Seeking Alpha Seeking Alpha Portfolio App for iPad  Annaly
Capital Management, Inc. (NLY), with a dividend yield of 12.8%,
is one of the highest dividend paying mortgage REITs in the U.S.
financial sector. The company demonstrates enough financial
strength to continue its dividend distribution for the
foreseeable future, and has adopted several strategies, as
mentioned in the thesis below, to reduce its sensitivity to
interest rates and other housing and mortgage market activities.
Our estimates have led us to believe that the company is best
positioned to face the challenge of decreasing interest rates.
Therefore, we reiterate our buy rating for Annaly Capital.  U.S.
Economy and Housing Sector  While the U.S. economy is not
showing any signs of relief, its housing sector—which collapsed
six years ago—seems to be gaining momentum. Bernanke, in a
testimony on Tuesday, said the U.S. economy was suffering due to
a spillover from debt-stricken Europe, as well as the path that
the U.S. fiscal policy had taken. Sin