What is the Credit Quality of Annaly’s MBS?
• To date, all of the MBS owned by the company have been guaranteed by an agency of the U.S. government (Ginnie Mae) or by U.S. government sponsored enterprises (Fannie Mae and Freddie Mac). Mortgage-backed securities issued by these three are called “Agency” mortgage-backed securities. Owners of agency bonds are guaranteed the timely payment of principal and interest. This gives them the equivalent of an AAA credit rating, the highest rating available.
