Annaly Capital Management

What Annaly Capital Management does

Annaly Capital Management, Inc. (NYSE: NLY), founded in 1996 and publicly traded since its October 1997 IPO, is the largest residential mortgage REIT in the United States, operating with a $107bn total portfolio and $16bn of permanent capital as of Q1 2026. The company employs a permanent-capital model to generate net income for distribution to stockholders through three on-balance-sheet investment strategies: Agency MBS (56% of dedicated capital, $92.2bn), Residential Credit (23%, $10.3bn), and Mortgage Servicing Rights (21%, $4.2bn). Its Agency segment invests in MBS and CMBS collateralized by mortgages guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae; its Residential Credit segment invests in non-Agency residential mortgages through the Onslow Bay Financial correspondent platform and OBX securitization franchise (with 100+ securitizations and $45bn+ cumulative issuance); and its MSR segment holds mortgage servicing rights providing fixed servicing fee income complementary to Agency MBS cash flows.

Annaly's technology stack includes proprietary portfolio analytics, financial and capital allocation modeling, and risk/reporting tools developed through significant in-house technology investment, augmented by MeridianLink Mortgage's loan origination system (implemented at Onslow Bay Financial in April 2026) and an 87% hedge ratio managed via TBA securities and interest rate derivatives. The company finances its portfolio through a mix of repurchase agreements, TBA dollar rolls, and equity capital raised through an at-the-market (ATM) offering program that generated $2.9bn during 2025 and $509M in Q1 2026. Capital deployment has accelerated across residential credit and MSR, supported by strategic subservicing partnerships with Rocket Mortgage (2025) and PennyMac Financial Services (October 2025, including MSR portfolio acquisition).

Annaly serves two primary customer bases: institutional and retail income-focused investors who purchase NLY common stock and four series of preferred stock (NLY.F, NLY.G, NLY.I, NLY.J) on the NYSE, and American homeowners whose mortgages are financed through the company's $107bn portfolio (estimated 1.3 million homes). The company has paid dividends for 100+ consecutive quarters, with Q2 2026 common stock dividend increased to $0.75/share (annualized $3.00, ~13.4% yield, ~15.1% return on book value). Revenue model is subscription/recurring in nature, derived from interest income on the Agency MBS book, residential credit investments, fixed MSR servicing fees, and transaction-based TBA dollar roll income, with Q1 2026 revenue of $452.69M.

Name

Annaly Capital Management

Legal name

Annaly Capital Management, Inc.

Website

https://annaly.com

Company type

Public

Founded year

1996

Operating status

Operating

Headcount range

101–250 employees

Short description

Annaly Capital Management is the largest US residential mortgage REIT, operating a $107bn diversified portfolio across Agency MBS, Residential Credit, and Mortgage Servicing Rights, financing 1.3M+ American homes and serving income-focused institutional and retail investors through quarterly dividends.

Ownership category

akta.pro rank

Product category

Residential Mortgage Finance

NAICS

Portfolio Management and Investment Advice (52394), Funds, Trusts, and Other Financial Vehicles (525)

SIC

Real Estate Investment Trusts (6798), Mortgage Bankers & Loan Correspondents (6162)

akta.pro primary industry

Real Estate Portfolio & Fund Management (Institutional/REIT/PE) (BPAJAMAJ)

akta.pro secondary industry

Real Estate Debt & Mortgage Strategies (FSAAAKAC)

Keywords

• Mortgage REIT
• Residential credit
• Agency MBS
• Mortgage servicing rights
• Diversified capital management

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Marketing or Sales

Revenue model

1. Interest Income from Agency MBS: Annaly generates interest income from its portfolio of agency mortgage-backed securities, which are collateralized by residential or commercial mortgages guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. This represents the core revenue stream from the largest portion of the portfolio.
2. Residential Credit Investment Income: Income from non-agency residential mortgage assets including whole loans and securities in the securitized product and whole loan markets, investments in CRT, prime/non-QM/SBC, prime jumbo, NPL/RPL/RTL, and CRE CLO.
3. Mortgage Servicing Rights Income: Fixed servicing fee income from MSR portfolio of $4.2 billion in market value. Portfolio provides complementary cash flows to Agency MBS investments through fixed servicing fees on residential loans.
4. TBA Dollar Roll Income: Income generated from To-Be-Announced (TBA) securities trading, which provides implied financing rates in the TBA market as an alternative to Agency repurchase agreements.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels8 records

Core offering

Annaly Capital Management is a publicly traded mortgage REIT operating a diversified investment platform of $107 billion in assets, investing across three core strategies: Agency mortgage-backed securities (MBS) guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae; Residential Credit through non-agency whole loans and securitized products via its Onslow Bay platform; and Mortgage Servicing Rights (MSR). The company generates interest income from these real estate related investments and distributes returns to stockholders through quarterly dividends.

Product overview

Annaly Capital Management is a diversified capital manager operating as a mortgage REIT with three core investment strategies on balance sheet: Agency MBS (56% of capital), Residential Credit (23% of capital), and Mortgage Servicing Rights (21% of capital). The company runs three business segments: Annaly Agency Group ($92.2bn assets) investing in government-sponsored mortgage securities; Annaly Residential Credit Group ($10.3bn assets) investing in non-Agency residential mortgages through its Onslow Bay Financial platform and OBX securitization program; and Annaly Mortgage Servicing Rights Group ($4.2bn assets) investing in MSR assets. Additional offerings include a Dividend Reinvestment Plan for shareholder share purchases.

