprises, including Fannie Mae and Freddie Mac. According to the cited year-end 2023 description, mortgage-backed securities issued by Fannie Mae or Freddie Mac represented 88% of Annaly's assets. The portfolio has also included residential credit, commercial real estate finance and mortgage servicing rights, giving the company exposure to several parts of the U.S. housing and property-finance system. Annaly generally finances assets through short-term repurchase agreements and related capital-markets arrangements. Its business model depends substantially on the net interest spread: the difference between the yield earned on investments and the interest paid on borrowings. Leverage can increase the potential return on equity, but it also magnifies the effects of rising funding costs, changing asset values, market volatility and liquidity constraints. The company therefore manages exposure to interest-rate movements, yield-curve changes, prepayment behavior, credit conditions, collateral values and the availability of repo financing. The company has expanded and adjusted its platform through acquisitions and portfolio changes. Notable transactions include the 2004 acquisition of Fixed Income Discount Advisory, the 2013 acquisition of CreXus Investment, and the 2016 acquisition of Hatteras Financial. Annaly later sold its Pingora servicing subsidiary in 2017, illustrating a continuing effort to shape the portfolio around its preferred real-estate-finance businesses. Leadership also changed after co-founder and chief executive Michael A. J. Farrell became ill and died in 2012; Wellington Denahan subsequently served as chief executive, followed by Kevin Keyes and then David L. Finkelstein. Annaly's investment results are closely linked to U.S. monetary policy, mortgage-market structure and financial regulation. Short-term interest rates influence the cost of repo financing, while longer-term rates and mortgage spreads affect the market value and income potential of securities. Prepayments can change the expected life and yield of mortgage assets, and stress in funding markets can affect the company's ability to maintain leverage. As a real estate investment trust, Annaly is also associated with shareholder distributions and income-oriented investing, although distributions and results vary with market and operating conditions. Its brand is consequently positioned for institutional and public-market investors as a specialist mortgage and real-estate-finance platform rather than as a consumer-facing financial-services brand.
History
Annaly Capital Management was founded in 1997 by Michael A. J. Farrell and Wellington Denahan. Farrell had spent 26 years in investment banking, including positions associated with E. F. Hutton, Morgan Stanley and Merrill Lynch. The company was named after Annaly in Ireland, a place associated with the ancestry of its founder. From its formation, Annaly operated as a mortgage real estate investment trust rather than as a conventional property owner or developer. Its basic model was to borrow in capital markets and invest the proceeds in mortgage-related assets. Agency mortgage-backed securities became the central element of the platform. These securities are connected to residential mortgages and are issued or guaranteed by U.S. government agencies or government-sponsored enterprises. Annaly's earnings are shaped by the difference between investment income and the cost of short-term funding, especially repurchase agreements. Leverage is an important component of the model: it can enhance returns when asset yields exceed financing costs, but it also increases sensitivity to interest-rate changes, collateral valuations and liquidity conditions. The company broadened its activities through corporate transactions. In 2004, it purchased Fixed Income Discount Advisory, an investment adviser, in a stock transaction valued at approximately $40.5 million. In 2013, it acquired CreXus Investment for approximately $996 million, expanding its connection to commercial real estate finance. In 2016, Annaly acquired Hatteras Financial for approximately $1.5 billion in cash and stock. The company subsequently sold its Pingora servicing subsidiary in 2017, reducing that part of its operating platform. Leadership changed significantly during the 2010s. Farrell became ill with cancer in 2012, and Denahan assumed the chief executive role in October of that year. Farrell died later in October. Kevin Keyes was named chief executive effective September 30, 2015. In March 2020, David L. Finkelstein became chief executive officer and joined Annaly's board. By year-end 2023, the company was described as holding a portfolio in which 88% of assets consisted of mortgage-backed securities issued by Fannie Mae or Freddie Mac. Its repurchase agreements had a weighted average maturity of 44 days at that date. These figures illustrate the company's continuing concentration in agency mortgage finance and its reliance on short-term funding markets. The platform has also maintained exposure to residential credit, commercial real estate finance and mortgage servicing rights. Annaly's business environment is determined by U.S. interest rates, monetary policy, mortgage prepayment speeds, yield-curve movements, credit spreads, housing conditions and regulation of financial institutions and real estate investment trusts. Its financial structure requires continuing management of asset-liability duration, leverage, liquidity and hedging. The company remains a publicly traded specialist investment platform whose principal audience is institutional and individual investors seeking exposure to mortgage and real-estate-related finance.
- 2023
Agency mortgage-backed securities remained the dominant asset category
[1]At year-end, mortgage-backed securities issued by Fannie Mae or Freddie Mac represented 88% of the company's assets, according to the cited company description.
- 2020
David L. Finkelstein became chief executive
[1]David L. Finkelstein became chief executive officer and joined the board in March 2020.
- 2017
Sale of Pingora servicing subsidiary
[1]Annaly sold its Pingora mortgage-servicing subsidiary.
- 2016
Acquisition of Hatteras Financial
[1]Annaly acquired Hatteras Financial in a cash-and-stock transaction reported at approximately $1.5 billion.
- 2015
Kevin Keyes appointed chief executive
[1]Kevin Keyes became chief executive effective September 30, 2015.
