NLY

Annaly Capital Management buys mortgages and mortgage-backed securities, which are investments made up of bundles of home loans. The company profits from the difference between what it pays to borrow money and what it earns from these mortgage investments. It is structured as a real estate investment trust (REIT), which means it pays most of its profits to shareholders as distributions rather than paying corporate income taxes. Annaly invests in both government-backed mortgages and private mortgages across residential and commercial properties.