The dividend represented 10.5% yield on our book value which is in line with our historical average while being competitive relative to our peers and various fixed income benchmarks. Our residential portfolio was roughly unchanged quarter-over-quarter at $2.6 billion as modest purchases and mark-to-market increases largely offset sales and portfolio runoff. From September 2010 to December 2011, Mr. Haylon served as Head of Investment Product Management at General Re New England Asset Management. Prior to that, he worked at AT&T and its finance subsidiary from 1986 to 1999 in various financial management roles. For its 2021 fiscal year, ANNALY CAPITAL MANAGEMENT, listed the following CEO pay ratio data on its annual proxy statement to the SEC. Thanks. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. [Operator instructions] Our first question comes from Eric Hagen with KBW. Corporate Responsibility Committee (Chair)NCG CommitteeRisk Committee. Prior to that, Mr. Finkelstein held senior Agency MBS trading positions at Salomon Smith Barney, Citigroup Inc. and Barclays PLC. You may retrieve the full proxy statement by going to the Securities and Exchange Commission (SEC) website at www.sec.gov and entering the company's name and then looking in the first column for an entry of "Form DEF 14A" (or any similar code). So is it fair to say that the repurchase will be part of the flaps in terms of using that excess earnings in the short term? You may retrieve the full proxy statement by going to the Securities and Exchange Commission (SEC) website at www.sec.gov and entering the company's name and then looking in the first column for an entry of "Form DEF 14A" (or any similar code). In the last twelve months, Annaly Capital Management insiders bought shares 1 times. We've isolated around where we ended the quarter and right now as about last night it's up roughly 1%. The oldest executive at Annaly Capital Management Inc is FrancineBovich, 68, who is the Independent Director. Anthony C. Green is Chief Corporate Officer and Chief Legal Officer of Annaly. Please disable your ad-blocker and refresh. We add the incremental dollar role income to core income and then the outcome. Prior to joining Annaly in 2013, Mr. Finkelstein served for four years as an Officer in the Markets Group . So balance sheet leverage is incredibly inexpensive right now and abundantly available because of the reserves in the system and in the agency space it's more favorable than structural leverage through derivatives. As a result we ran numerous scenarios in excess of 20, to determine the appropriate amount of Cecil reserves to the quarter and ultimately booked reserves that were considerably more conservative than our base case scenario. Corporate Responsibility CommitteeRisk Committee. Of note, while last quarter each of our credit meters providing an in-depth look at their respective markets and portfolios to be efficient, I'll provide those updates today but as Purvi noted each of our business heads are here as well to join in Q&A. in Business Administration from the University of Washington and a M.B.A. from the University of Chicago, Booth School of Business. Mr. Finkelstein has 25 years of experience in fixed income investments. She is also a graduate of the Chicago Management Institute at the University of Chicago, Booth School of Business and the Institute of Comparative Political & Economic Systems at Georgetown University. in Finance and Economics from Kean University/University of Arizona, a M.B.A in Finance from Rutgers University and attended the Executive Education Program of the Colgate W. Darden Graduate School of Business Administration at the University of Virginia. Thanks Brendon for your help and we hope everybody stay safe. A lot of that is driven by the tailwind from the fed and specialism and TBAs where our role income doubled over the quarter and it is currently existent today and if we look at past episodes it [indiscernible] persisted for some time. Thank you for attending today's presentation. And everything you said the two words that stood out everything changes. Prior to the 1997 merger of Dean Witter, Discover and Morgan Stanley, Mr. Schaefer was Executive Vice President, Investment Banking and Head of Corporate Finance at Dean Witter, a position he had held since 1991. Ms. Denahan has a B.S. investor@annaly.com, Brunswick Group In comparison our base case scenario was altered in a modest release of reserve, which we felt inappropriate given the continued economic uncertainty centered around the evolving pandemic. Alex Yankus Okay. [Operator instructions] Our next question comes from George Bahamondes with Deutsche Bank. We have to look at how attractive assets are and then put that in the context of where thee stock prices make a buyback decision based on that. NEW YORK-(BUSINESS