Will Annaly Capital Management's New Plan Be a Disaster?

By David Hanson and Matt Koppenheffer – May 17, 2014 at 8:00AM

NYSE: NLY

Annaly Capital Management

Market Cap

$9B

Today's Change

(1.33%) $0.24

Current Price

$18.23

Price as of April 19, 2024, 4:00 p.m. ET

Should investors be worried about a lack of consistency.

Unlike Two Harbors (TWO 1.93%) which dabbles in multiple areas of the mortgage market, Annaly Capital Management (NLY 1.33%) has historically only invested in safe, agency securities -- until now. Annaly has slowly been adding more commmerical, non-agency investments to its portfolio.

Some investors think this is a bad move and another signal that Annaly doesn't have a consistent investment process. In the following video, Motley Fool analyst David Hanson tells Matt Koppenheffer why he isn't too concerned about Annaly's recent moves.

David Hanson owns shares of Annaly Capital Management. Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.