- 2013
Acquisition of CreXus Investment
[1]Annaly acquired CreXus Investment in a transaction reported at approximately $996 million.
- 2012
Denahan became chief executive
[1]Wellington Denahan became chief executive in October after co-founder Michael Farrell was diagnosed with cancer; Farrell died later that month.
- 2004
Acquisition of Fixed Income Discount Advisory
[1]Annaly acquired the investment adviser Fixed Income Discount Advisory in a stock transaction reported at approximately $40.5 million.
- 1997
Company founded
[1]Michael A. J. Farrell and Wellington Denahan founded Annaly Capital Management as a mortgage-focused real estate investment trust.
Products and positioning
A specialist mortgage real estate investment trust focused on financing and managing mortgage-backed securities and related real-estate-credit assets for capital-markets investors.
Mortgage finance investments
Agency mortgage-backed securities
Mortgage-backed securities issued or guaranteed by U.S. government agencies or government-sponsored enterprises form Annaly's core investment category. The portfolio has included securities associated with Fannie Mae and Freddie Mac. Annaly finances and manages these instruments to generate interest income and investment returns. Performance depends on mortgage rates, prepayment speeds, asset spreads, market values, hedging and the cost and availability of short-term funding.
Residential real estate finance
Residential credit
Residential credit investments provide exposure to mortgage loans and other assets connected with the U.S. housing-credit market beyond the agency securities portfolio. Returns and risk are influenced by borrower credit quality, delinquencies, defaults, housing prices, loan structure and credit spreads. This area complements Annaly's agency strategy while introducing greater exposure to borrower and collateral performance.
Commercial real estate finance
Commercial real estate finance
Commercial real estate finance investments may include loans, securities and other instruments linked to income-producing property and commercial property credit. The business gives Annaly exposure to property valuations, rental income, occupancy, refinancing conditions and commercial real estate capital markets. The company expanded its connection to this area through the acquisition of CreXus Investment.
Mortgage servicing assets
Mortgage servicing rights
Mortgage servicing rights represent economic interests connected with servicing mortgage loans. Their value can be affected by interest rates, loan prepayments, servicing expenses, borrower behavior and the scale and quality of the underlying servicing portfolio. Annaly had exposure to this area through its Pingora servicing subsidiary before selling that subsidiary in 2017.
Brand decisions
2017
Sell Pingora servicing subsidiaryStrategyBackground
Annaly reviewed the composition of its mortgage-servicing and real-estate-finance platform.
Action taken
The company sold its Pingora servicing subsidiary.
Aftermath
The sale reduced Annaly's direct servicing operations and left the company more focused on its investment-oriented mortgage and real-estate-finance activities.
2016
Acquire Hatteras FinancialM&ABackground
Annaly continued consolidating mortgage real estate investment businesses and mortgage-related investment capabilities.
Action taken
Annaly acquired Hatteras Financial in a combination of cash and stock reported at approximately $1.5 billion.
Aftermath
The transaction expanded Annaly's mortgage investment platform; the cited material does not specify subsequent financial results.
Transaction value. Approximately $1.5 billion (2016)
2013
Acquire CreXus InvestmentM&ABackground
Annaly pursued additional exposure to commercial real estate finance.
Action taken
The company acquired CreXus Investment in a transaction reported at approximately $996 million.
Aftermath
The acquisition broadened Annaly's real-estate-credit platform beyond its traditional agency mortgage-backed securities focus.
Transaction value. Approximately $996 million (2013)
2004
Acquire Fixed Income Discount AdvisoryM&ABackground
Annaly sought to expand its investment-advisory capabilities within mortgage and fixed-income markets.
Action taken
The company acquired Fixed Income Discount Advisory in a stock transaction reported at approximately $40.5 million.
Aftermath
The acquisition strengthened Annaly's internal investment-management platform, although the cited material does not provide further operating detail.
Transaction value. Approximately $40.5 million (2004)
Recent events
- 2020
David L. Finkelstein became chief executive[1]
Leadership change
David L. Finkelstein was appointed chief executive officer and joined the board in March 2020.
- 2017
Annaly sold Pingora servicing subsidiary[1]
M&A
The company sold its Pingora mortgage-servicing subsidiary as part of its portfolio and platform management.
- 2016
Annaly acquired Hatteras Financial[1]
M&A
Annaly acquired Hatteras Financial in a cash-and-stock transaction reported at approximately $1.5 billion.
- 2015
Kevin Keyes appointed chief executive[1]
Leadership change
Kevin Keyes became chief executive effective September 30, 2015.
- 2013
Annaly acquired CreXus Investment[1]
M&A
Annaly completed the acquisition of CreXus Investment in a transaction reported at approximately $996 million.
- 2012
Wellington Denahan became chief executive after Michael Farrell's illness[1]
Leadership change
Co-founder Wellington Denahan assumed the chief executive role in October 2012 after Farrell was diagnosed with cancer. Farrell died later that month.
- 2004
Annaly acquired Fixed Income Discount Advisory[1]
M&A
The company acquired the investment adviser Fixed Income Discount Advisory in a stock transaction valued at approximately $40.5 million at the time.
- 1997
Annaly founded as a mortgage real estate investment trust[1]
Other
Michael A. J. Farrell and Wellington Denahan established Annaly with a focus on mortgage and real-estate finance.
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