WIRE)-Annaly Capital Management, Inc. (NYSE: NLY) ("Annaly" or the "Company") today announced its financial results for the quarter ended March 31, 2022. Mr. Finkelstein also holds the Chartered Financial Analyst designation. After a pace of purchases at the height of the volatility to reach nearly $50 billion per day to help stabilize sector, that is transitioned to a steady run rate of $40 billion per month net of portfolio runoff, which on a gross basis equates to roughly 40% current agency issuance. The stock was acquired at an average cost of $5.56 per share, with a total value of $1,112,000.00. We were certainly careful to take prudent steps during the early phase of the market recovery to ensure we are well positioned to capitalize on the opportunities that are sure to arise. From 1980 until 1984, he was a Senior Financial Analyst at Travelers Insurance Companies. Good morning and nice quarter guys. As we gain further clarity around the long-term implications of COVID, we are reassured by the stable and defensive nature of our portfolio and remain confident in its ability to withstand prolonged bouts of market volatility. The proxy statement's main purpose is to alert shareholders to the annual meeting and provide them information about the issues that will be voted on during the annual meeting, including decisions such as electing directors, ratifying the selection of auditors, and other shareholder-related decisions, including shareholder-initiated initiatives. NEW YORK -- (BUSINESS WIRE)-- Annaly Capital Management, Inc. (NYSE: NLY) ("Annaly" or the "Company") announced today the Board of Directors (the "Board") has elected David L. Finkelstein as its Chief Executive Officer and a . David Finkelstein, Annaly's Chief Executive Officer and Chief Investment Officer, commented: "Since 1997, Annaly has become the largest mortgage REIT in the world and delivered $24 billion in . But the good news is, if China invades Taiwan, there is a way to protect yourself. There are no executives at Annaly Capital Management Inc getting paid more. This net worth evaluation does not reflect any other assets that Mr. Finkelstein may own. Content referenced in today's call can be found in our second quarter 2020 investor presentation and second quarter 2020 financial supplement, both found under the Presentation section of our website. Ms. Bovich has over 30 years of investment management experience lastly serving as a Managing Director of Morgan Stanley Investment Management from 1993 through 2010. And prepay is obviously being the uncertainty and the risk which we I don't think you heard a lot about I'm sure this quarter and I think we managed prepay risk as well as anybody. Annaly actively integrates ESG considerations into its overall strategy through the following key areas: corporate governance, human capital, responsible investments and the environment. Please go ahead. Total core income is used to buy, Eric. David L. Finkelstein is Chief Executive Officer and President of Annaly. Actual events and results may differ materially from these forward-looking statements. GAAP net income improved this quarter as a result of higher GAAP net interest income of $399 million, primarily due to lower interest expense from reduced repo rates and balances and we also experienced lower losses on our core portfolio of $92 million. Is this happening to you frequently? ANNALY CAPITAL MANAGEMENT annual reports of executive compensation and pay are most commonly found in the Def 14a documents. If the United States goes to war with another nuclear armed superpower, this could have a devastating impact on your retirement portfolio. Just on the TBAs again just every mortgage rate, it feels like accounts for $I specialness a little differently in their NIM. and LL.M. Exactly, exactly and we'll see where we end the year but we feel good about where we think it is. Learn More on David L. Finkelstein's salary. We believe our focused industry-specific positioning within nondiscretionary defensive and mission-critical names will generate the outperformance for peers that will further differentiate our brand in the sector. Mr. Finkelstein was elected to serve as a director of Annaly in March 2020. The portfolio generated 188 points of NIM up Q1 of 118 basis points, driven primarily by the decrease in cost on funds that I mentioned a moment ago. from Loras College. Is it picked up in your asset yield or your funding costs or both? Also as David mentioned, our internalization transaction closed at the end of the quarter and we anticipate generating cost savings over the long time as we embark on being an internally managed company. We feel good about where pools are at. NEW YORK -- (BUSINESS WIRE)-- Annaly Capital Management, Inc. (the "Company" or "Annaly") today announced management promotions within its senior executive team, which are effective immediately. