Skip to main content

ANNALY CAPITAL MANAGEMENT INC

For the period ended Mar 31, 2025. Filed May 8, 2025.

View on SEC.gov

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2025 · Filed May 8, 2025

NLY$18.72-1.2%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

See the whole filing, with its images and exhibits
Contents

Economic Leverage and Economic Capital Ratios

We use capital coupled with borrowed funds to invest primarily in real estate related investments, earning the spread between the yield on our assets and the cost of our borrowings and hedging activities. Our capital structure is designed to offer an efficient complement of funding sources to generate positive risk-adjusted returns for our stockholders while maintaining appropriate liquidity to support our business and meet our financial obligations under periods of market stress. To maintain our desired capital profile, we utilize a mix of debt and equity funding. Debt funding may include the use of repurchase agreements, loans, securitizations, participations issued, lines of credit, asset backed lending facilities, corporate bond issuance, convertible bonds or other liabilities. Equity capital primarily consists of common and preferred stock.

Our economic leverage ratio is computed as the sum of recourse debt, cost basis of TBA derivatives outstanding, and net forward purchases (sales) of investments divided by total equity. Recourse debt consists of repurchase agreements, other secured financing, and U.S Treasury securities sold, not yet purchased. Debt issued by securitization vehicles and participations issued are non-recourse to us and are excluded from economic leverage.

The following table presents a reconciliation of GAAP debt to economic debt for purposes of calculating our economic leverage ratio for the periods presented:

As of
March 31, 2025March 31, 2024
Economic leverage ratio reconciliation · (dollars in thousands)
Repurchase agreements$61,659,460$58,975,232
Other secured financing900,000600,000
Debt issued by securitization vehicles21,802,19313,690,967
Participations issued1,748,2731,161,323
U.S. Treasury securities sold, not yet purchased2,519,1252,077,404
Total GAAP debt$88,629,051$76,504,926
Less Non-recourse debt:
Debt issued by securitization vehicles$(21,802,193)$(13,690,967)
Participations issued(1,748,273)(1,161,323)
Total recourse debt$65,078,585$61,652,636
Plus / (Less):
Cost basis of TBA derivatives6,612,7551,136,788
Payable for unsettled trades2,304,7742,556,798
Receivable for unsettled trades(2,523)(941,366)
Economic debt *$73,993,591$64,404,856
Total equity$13,084,508$11,496,113
Economic leverage ratio *5.7:15.6:1
* Represents a non-GAAP financial measure. Refer to the disclosure within this section above for additional information on non-GAAP financial measures.

The following table presents a reconciliation of GAAP total assets to economic total assets for purposes of calculating our economic capital ratio for the periods presented:

As of
March 31, 2025March 31, 2024
Economic capital ratio reconciliation · (dollars in thousands)
Total GAAP assets$105,115,346$91,483,546
Less:
Gross unrealized gains on TBA derivatives (1)(35,095)(7,220)
Debt issued by securitization vehicles(21,802,193)(13,690,967)
Plus:
Implied market value of TBA derivatives6,635,3831,133,305
Total economic assets *$89,913,441$78,918,664
Total equity$13,084,508$11,496,113
Economic capital ratio (2) *14.6%14.6%
* Represents a non-GAAP financial measure. Refer to the disclosure within this section above for additional information on non-GAAP financial measures.(1) Included in Derivative assets in the Consolidated Statements of Financial Condition.(2) Economic capital ratio is computed as total equity divided by total economic assets.
ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.