Annaly 2Q15 Earnings Call Notes

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Optimistic that the long overdue change in policy will come

“We remain optimistic that the long overdue change in the monetary policy landscape is in the offering. We are encouraged by the strength in the labor markets, recent stability in inflation indicators and the generally stronger economic growth, that in our opinion, solidly supports an adjustment of the zero balance by the Federal Reserve later this year.”

Fixed income markets have experienced significant volatility

“As we have all witnessed, fixed income markets have exhibited significant volatility over the past quarter, as interest rates increased and spreads widened across a wide spectrum of fixed income assets.”

Do expect a hike this year but slow pace of liftoff

“we do expect the first rate hike to occur later this year, but as we have stated previously, we anticipate that the pace of Fed tightening will be very gradual given the slow growth of the inflation backdrop.”

We are less concerned about a significant rate sell of than we were earlier this year

“we are less concerned about significant rate sell-off now relative to earlier this year when the 10-year note was yielding inside 2%.”

Hired a team from GE Capital

“In addition, as we previously announced earlier in the second quarter, we added a significant amount of talent to the commercial team to help continue to grow the business. Specifically, we hired Jeff Thompson as a leader in our group and added five members of his investment team from GE Capital.””

[Analyst comment] about change in CEO

“Kevin, if you don’t allow Wellington to have some influence in your opening comments going forward, our lives will be a little bit less interesting going forward.”