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, This Week in Crypto: Ukraine War, Marathon Digital, FTX. This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements which are based on various assumptions (some of which are beyond our control) and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as may, will, believe, expect, anticipate, continue, or similar terms or variations on those terms or the negative of those terms. Mr. Finkelstein was elected to serve as a director of Annaly in March 2020. Nov 07, 2016. Book value increased our GAAP net income of $856 million or $0.58 per share, which includes $0.05 related to Cecil and specific reserves and higher other comprehensive income of $721 million or $0.51 per share on improved valuations on agency MBS resulting from lower market rates. Volatility is low and the fed is specifically directing volatility lower and they also happen to be a huge tailwind in terms of purchases of agency MBS, so the technicals are very favorable and to your point, it does appear to be a very good backdrop for the foreseeable future for agency. Dr. Hannan previously served as the Midwest Area Managing Partner for KPMGs Tax Services. Mr. . Signaling from a fed on continued low rates combined with considerable injection of additional reserves in the financial system through repo operation and asset purchases have led to very stable funding conditions with repo markets experiencing no signs of stress through the quarter even on pivotal month end and quarter end days 1.8. [Operator Instructions] After todays presentation, there will be an opportunity to ask questions. Total reserves now comprise 5.32% of our acreage in MML loan portfolios as of June 30, 2020. Wallmine is a radically better financial terminal. So first of all with respect to the repositioning, what we experienced in the quarter was initially a pretty insignificant steepening of the curve, which we anticipated I think got to roughly 20 basis points to 25 basis points higher than it was now. We don't complete clarity on the economy and some of that runoff could go into the agency sector. Mr. Finkelstein also holds the Chartered Financial Analyst designation. The housing market remained strong given long-term positive fundamentals, which we believe will help the ultimate recovery. David L. Finkelstein is Chief Executive Officer and Chief Investment Officer of Annaly. These initiatives are a testament to our focus on driving shareholder value, ensuring that the firm as a whole, our structure as well as our portfolio is positioned to continue outperforming as our second quarter results demonstrate. david finkelstein annaly compensationmostar bridge jump injuries. Vicki Williams was appointed to serve as an independent director of Annaly effective January 2018. Get notified the next time David L. Finkelstein buys or sells Annaly Capital Management stock. David Finkelstein-- Chief Executive Officer and Chief Investment Officer Yeah. The Agency group invests in agency mortgage-backed securities. Beyond just prepays is what happens to pool pricing over the next quarter or two. And to repo financing remains ample. Now, even Taiwan's own foreign minister is saying that China is on the cusp of a full scale invasion. We recorded reserves associated with our credit businesses of $68.8 million on funded commitments during the second quarter. He was President and Chief Operating Officer of the Global Wealth Management division of Morgan Stanley from 2000 to 2005. This concludes our question-and-answer session. Yeah it depends on the shape of the curve, like over the last couple of months, the term structure of repo has flattened pretty considerably, which has enabled us to extend out curve at very attractive rate. Do you expect any meaningful shift in terms of equity capital allocation going forward, thanks? So we don't expect a meaningful increase in agency, but over the near term you can see a small uptick. While our portfolio speech did experience an increase on the quarter, prepays on our overall portfolio were notably lower than the GSE universe, which paid roughly eight CPR faster despite the higher average coupon of our portfolio relative to the universe. He was Chief Financial Officer of the Phoenix Companies, Inc. from 2004 until 2007, and Executive Vice President and Chief Investment Officer of the Phoenix Companies in 2002 and 2003. Look, first of all I'll talk about the footprint and agency derivatives for example and what we're talking about here Eric is the difference between balance sheet leverage and instructional leverage. The decline in portfolio size is driven by approximately $53 million in loan payoff as well as securities sales. Thank you, Purvi and good morning, everyone and thanks for joining us on our second quarter