NLY · Annaly Capital Management Q2 FY2026 earnings call record财报电话会记录

“Price pressures have been driven by a confluence of factors, including the energy price shock from the conflict in the Middle East, residual effects from tariffs, and strong demand for computing equipment given the AI build-out.”

“Despite this pressure on the bond market, lower rate volatility provided a tailwind for our portfolio this past quarter, and we delivered a 5.5% economic return, once again demonstrating the strong performance of our diversified housing finance model.”

“Given this attractive environment, we grew our Agency portfolio by roughly $3 billion, ending the quarter at $95 billion in market value, which increased our capital allocation to Agency to 57%.”

“Late in the second quarter, pool valuations became more attractive as GSE demand waned, as a consequence, we expect new investments to be more balanced across TBAs and specified pools.”

“Despite record volumes, the credit quality of our loan pipeline continues to improve, best evidenced by the locked pipeline 765 FICO with 67% CLTV.”

“Annaly remains the largest issuer of Expanded Credit mortgages and the second largest issuer overall as we closed 13 deals for $6.8 billion in principal balance in the second quarter, creating approximately $780 million of proprietary investments.”

“Bulk supply in the second quarter decreased modestly from Q1, though we expect supply to remain healthy throughout the balance of the year given ongoing originator profitability constraints and industry consolidation.”

“We're not reliant on loan volumes to sustain the economics of our portfolios, which allows us to remain selective, invest with scale, and allocate capital to the opportunities offering the most attractive risk-adjusted returns.”

“Including our $0.75 quarterly dividend, we generated a positive economic return of 5.5% for the quarter, bringing our economic return for the first half of the year to 6.9%.”

“Earnings available for distribution per share increased by $0.03 to $0.79 per share, Exceeded our newly increased quarterly dividend of $0.75 per share.”

“The increase was primarily driven by higher average yields on our Agency portfolio, as our weighted average coupon increased 11 basis points to 5.11%, as well as higher securitization volumes within our Residential Credit business and favorable funding costs, with average repo rates declining 6 basis points to 3.84% during the quarter.”

“The supply has been more muted than what we expected at the beginning of the year, with most people expecting net supply around $160 billion for 2026 compared to what we had penciled in at around $200 billion at the beginning of the year.”