NEW YORK--(BUSINESS WIRE)--Annaly Capital Management, Inc. (NYSE:NLY) (the “Company” or “Annaly”) is pleased to announce the publication of a new research report titled “Credit Risk Transfer and De Facto GSE Reform.” The report, which summarizes and evaluates Fannie Mae and Freddie Mac’s Credit Risk Transfer (“CRT”) initiative, is co-authored by David Finkelstein, Chief Investment Officer of Annaly, Andreas Strzodka, Director of Macro Strategy of Annaly, and James Vickery, Assistant Vice President in the Research and Statistics Group of the Federal Reserve Bank of New York.
In the report, the authors assess the impact of the CRT programs and argue that the systems have successfully reduced the exposure of the federal government to mortgage credit risk while enhancing the liquidity and stability of mortgage secondary markets. The report states that “the CRT initiative has improved the stability of the housing finance system and advanced a number of important objectives of GSE reform,” and that “in the process, the programs have created a new financial market for pricing and trading mortgage credit risk, which has grown in size and liquidity over time.”
“We are honored to have the responsibility of analyzing and discussing the value of the GSE’s CRT systems in writing this report. The liquidity and stability of the credit risk transfer programs efficiently contribute to the continued evolution and sustainability of the US housing finance market,” said Kevin Keyes, Annaly’s Chairman, Chief Executive Officer and President. “Our efforts and partnership in writing this paper is another illustration of Annaly’s market leadership and the unique depth and broad expertise of our management team.”
“We appreciate the opportunity to co-author this piece and highlight the success of these CRT programs,” said David Finkelstein, Chief Investment Officer. “We believe the attention on this topic is valuable and informative as focus on CRT efforts continue to grow and evolve.”
An electronic version of the paper may be viewed at either of the following links:
|New York Federal Reserve Website:|
The research paper was issued as a Federal Reserve Bank of New York Staff Report earlier this year, and is expected to be published more formally in the New York Federal Reserve Bank’s Economic Policy Review in the coming months. The views in the paper represent those of the authors and are not the official positions of Annaly, the Federal Reserve Bank of New York or the Federal Reserve System.
Annaly is a leading diversified capital manager that invests in and finances residential and commercial assets. Annaly’s principal business objective is to generate net income for distribution to its stockholders and to preserve capital through prudent selection of investments and continuous management of its portfolio. Annaly has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Annaly is externally managed by Annaly Management Company LLC. Additional information on the company can be found at www.annaly.com.
This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements which are based on various assumptions (some of which are beyond our control) and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “anticipate,” “continue,” or similar terms or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward looking statements due to a variety of factors, including, but not limited to, changes in interest rates; changes in the yield curve; changes in prepayment rates; the availability of mortgage-backed securities and other securities for purchase; the availability of financing and, if available, the terms of any financing; changes in the market value of our assets; changes in business conditions and the general economy; our ability to grow our commercial real estate business; our ability to grow our residential mortgage credit business; our ability to grow our middle market lending business; credit risks related to our investments in credit risk transfer securities, residential mortgage-backed securities and related residential mortgage credit assets, commercial real estate assets and corporate debt; risks related to investments in mortgage servicing rights; our ability to consummate any contemplated investment opportunities; changes in government regulations and policy affecting our business; our ability to maintain our qualification as a REIT for U.S. federal income tax purposes; and our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. We do not undertake, and specifically disclaim any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law.