earnings call. Mr. Haylon received a B.A. With respect to our CRE portfolio specifically, total assets at quarter end of $2.5 billion represented a slight decrease while economic interest remained essentially flat. Mr A is 48, he's been the Pres and CEO & Director of Annaly Capital Management Inc since . Please note today's event is being recorded. Ms. Wolfe is a Certified Public Accountant in the states of New York, California, Illinois and Pennsylvania. Kathy Hopinkah Hannan, Ph.D., C.P.A. Prior to joining Annaly in 2013, Mr. Finkelstein served for four years as an Officer in the . In credit as we've said, we like our portfolio. So the NIM itself is not reflective of TBAs at all to your dollar role at all? Data Year: 2021. New deal activity is primarily relegated to more broadly syndicated loans however, the context first lien executions on larger transactions have tightened 75 basis points to 100 basis points over the past quarter, while traditional middle-market has shown less movement in pricing. Sure. David Finkelstein - President, CEO & Director. from the University of Michigan and J.D. David L. Finkelstein is President, Chief Executive Officer & Director at Annaly Capital Management, Inc. This Supreme Court Case Could Redefine Crime, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, More Iranian Schoolgirls Sickened in Suspected Poisoning Wave, No Major Offer Expected on Childcare in UK Budget, Oil Investors Get $128 Billion Handout as Doubts Grow About Fossil Fuels, Climate Change Is Launching a MutantSeed Space Race, This Former Factory Is Now New Taipeis Edgiest Project, What Do You Want to See in a Covid Memorial? Current positions of David Finkelstein. However for a complete and definitive understanding of the pay practices of any company, users should refer directly to the actual, complete proxy statement. I suspect that one of the things that influences the outlook is reinvestment risk as the speeds pick up. David L. Finkelstein, who has been serving as Annaly's Chief Investment Officer, Agency and RMBS, has been named Annaly's . Mr. Votek holds a B.S. David L. Finkelstein is President, Chief Executive Officer & Director at Annaly Capital Management, Inc. Interim CEO Glenn Votek to Assume Role of Senior Advisor and Remain on the Board of Directors. On average, Mr trades about 51,067 units every 152 days since 2016. In Blacklisting Inspur, US Targets Partner Used by Intel and IBM, Twitter Revenue, Earnings Fell About 40% in December, WSJ Says, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, Bolsonaro Says Mission Isnt Over as US Conservatives Fete Him, Biden Closes In on Order to Restrict US Investment in China Tech, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, Tom Sizemore, 'Saving Private Ryan' Actor, Dies at 61. Most recently he exercised 31,721 units of NLY stock worth $179,224 on 30 June 2022. . As I mentioned we out-earned the dividend by $0.05 this quarter and absent another market dislocation or other foreseen developments, we expect Q3 core canings to also the dividend. Given this dynamic, we increased our TBA position in the quarter and gravitated further down in coupon. Ms. Wolfe held a variety of roles across industries since beginning her career at E&Y in 1998, including most recently as EYs Central Region Real Estate Hospitality & Construction leader since 2017. Securitization market started to show signs of life in mid-May and we issued nearly $500 million of expanded prime securities earlier this month, subsequent to quarter end. These and our other ESG milestones have helped create durable value for all of our stakeholders., Corporate Responsibility Report Highlights. Mr. Schaefer received a B.B.A. Chief Corporate OfficerChief Legal Officer. We're experiencing a meaningful imbalance between supply and demand as a cyclically low number of housing units, meets continued strong household formations and anecdotal evidence suggests that pandemic disruptions that limited impact on the home buying and refinancing processes. For its 2021 fiscal year, ANNALY CAPITAL MANAGEMENT, listed the following CEO pay ratio data on its annual proxy statement to the SEC. The corporate mailing address for Mr. Finkelstein and other Annaly Capital Management executives is 1211 AVENUE OF THE AMERICAS, NEW YORK NY, 10036. Annaly Capital Management's insider roster includes David Finkelstein (CEO), and Thomas Hamilton (Director). The information shown here is a reporting of information included in the company's proxy statement. 