Q1 2026 Annaly Capital Management Inc Earnings Call Transcript
Key Points
- Annaly Capital Management Inc (NLY) delivered an economic return of 1.5% in the first quarter, showcasing the strength of its diversified housing finance platform.
- The company raised approximately $510 million of common equity through its ATM program, which was primarily deployed in residential credit and mortgage servicing rights (MSR) strategies.
- Annaly Capital Management Inc (NLY) maintained a conservative leverage ratio of 5.7 times, reflecting disciplined risk management.
- The Residential Credit business achieved a record quarter with $4.7 billion in securitizations, surpassing $50 billion in total issuance since inception.
- The MSR portfolio increased to 21% of the firm's capital, with Annaly Capital Management Inc (NLY) being the second-largest buyer of conventional MSR in the first quarter.
- The book value per share decreased by 1.9% from the prior quarter to $19.82, indicating some pressure on asset valuations.
- The geopolitical conflict in the Middle East introduced an energy price shock, potentially challenging the performance of the US economy.
- Higher commodity prices, particularly oil and food, risk further squeezing consumers already facing slowing income growth and affordability constraints.
- The bond market reacted sharply to geopolitical tensions, with treasury yields selling off significantly in March.
- Despite a strong start to the year, credit spreads widened in late February and March, impacting the performance of certain investment strategies.
Good day, and welcome to the first quarter 2026 Annaly Capital Management earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Sean Kensil, Director Investor Relations. Please go ahead.
Good morning, and welcome to the first quarter 2026 earnings call for Annaly Capital Management. Any forward-looking statements made during today's call are subject to certain risks and uncertainties, which are outlined in the Risk Factors section and our most recent annual and quarterly SEC filings.
Actual events and results may differ materially from these forward-looking statements. We encourage you to read the disclaimer in our earnings release in addition to our quarterly and annual filings. Additionally, the content of this conference call may contain time-sensitive information that is accurate only as of the date hereof. We do not undertake and specifically disclaim any obligation to update or revise
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