Annaly delivered a resilient first quarter with a 1.5% economic return amid volatile markets, reflecting disciplined risk management and strategic capital deployment. The firm maintained conservative leverage and strengthened its positioning across residential credit and MSRs.

• Generated $0.76 earnings per share and raised approximately $510 million in equity, predominantly reallocating capital to credit and MSR strategies amid Agency spread tightening.
• Portfolio value remained stable at $92 billion, with strategic repositioning into lower-coupon Agency MBS to enhance cash flow durability and convexity.
• Primarily focused on balanced risk management through measured hedging, maintaining exposure to swap spreads and treasury hedges during heightened macro volatility.
• Macro backdrop includes geopolitical risks, energy shocks, and evolving bank capital rules, which favor fixed income and housing finance sectors with potential for increased bank MSR demand.
• Portfolio positioning remains opportunistic with a focus on resilience amid ongoing market volatility and changing regulatory dynamics.