2022 Thank you, David and good morning, everyone. With the improved stability in the financial markets, we've seen an improvement of lenders appetite to finance credit assets particularly in the residential space in anticipation of the expiration of our FHLB membership in February of 2021, we're executing an offset financing strategy involving committed funding facilities for our residential credit business and as David mentioned, we maintain a strong presence in residential securitization market. I think that's probably the best description of what we brought them through the shares. Prior to joining Annaly in April 2015, Mr. Campbell held various roles over six years at Fortress Investment Group LLC, including serving as a Managing Director in the Credit Funds business. Prior to joining Annaly in 2009, Mr. Green was a partner in the Corporate, Securities, Mergers & Acquisitions Group at K&L Gates LLP. Annaly Capital Management, Inc. (NYSE: NLY) (the "Company" or "Annaly") announced today the publication of its second corporate responsibility report for the year 2020, titled Leading with Purpose.The report demonstrates Annaly's continued focus on environmental, social and governance ("ESG") endeavors and provides an update on Annaly's ESG goals and commitments. Mr. Finkelstein is a member of the Treasury Market Practices Group sponsored by the Federal Reserve Bank of New York. Yeah that's great. Just one [indiscernible] quarter, really favorable backdrop funding cost attractive, specialist TV end market. US Jobs Report and Powell Testimony Take Center Stage: Eco Week, Bond Mavens Favor Curve Wagers for Next Encounter With Jobs Data, Bank of Canada Risks Falling Too Far Behind Fed, Scotia Says, Feds Daly Says More Rate Hikes Likely Needed to Cool Inflation, Colombia Prices Rise Less than Forecast to a Fresh 24-Year High, Porsche, Ferrari E-Fuel Push at Heart of EU Engine Debate. The proxy must be sent to every shareholder in advance of the company's annual shareholders meeting. Overall, we maintained a more constructive view of the operating environment and our ability to deliver compelling returns as each of our businesses respected sectors begins to emerge from the initial volatility and destruction caused by the pandemic. Now core earnings in Q2 were above that dividend and we expect them to be so in Q3. You can see the complete history of Mr Finkelstein stock trades at the bottom of the page. david finkelstein annaly compensation. in Business Administration from the University of Washington and a M.B.A. from the University of Chicago, Booth School of Business. Mr. Finkelstein was elected to serve as a director of Annaly in March 2020. in Economics from Connecticut College and an M.B.A. in Finance from New York University. David L. Finkelstein has not been actively trading shares of Annaly Capital Management within the last three months. Other Compensation covers all compensation-like awards that don't fit in any of these other standard categories. 1-888-8Annaly California Weighs $360,000 in Reparations to Eligible Black Residents. There been some signs that the worst of the economic distress may be behind us although the recent surge in cases in some areas of the US demonstrates the fragile nature of the recovery. Ms. Wolfe has over 20 years of experience in accounting, of which 13 years were focused solely in real estate practice. Most recently he exercised 7,989 units of NLY stock worth $50,490 on 29 January 2022. . Please. With respect to the incremental benefit of the TBA position for the second quarter, I'll say I think the actual dollar contribution or in pennies was about $0.07 and with respect to the NIM contribution, Serena you can. in Accounting from the University of Notre Dame and a M.B.A. from the Harvard Graduate School of Business. On average, Annaly Capital Management Inc executives and independent directors trade stock every 35 days with the average trade being worth of $908,853. So while implied volatility is very low and that's by design on part of the part of the fed and to the extent it continues to decline, it will be a more attractive hedge to our agency portfolio and I would say that in current levels, you should expect it to be a critical component of the portfolio going forward. I didn't in the prepared comments. You may now disconnect. We also continue to take advantage of the attractive low levels of volatility to hedge the tail risk of a sharp rise in rates in the long end of the yield curve and as such, we replaced much of our legacy swaps in position with additional out of the money payers options. Mr. Haylon has served as a Managing Director at Conning, Inc. since January 2012 and previously served as Head of Asset Management Sales, Products and Marketing from December 2014 until June 2018 and as Head of Investment Products from January 2012 until December 2014. So we feel good about it. My No. He began his investment banking career at E.F. Hutton & Company in 1976. . I would like to turn the conference back over to David Finkelstein for any closing remarks. Thanks again. However for a complete and definitive understanding of the pay practices of any company, users should refer directly to the actual, complete proxy statement. Comprehensive performance, salary and tenure analysis for the CEO, board and leadership team. In addition to her roles at KPMG, as a Native American Indian and member of the Ho-Chunk Nation Tribe, Dr. Hannan served on President George W. Bushs National Advisory Council on Indian Education. 