Annaly Capital Management: A Safe Haven for Investors in Today's Market
By Benjamin Goldman:Believe it or now, Real Estate Investment Trusts are now a viable investment option for those who are afraid of the uncertainty brewing in the current market. The United States debt crisis has been the main scapegoat for why the stock market has been bearish since the week of 7/25/2011, but there are several less-publicized events that have driven down stocks including weak manufacturing numbers, slow economic growth, and lowered consumer spending. Annaly Capital Management (NYSE:NLY) is a particularly large REIT with a market cap of over $14 billion. They specialize in using short term debt to hold a portfolio of longer term mortgage securities which for the most part come from Fannie Mae (FNMA.OB), Freddie Mac (FMCC.OB)), and Ginnie Mae. REITs trade on stock exchanges and can avoid corporate taxes by distributing 90 percent of taxable income as dividends, which make them similar to high dividend paying stocks. TheyComplete Story »
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