Here's What the Fed Minutes Mean for Annaly

Before you go, we thought you'd like these...
Before you go close icon

Yesterday, the Federal Reserve released the minutes from its latest open market committee meeting, and in this video, Motley Fool financial analyst Matt Koppenheffer gives Annaly Capital  investors several key takeaways from those minutes. He tells us that mortgage refinance rates are still particularly high, which means that rates of homeowners paying back their mortgages early is high, too, which damages the value of Annaly's mortgage-backed securities through the loss of interest payments. Matt also tells us that the housing market is continuing to improve, and perhaps most importantly, the Fed continues to buy large numbers of mortgage-backed securities each month. In the video, Matt explains the profound effect these key points have on mortgage REITs such as Annaly.

Annaly Capital Management has a history of paying huge dividends to shareholders. But there are some crucial issues investors have to understand about Annaly's business model before buying the stock. In this brand-new premium research report on the company, our analyst runs through these absolute must-know topics, as well as the future opportunities and pitfalls of their strategy. Click here now to claim your copy.

The article Here's What the Fed Minutes Mean for Annaly originally appeared on Fool.com.

Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool owns shares of Annaly Capital Management. Try any of our Foolish newsletter services free for 30 days. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners