Turning to earnings, the largest factor quarter-over-quarter to quote an ex-PAA will lower interest expense of $186 million versus $503 million in the prior quarter due to lower average repo rates and balances as well as higher TBA [indiscernible] income of $96 million versus $44 million in the prior quarter, due to higher average balances partially offset by higher expense from the net interest component of interest-rate swaps of $65 million visits $14 million in the prior quarter and higher average balance. So balance sheet leverage is incredibly inexpensive right now and abundantly available because of the reserves in the system and in the agency space it's more favorable than structural leverage through derivatives. However for a complete and definitive understanding of the pay practices of any company, users should refer directly to the actual, complete proxy statement. Prior to that, Mr. Finkelstein held senior Agency MBS trading positions at Salomon Smith Barney, Citigroup Inc. and Barclays PLC. From 1997 to 1998, Mr. Schaefer was Managing Director and Head of Strategic Planning and Capital Management at Morgan Stanley. While financial conditions have stabilized, there is still significant uncertainty around the long-term economic picture. Mr. Finkelstein is a member of the Treasury Market Practices Group sponsored by the Federal Reserve Bank of New York as well as a member of the Financial Sector Advisory Council of the Federal Reserve Bank of Dallas. In the last twelve months, Annaly Capital Management insiders bought shares 1 times. At the time we started quarter with a swap portfolio of about nine odd years I believe, now given how long that portfolio is in duration as we mentioned last quarter provides multiples of interest rate protection relative to the assets, which are much shorter in duration. David L. Finkelstein is President, Chief Executive Officer & Director at Annaly Capital Management, Inc. Annaly is internally managed and has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. . Below are excerpts from my letter to shareholders, released April 7, 2021. Also, proxies must disclose specific detailed information regarding the pay practices for certain executives. We continue to be impressed by the resiliency of our workforce and the exemplary service that our IT infrastructure team has provided to every one of us during the time of remote work. Thank you. Given this dynamic, we increased our TBA position in the quarter and gravitated further down in coupon. David Finkelstein About Us; Blog; Press; AFLCIO.tv; Union Plus Benefits; Toggle Search Form . Select Other Years 2007 2006 For its 2021 fiscal year, ANNALY CAPITAL MANAGEMENT, listed the following executives on its annual proxy statement to the SEC . He began his investment banking career at E.F. Hutton & Company in 1976. We also announced two leadership changes, Steve Campbell was appointed as Chief Operating Officer and Glenn Votek will retire from his role as Senior Advisor at the end of August while remaining a Director on our board. From 1980 until 1984, he was a Senior Financial Analyst at Travelers Insurance Companies. Insiders at Annaly Capital Management own 0.3% of the company. So the NIM itself is not reflective of TBAs at all to your dollar role at all? Exactly, exactly and we'll see where we end the year but we feel good about where we think it is. Francine J. Bovich was elected to serve as an independent director of Annaly in 2014. Thorough reviews have been conducted to assure this data accurately reflects disclosures. From 2014 to 2020, Dr. Hannan served as Chairman of the Board & National President for Girl Scouts of the USA. So broadly speaking in agency it's probably pool pricing and in credit there could be unforeseen events given the economy that could disrupt individual assets. While at KPMG, Dr. Hannan also founded the KPMG Womens Advisory Board. Most recently he exercised 7,989 units of NLY stock worth $50,490 on 29 January 2022. . Overall we feel good about conservative positioning in the portfolio across sectors and the strength of our relationships with best in class sponsors and operating partners to mitigate in further disruption. It did get below that level in early 2019 to about 49 basis points and then the last time prior to that was 2017 and before that it was pre-crisis. So while implied volatility is very low and that's by design on part of the part of the fed and to the extent it continues to decline, it will be a more attractive hedge to our agency portfolio and I would say that in current levels, you should expect it to be a critical component of the portfolio going forward. Yeah it depends on the shape of the curve, like over the last couple of months, the term structure of repo has flattened pretty considerably, which has enabled us to extend out curve at very attractive rate. In addition, he makes $8,203,772 as Pres and CEO & Director at Annaly Capital . Mr. Finkelstein is a member of the Treasury Market Practices Group sponsored by the Federal Reserve Bank of New York. in Economics and Political Science from the University of Pennsylvania and a J.D. Numbers reported do not include change in pension value and non-qualified deferred compensation earnings. US Jobs Report and Powell Testimony Take Center Stage: Eco Week, Bond Mavens Favor Curve Wagers for Next Encounter With Jobs Data, Bank of Canada Risks Falling Too Far Behind Fed, Scotia Says, Feds Daly Says More Rate Hikes Likely Needed to Cool Inflation, Colombia Prices Rise Less than Forecast to a Fresh 24-Year High, Porsche, Ferrari E-Fuel Push at Heart of EU Engine Debate. Interim CEO Glenn Votek to Assume Role of Senior Advisor and Remain on the Board of Directors. Ms. Wolfe held a variety of roles across industries since beginning her career at E&Y in 1998, including most recently as EYs Central Region Real Estate Hospitality & Construction leader since 2017. Now more than ever, players rightly see themselves as multi-faceted entrepreneurs, and seek ways to leverage their brands in everything from real estate to venture capital. Compensation Ownership; David . Aggregate issuance under our OBX shelf has now reached 4.5 billion across 11 transactions since 2018. Prior to Barclays, Mr. Hamilton held various Managing Director roles at Citigroup, Inc. and Salomon Brothers, Inc., where he began his career. Please go ahead. So we feel good about it. After a pace of purchases at the height of the volatility to reach nearly $50 billion per day to help stabilize sector, that is transitioned to a steady run rate of $40 billion per month net of portfolio runoff, which on a gross basis equates to roughly 40% current agency issuance. Under the standard an entity recognizes its estimate of lifetime expected credit losses as an allowance, which the fed believes will result in more timely recognition of such losses and while changes in economic scenarios and asset performance in the future will impact Cecil reserves in subsequent quarters, current reserve levels should not be considered as a pervasive credit issue within the portfolio or an indication of what reserves may be recorded in the future. We delivered an economic return of nearly 15% and achieved core earnings well in excess of our right size dividend. in Education with a concentration in mathematics education and an M.B.A. with a concentration in finance and quantitative statistics, each with honors from the University of Georgia. There was a depreciation in the amount on the balance sheet of MSR, half of which was amortization and the other half of which was the multiple compression. We would expect more equity allocated to it, certainly, with the option to apply a modest amount of leverage. We further reduced the LIBOR footprint of our hedge portfolio with our swap now 80% in OIS and we reinitiated our treasury future short position that was unwound in the first quarter. All proxy statements are public filings made available to the general public by the SEC. So right now balance sheet leverage pools of finance through the repo market is more attractive than structural leverage meaning derivatives who when I say structural leverage I mean an asset whose outcome is dependent on a larger asset like derivatives are. Dr. Hannan has over 30 years of industry experience and held numerous leadership roles during her distinguished career with KPMG. The improvement in singles that the market currently believes that the majority of forbearance cases, which have stabilized over the past couple of months will ultimately be resolved. Securitization market started to show signs of life in mid-May and we issued nearly $500 million of expanded prime securities earlier this month, subsequent to quarter end. Financial Highlights. Mr. Hamilton has served as a Director of Larimar Therapeutics, Inc., a clinical-stage biotechnology company focused on developing treatments for rare complex diseases, since May 2020 when Chondrial Therapeutics, Inc. merged with Zafgen, Inc. and the combined company began operating as Larimar. Information on this page was last updated on 6/17/2022. Will His AI Plans Be Any Different? Consequently, we reduced leverage during the quarter from 6.8 times to 6.4 times and made the prudent decision to set our quarterly dividend at $0.22. The Mortgage Servicing Rights group provides the right to service residential mortgage loans in exchange for a portion of the interest payments made on the loans. Liquidity tools have sufficiently supported funding markets and credit facilities have opened channels to credit for businesses, households and local governments, the temporary adjustments to regulations have somewhat encouraged bank lending and most impactful to Annaly's portfolio the asset purchases have supported the smooth functioning of treasury and agency markets. We were certainly careful to take prudent steps during the early phase of the market recovery to ensure we are well positioned to capitalize on the opportunities that are sure to arise. This reduced our pay rate as well as shorten the maturity of our swap portfolio. Total reserves now comprise 5.32% of our acreage in MML loan portfolios as of June 30, 2020. 1 dividend stock for a LIFETIME of income. There are 11 older and 9 younger executives at Annaly Capital Management Inc. Most recently he exercised 31,721 units of NLY stock worth 194,767$ on 30 June 2022. . PHIL 21505/31505 Wonder, Magic, and Skepticism. "Athlete | Empire" presents the in-depth, intimate stories of these businesses, as told by the players themselves. The estimated Net Worth of David L Finkelstein is at least $16.4 Million dollars as of 1 February 2023. None of Annaly's achievements would have been possible without . Our next question comes from Kenneth Lee with RBC Capital Markets. The charts on this page feature a breakdown of the total annual pay for the top executives at ANNALY CAPITAL MANAGEMENT as reported in their proxy statements. Numbers reported do not include change in pension value and non-qualified deferred compensation earnings. ANNALY CAPITAL MANAGEMENT annual reports of executive compensation and pay are most commonly found in the Def 14a documents. So given the slope of the curve, given the significant decrease in front end OIS rates to zero roughly, we took the opportunity to add hedges and move down the curve and better balance out the hedge profile to bring the average life to about half what it was at the end of the first quarter and it's still about twice the duration may be a little bit more than twice the duration of the asset portfolio currently, but at 40% hedge ratio being more -- a little bit over twice the duration you get to roughly 80% to 90% may be a little bit more interest rate protection assuming a parallel shift in the curve with a still slight steepening bias which we think is the appropriate approach.