2015. Mr. David L. Finkelstein C.F.A. We would expect more equity allocated to it, certainly, with the option to apply a modest amount of leverage. Our next question comes from Rick Shane with JPMorgan. Net Worth The estimated Net Worth of David L Finkelstein is at least Annaly Capital Management Inc . biography. Mr. Finkelstein received a B.A. As always we spent time analyzing the results of the reserve calculations and ensuring our expectations align with the quality of the portfolio and the performance of the borrowers. This button displays the currently selected search type. It's been relatively calm. This report is not for commercial use. Additionally during the second quarter, we utilized our share buyback program and have now repurchased $175 million common stock year-to-date. However, non-agency lending has been somewhat slow to redevelop as credit standards have tightened relative to pre-pandemic underwriting and mortgage originators tend to focused more on agency originations in light of fewer frictions in a wide primary secondary spread. Annaly Capital Management Inc executives and other stock owners filed with the SEC include: Track performance, allocation, dividends, and risks, Annotate, download XLSX & look up similar tables, Filter, compare, and track coins & tokens, insiders at Annaly Capital Management Inc, Stocks and cryptocurrency portfolio tracker. And actually as you're answering that question, I'm realizing there's another element to that, which is that some of that additional that excess earnings is coming back to you shareholders in the form of the repurchases at a discount as well. So we like to see it flatten a little bit further and we think it should given the posture the fed and when you look at the last set of economic projections, so lift off not likely to occur for the next couple of years, you could see some further flattening in the term curve but we're watching it and we're making incremental steps to term out our repo. None of Annaly's achievements would have been possible without . 212-333-3810 On average, Annaly Capital Management Inc executives and independent directors trade stock every 35 days with the average trade being worth of $908,853. [Operator Instructions] Please note this event is being recorded. This information is according to proxy statements filed for the 2021 fiscal year. So it's reflected in your funding cost. . It's all dependent Rick on the attractiveness of the repurchase option relative to other options in our capital allocation policy. Consisting of $22 million of additional reserves during the quarter primarily resulting from the impacts of COVID-19 on our [indiscernible] and more general reserves related to forecast for a deterioration in economic conditions and market values of $46.8 million. And as part of our preparation, we've chosen to be conservative with our leverage as well as our dividend. The report demonstrates Annalys continued focus on setting and measuring progress on environmental, social and governance (ESG) goals, as well as its commitment to providing increased disclosure and transparency. Annaly Capital Management Inc executives and other stock owners filed with the SEC include: Track performance, allocation, dividends, and risks, Annotate, download XLSX & look up similar tables, Filter, compare, and track coins & tokens, insiders at Annaly Capital Management Inc, Stocks and cryptocurrency portfolio tracker. Annaly is internally managed and has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Mr. Schaefer was Executive Vice President and Chief Strategic and Administrative Officer of Morgan Stanley from 1998 to 2000. None of Annaly's achievements would have been possible without . On a more positive note, multifamily remained strong throughout the quarter. From 2014 to 2020, Dr. Hannan served as Chairman of the Board & National President for Girl Scouts of the USA. Michael Haylon was elected to serve as an independent director of Annaly in 2008. Annaly is internally managed and has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Following the completion of the transaction, the chief executive officer now directly owns 1,669,013 shares of the company's stock, valued at $9,279,712.28. These funds represent a broad scope of investment strategies including equities, taxable fixed income, municipal bonds, and cash management. He received an undergraduate degree from the University of Washington and an MBA from The University of Chicago Booth School of Business.