Annaly: 9% Yield Better Than 7% Yield Preferred Share

Seeking AlphaREITsAnnaly: 9% Yield Better Than 7% Yield Preferred ShareOct. 10, 2020 7:00 AM ET|| About: Annaly Capital Management, Inc. (NLY), NLY.PG, Includes: AGNC, AGNCM, AGNCN, AGNCO, AGNCP, ANH, ANH.PA, ANH.PB, ANH.PC, NLY.PD, NLY.PF, NLY.PIby: Colorado Wealth Management FundColorado Wealth Management Fund The REIT ForumThe #1 REIT Service Measured By Total ReturnsSummaryWe recently sold our position in NLY-G from Annaly Capital. We are not discussing ratings on NLY in this article, we are only talking about the preferred shares.
When looking to reallocate capital, investors should consider multiple metrics.
ANH currently has two preferred shares we will be looking at as an alternative.
We believe ANH-C is the best preferred share from ANH at recent prices.
Trading through preferred shares has enabled us to generate higher returns by capturing on failures in market prices.
This research report was produced by The REIT Forum with assistance from Big Dog Investments.
NLY-G (NLY.PG) is one of the preferred shares from Annaly Capital Management (NLY). It rallied above our target buy-under price of $21.11. Yet we have several other preferred shares in the buy-under range by 3% to 5%. We decided to pull the money out of NLY-G and will be looking for opportunities to redeploy it.
Index Card
The index card is shown below:

Source: The REIT Forum
Our closed position is shown below:

Source: The REIT Forum
We earned 5.99% in a little over three months. That's not bad at all. Plenty of the other preferred shares struggled during that time, which is part of the reason we have so many opportunities today.
Trade Confirmation
Our execution on the sale is shown below:

Source: Schwab
Our original purchase is shown below:

Source: Schwab
We are still long in the common shares, NLY-F (NLY.PF) and NLY-I (NLY.PI). Our largest preferred share is NLY-I, weighing in at about 8.18% of the total portfolio.
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