Overview
Annaly Capital Management, Inc. is a diversified capital manager and mortgage real estate investment trust focused on residential mortgage finance. It invests primarily in mortgage-related assets through three core areas: Agency investments, Residential Credit, and Mortgage Servicing Rights (MSR). Its business is centered on U.S. housing and mortgage markets.[1][2][3][4]
The company’s stated mission is “Powering American Homeownership.” In FY2025, Annaly reported interest income of approximately $5.96 billion and had 212 employees as of December 31, 2025.[5][6][7] [1][2][3][4][5][6][7][4][5]
Products & services
Annaly’s principal offerings are investments in mortgage-related assets. Its Agency portfolio includes mortgage-backed securities (MBS)—including pass-throughs, collateralized mortgage obligations, interest-only securities and inverse floaters—as well as to-be-announced (TBA) forward contracts for Agency pass-throughs and Agency commercial MBS. Its credit investments include non-Agency residential mortgage loans and MBS, credit-risk-transfer securities, and securitizations backed by prime, prime jumbo, non-qualified mortgage, small-balance commercial, non-performing, re-performing and residential-transition loans. Mortgage servicing rights (MSR) are rights to service residential loan pools in return for a portion of borrowers’ interest payments.[8][9] Agency MBS principal and interest are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae; Ginnie Mae certificates carry a direct U.S. government guarantee.[10]
Annaly’s wholly owned Onslow Bay subsidiary is a residential-credit asset-creation and securitization platform. In 2025, it priced 29 securitizations totaling $15.2 billion and settled $18 billion of whole loans; its retained securities increased by $990 million. The platform also completed five private deals tailored to partners’ target durations.[11]
By year-end 2025, Annaly’s capital allocation was 62% Agency, 19% MSR and 19% Residential Credit; these are portfolio allocation figures, not percentages of earnings or performance.[12] In Q2 2026, its MBS composition was 90% 30-year securities, 8% Agency CMBS, 1% 15-year securities, and less than 1% each in interest-only/inverse-interest-only securities and adjustable-rate mortgages.[13] [8][9][10][11][12][13]
Geographic presence
Annaly Capital Management’s principal executive office is in New York, and its official reporting materials also identify a Dallas office. The company reported 212 employees as of December 31, 2025, but the cited disclosure does not provide their geographic distribution.[14][15][7]
The latest located state-level geographic breakdown, for FY2025, covers residential mortgage-loan unpaid principal balance rather than the entire investment portfolio: California accounted for 39.2%, New York 11.3%, Florida 8.7%, Texas 5.3%, and all other locations 35.5%.[16] The available sources do not provide geographic revenue percentages; the loan-collateral data indicates U.S. exposure but does not by itself establish that all company activity is domestic.[16][10] [14][15][7][16][16][16][16][16][10][15]
Business segments
Annaly reports three operating segments. Agency invests in Agency pass-through and other Agency mortgage-backed securities, TBA forward contracts, and Agency commercial mortgage-backed securities. Residential Credit focuses on non-Agency residential mortgage loans and securities, and credit-risk-transfer transactions. Mortgage Servicing Rights (MSR) holds rights to service residential mortgage pools in exchange for a portion of loan interest payments.[8][17]
By total assets, the approximate segment mix was **67.7% Agency, 29.0% Residential Credit, and 3.2% MSR** at December 31, 2025; at June 30, 2026, it was **63.0%, 33.5%, and 3.5%**, respectively. These percentages indicate asset mix, not revenue or earnings contribution. Annaly identifies comprehensive income as the measure used to assess segment profit or loss.[18][19][20] [8][17][18][18][18][18][19][19][19][19][20]
Company history
Annaly Capital Management was incorporated in Maryland on November 25, 1996, by co-founders Michael A. J. Farrell and Wellington J. Denahan. It began operations in February 1997 as a mortgage-backed securities investor and completed its initial public offering in October 1997.[21][22]
The company expanded beyond its original mortgage-focused business through acquisitions and new platforms: it acquired fixed-income manager FIDAC in 2004, Merganser Capital Management in 2008, and CreXus Investment Corp. in 2013. It broadened its mortgage-REIT holdings with the acquisitions of Hatteras Financial in 2016 and MTGE Investment Corp. in 2018.[21][23][24]
Following Farrell’s death in 2012, Denahan became chair and CEO; Kevin Keyes succeeded her as CEO in 2015. In 2020, Annaly completed the acquisition of its external manager and became internally managed, with David Finkelstein appointed CEO. In 2021, it sold substantially all of its commercial real estate assets, marking a renewed focus on residential mortgage finance.[25][26][27][28] [21][22][23][24][25][26][27][28][22][23][24][25][26][27][28]
Sources
- ANNALY CAPITAL MANAGEMENT INC — Full financial report (2025 Y)
- www.annaly.com[4]
- www.annaly.com[5]
- ANNALY CAPITAL MANAGEMENT INC — Presentation (2025 Y)[12]
- ANNALY CAPITAL MANAGEMENT INC — Presentation (2026 Q 2)[13]
- ANNALY CAPITAL MANAGEMENT INC — Full financial report (2026 Q 2)
- www.annaly.com[15]
- ANNALY CAPITAL MANAGEMENT INC — Full financial report (2013 Q 2)[21]
- www.annaly.com[22]
- www.annaly.com[23]
- www.annaly.com[24]
- www.annaly.com[25]
- www.annaly.com[26]
- www.annaly.com[27]
- www.annaly.com[28]
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