New Annaly Preferred Shares Trade Weakly

Annaly Capital (NYSE:NLY) sold a 6.50% fixed to floating rate preferred yesterday which is trading weakly today in the area of $24.65/share.

It would appear that the timing of the issue is the culprit as it was sold just as the 10 year treasury ticked higher by 10-12 basis points.

Typically perpetual preferreds would trade weakly in a market of rising interest rates such as we have seen in the last 2 days.

Further info is here.

We would expect this issue to have very limited upside in the weeks and months ahead if interest rates remain at current levels.