Nly

CAN ANYONE TELL ME WHY THIS STOCK HAS SUCH
A HUUUUUUUGE DEBT TO EQUITY RATIO.....
PRETTY SCARY

 

Leverage.

 

1. Buy 5x equity value of 30 year mortgage yielding 5% and repo them out at 50bps.
2. ???
3. Profit

 

It's a mortgage REIT and compared to competitors it's probably somewhere in the middle. If you think NLY is high, you should check out IMH.