Annaly Continues to Receive Positive Media Attention 
The May 5th 2008 issue of Fortune Magazine has an article called Where to Put Your Money Now. I was stoked to see that the author inclulded one REIT, but I'm always confused by the continued praise of Annaly Capital. The article labels Annaly as a value play. The article states, "One of the enduring traits of bear markets is that good stocks inevitably get thrown out with the bad. Two such stocks are Annaly and Microsoft."
Annaly buys mortgaged-backed securites issued by the two quasi-government companies Freddie Mac and Fannie Mae. The securities purchased by Annaly are suppose to be virtually risk free as Freddie and Fannie have an "endless" supply of cash from the US govenment which created both companies.
The problem for me is that Freddie and Fannie are not 100% owned by the US Government, and this entire enterprise relies on the continued goodwill of the US Congress.
I'm actually considering buying some Annaly as the dividend is over 11%, but I'm still cautious. I feel more confident in Freddie and Fannie now that Congress is controlled by Democrats that aren't afraid to spend a little money to help people out.
Share It: 
Bookmark It: 
May.14.2008. 07:11
This article hasn't been commented yet.
* = required field