Annaly Capital Management, Inc. Q3 2026 Earnings Recap

Annaly’s shares fell 1.5% after earnings. The quarter was marked by a negative 7.6% economic return as rising rates and wider Agency MBS spreads pressured the portfolio, partly offset by earnings per share of $0.80.

Key Takeaways

• Economic return was **negative 7.6%**; EAD was **$0.80 per share**, above the dividend.
• The 10-year Treasury yield rose **82 basis points** during the quarter, while mortgage rates reached **7.5%**; management said volatility drove Agency MBS spread widening and underperformance.
• The Agency portfolio declined modestly to **$92 billion** in market value, or **55% of firm capital**. Annaly added about **$2 billion** in MBS during Q3 and rotated more than **$2 billion** in seasoned pools into higher-coupon TBAs early in Q4.
• Residential credit was roughly flat at **$10.4 billion** in market value. Onslow Bay recorded **$7 billion** of lock volume and **$5.8 billion** of fundings, its highest quarterly funding volume since inception.
• MSR market value increased to **$4.3 billion**, representing **22% of firm capital**. Annaly also issued **$757 million** in common equity and announced redemption of **$443 million** of floating-rate preferred stock.