2 Reasons Annaly Capital Management, Inc. (NLY) Could Lead a Mortgage REIT Rebound This Year

Looks like Annaly is on the right track
I’m quite sure that Annaly has been tracking the CMBS market for the past year or more, and that is exactly why it made a bid to buy up the remaining shares of CreXus. Certainly, Annaly also noticed that agency paper was settling down, despite the Fed’s interference. After all, this company has been around a while, and has seen a thing or two.

For Annaly and other pure-agency players, the jobs market recently added a smidge of good news to the mix. Despite the high-ish unemployment rate of 7.9%, people are coming back into the job market, signaling a sea change in the employment picture. While this may keep the unemployment rate high for the near term as the job pool swells, analysts see the Fed beginning to wind down QE3 as early as next year if the trend continues. And that’s extra-good news for mREITs with pots of agency-backed MBSes in the vault — like Annaly.

The article 2 Reasons Annaly Could Lead a Mortgage REIT Rebound This Year originally appeared on Fool.com and is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool owns shares of Annaly Capital Management.

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