Meine TRADING-WELT

... Annaly is by far the largest Mortgage REIT in the world, so much so that an investment in Annaly is often said to be an investment in the Mortgage REIT sector. The company makes money by borrowing short and purchasing notes with longer durations, and the associated higher interest rates. In other words, Annaly earns income on the spread between short and long-term interest rates. When long-term rates tick downward – as they did earlier this year when the yield curve inverted – that spells bad news for Annaly, which now has to borrow at higher short-term rates. However, when short-term rates are dependably lower than long-term rates, Annaly can reliably earn income. Thanks to the Fed’s decision to keep rates steady for the time being, this is exactly the type of climate Annaly relishes.