Differentiator

Problem solved

Functional benefit

Brands

• OBX: Residential whole loan securitization platform and brand used by Onslow Bay Financial for issuing mortgage-backed securities.

Products and services

• Agency Mortgage-Backed Securities (Agency MBS) Invests in Agency MBS and Agency CMBS securities collateralized by residential or commercial mortgages guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae, generating returns without direct credit risk through interest rate hedging. Serves as the largest portfolio strategy at $92.2 billion in assets.
• Residential Credit Invests in Non-Agency residential mortgage assets within securitized product and whole loan markets, providing financing to homeowners underserved by traditional bank channels. Manages $10.3 billion in assets spanning prime jumbo, Non-QM, expanded prime, NPL/RPL/RTL, and CRE CLO investments.
• Mortgage Servicing Rights (MSR) Invests in Mortgage Servicing Rights providing the obligation to service residential loans in exchange for fixed servicing fees. $4.2 billion portfolio offers complementary cash flows to the Agency MBS strategy.
• Dividend Reinvestment and Share Purchase Plan (DRIP) Stock investment plan administered by Computershare Shareowner Services that allows shareholders to automatically reinvest dividends into additional shares of Annaly Common Stock.

Quantifiable outcome

• 1,151% total shareholder return since IPO (October 1997 through March 2026)
• +5 more outcomes

Named customers2 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature3 records

Partnerships

Six partnerships are on record, tiered important and core.

• MeridianLinkimportantTechnology or Integration · 2 April 2026Onslow Bay Financial LLC, a subsidiary of Annaly Capital Management, implemented MeridianLink Mortgage's loan origination system to enhance its non-agency mortgage loan platform. The migration to an in-house platform aims to improve operational efficiency, transparency, and scalability for Onslow Bay's non-delegated correspondent platform.
• PennyMac Financial ServicescoreStrategic or Co-development Partner · 1 October 2025Annaly entered into a strategic subservicing relationship and agreement to purchase mortgage servicing rights from PennyMac Financial Services. PennyMac handles all servicing and recapture activities for the MSR sold to Annaly, expanding Annaly's approximately $90 billion housing finance platform.
• Rocket MortgagecoreStrategic or Co-development Partner · 1 October 2024Annaly entered into a strategic subservicing relationship with Rocket Mortgage to service and handle recapture activities for a portion of Annaly's MSR portfolio. This was Annaly's first agency MSR sub-servicing partnership, announced in late 2024.
• Fannie MaecoreOthersAnnaly invests in Agency MBS guaranteed by Fannie Mae, representing a significant portion of the firm's dedicated equity in the Agency portfolio.
• Freddie MaccoreOthersAnnaly invests in Agency MBS guaranteed by Freddie Mac. The company received a 2025 Gold SHARP award from Freddie Mac recognizing superior mortgage servicing performance.
• Ginnie MaecoreOthersAnnaly invests in Agency MBS collateralized by residential or commercial mortgages guaranteed by Ginnie Mae.

Scale indicators13 records

Recent moves14 records

Expansion highlights5 records

Direct peers

• AGNC Investment Corp. AGNC is one of the largest agency mortgage REITs, directly competing with Annaly's Agency MBS strategy through similar investment in agency mortgage-backed securities, similar use of leverage, and a comparable dividend-focused investor base.
• Two Harbors Investment Corp. Two Harbors operates a similar diversified mortgage REIT model with agency MBS, residential credit (non-QM/CRT), and MSR strategies, directly mirroring Annaly's three-pillar platform and serving income-focused institutional investors.
• Chimera Investment Corporation: Chimera invests across agency MBS, residential credit, and securitized products, competing most directly with Annaly's Residential Credit Group and OBX securitization platform. It was historically affiliated with Annaly before separating in 2018.
• PennyMac Mortgage Investment Trust: PMT is a mortgage REIT with overlapping MSR and residential credit strategies and PennyMac Financial Services is itself a strategic subservicing partner of Annaly, making it both a peer and partner in the MSR ecosystem.
• Orchid Island Capital: ORC is a smaller pure-play agency mortgage REIT whose strategy and dividend-driven investor base are highly comparable to Annaly's Agency segment, though at materially smaller scale.
• ARMOUR Residential REIT: ARMOUR is a smaller agency-focused mortgage REIT that competes with Annaly for yield-seeking investors but operates with a narrower product set and smaller capital base.
• New Residential Investment Corp. (now part of Rocket Mortgage): NRZ (acquired by Rocket Mortgage) overlapped directly with Annaly's MSR and residential credit strategies; its acquisition by Rocket Mortgage — now Annaly's MSR subservicing partner — illustrates the strategic value of Annaly's MSR relationships.

Broad incumbents

• Starwood Property Trust: Starwood Property Trust is a larger, more diversified mortgage and real estate finance REIT that overlaps with Annaly in residential and commercial mortgage-related investments, offering scale and diversification that Annaly matches in the residential-only segment.
• Blackstone Mortgage Trust: BXMT is a large commercial-focused mortgage REIT under Blackstone's umbrella; it competes with Annaly in real estate debt but skews more toward senior commercial mortgage loans than Annaly's agency/residential focus.
• KKR Real Estate Finance Trust: KREF is a commercial-focused mortgage REIT sponsored by KKR that overlaps with Annaly in originating and acquiring real estate-related debt, though skews toward senior floating-rate commercial mortgages rather than agency/residential credit.

Market position

Strengths1 record

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/annaly-capital-management

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries3 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A3 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Annaly Capital Management