Stock market: We’re entering a period of ‘negative operating leverage,’ strategist says

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Here’s Why Things Might Be Looking Up For Annaly Capital

First, they suffered through margin calls, then a refinancing wave, and now a hawkish Federal Reserve. Annaly invests in agency mortgage-backed securities (MBS), which are guaranteed by the government. In other words, if we hit a recession and borrowers fail to make their mortgage payments, Annaly still gets its principal and interest.