Is Annaly Capital Management a Buy?
The COVID-19 crisis threw the mortgage real estate investment trust (REIT) sector for a loop earlier in the year. The sector was crushed by massive volatility in the stock and bond markets, which caused liquidity to dry up in the mortgage-backed securities markets. Even mortgage REITs that concentrated in mortgages guaranteed by the U.S. government were not immune to a drop in stock price.
Since then, stocks that were once largely reserved for income investors became a favorite of the Robinhood crowd of day-traders for a time, creating some volatility in the sector. As of now, it appears that the financial markets aspect of the COVID-19 crisis seems to be over.
Does that make Annaly Capital Management (NYSE: NLY) a buy?
Source Fool.com
