As a result we ran numerous scenarios in excess of 20, to determine the appropriate amount of Cecil reserves to the quarter and ultimately booked reserves that were considerably more conservative than our base case scenario. For its 2021 fiscal year, ANNALY CAPITAL MANAGEMENT, listed the following CEO pay ratio data on its annual proxy statement to the SEC. Total Cash Compensation information is comprised of yearly Base Pay and Bonuses. Mr. Haylon received a B.A. The Agency group invests in agency mortgage-backed securities. Yes the TBA role provided about $97.5 million post NIM for the quarter. The stock was acquired at an average cost of $5.56 per share, with a total value of $1,112,000.00. Annaly Capital Management Inc executives and other stock owners filed with the SEC include: Track performance, allocation, dividends, and risks, Annotate, download XLSX & look up similar tables, Filter, compare, and track coins & tokens, insiders at Annaly Capital Management Inc, Stocks and cryptocurrency portfolio tracker. In the last twelve months, Annaly Capital Management insiders bought shares 1 times. Athletes' ambitions don't end when they leave the field of play. Until December 2017, Ms. Denahan served as Chairman of the Board of Annaly (from November 2012) and Executive Chairman of Annaly (from September 2015). Shifting to middle-market lending, activity has also picked up as of late as spreads have tightened and sponsors have refinanced transactions that have exhibited improving underlying leverage profiles. This report is not for commercial use. Numbers reported do not include change in pension value and non-qualified deferred compensation earnings. Our efficiency metrics changed modestly relative to Q1 being 2.1% of equity for the second quarter in comparison to 1.98%. Please disable your ad-blocker and refresh. The estimated net worth of David L. Finkelstein is at least $36.42 million as of June 17th, 2022. Mr. Reeves has also served as General Counsel & Secretary of The Duchossois Group, a family-owned holding company comprised of diversified operating companies and DCM, since 2007 and its Chief Administrative Officer since 2017. Will His AI Plans Be Any Different? And to repo financing remains ample. As COO, Steve will expand on the work he's been doing as Head of Business Operations and work closely with the executive team to help oversee Annaly's overall operations and risk management functions. in Economics and Political Science from the University of Pennsylvania and a J.D. Mr. Hamilton has served as a Director of Larimar Therapeutics, Inc., a clinical-stage biotechnology company focused on developing treatments for rare complex diseases, since May 2020 when Chondrial Therapeutics, Inc. merged with Zafgen, Inc. and the combined company began operating as Larimar. Thanks Brendon for your help and we hope everybody stay safe. Biography of David Finkelstein. My No. David L. Finkelstein is CEO and Chief Investment Officer of Annaly. The decline in portfolio size is driven by approximately $53 million in loan payoff as well as securities sales. The reason why they appreciate is because there worth it. Okay. So balance sheet leverage is incredibly inexpensive right now and abundantly available because of the reserves in the system and in the agency space it's more favorable than structural leverage through derivatives. He received an undergraduate degree from the University of Washington and an MBA from The University of Chicago Booth School of Business. And with that I'll turn the call over to David. Dr. Hannan has over 30 years of industry experience and held numerous leadership roles during her distinguished career with KPMG. Reinvestment is a key criteria here. These and our other ESG milestones have helped create durable value for all of our stakeholders., Corporate Responsibility Report Highlights. Signaling from a fed on continued low rates combined with considerable injection of additional reserves in the financial system through repo operation and asset purchases have led to very stable funding conditions with repo markets experiencing no signs of stress through the quarter even on pivotal month end and quarter end days 1.8. Ms. Denahan was Annalys Chief Operating Officer from January 2006 to October 2012 and Chief Investment Officer from 2000 to November 2012. On average, Annaly Capital Management Inc executives and independent directors trade stock every 35 days with the average trade being worth of $908,853. Mr. Finkelstein earned a salary of $1,000,000.00, a bonus of $6,325,000.00, stock awards of $1,800,001.00, and other compensation of $13,763.00. David Finkelstein, Annaly's Chief Executive Officer and Chief Investment Officer, commented: "Since 1997, Annaly has become the largest mortgage REIT in the world and delivered $24 billion in . Good morning and welcome to the second quarter 2020 earnings call for Annaly Capital Management. in Finance and Economics from Kean University/University of Arizona, a M.B.A in Finance from Rutgers University and attended the Executive Education Program of the Colgate W. Darden Graduate School of Business Administration at the University of Virginia. Ms. Williams has served as Chief Human Resources Officer for NBCUniversal, a multinational media . As David mentioned earlier, the stabilizing actions of the Fed coupled with our active portfolio management resulted in improved fed value of our agency assets and significant improvement in financial performance. They purchased a total of 200,000 shares worth more than $1,112,000.00. Dr. Hannan is a former Global Lead Partner, National Managing Partner and Vice Chairman of KPMG, LLP, the U.S. member firm of the global audit, tax and advisory services firm KPMG International. Mr. Finkelstein has 25 years of experience in fixed income investments. The largest trade he's ever made was buying 200,000 units of Annaly Capital Management Inc stock on 17 June 2022 worth over $1,112,000. They provide a much better competitive profile with lower prepayment characteristics than the market, but generally speaking pool pricing can be variable and so that's probably the risk in any agency. Ms. Bovich is a member of The Economic Club of New York, and an emeritus trustee of Connecticut College and a Member of the Investment Sub-Committee for its endowment. On the financing side, our weighted average cost of borrowing decreased by roughly 60 basis points to 2.7% driven largely by a reduction in LIBOR given the fed cuts. Net Worth The estimated Net Worth of David L Finkelstein is at least Annaly Capital Management Inc . Any forward-looking statements made during today's call are subject to certain risks and uncertainties including with respect to COVID-19 impacts, which are outlined in the risk factors section in our most recent annual and quarterly SEC filings. Thanks for joining us today and we'll talk to you soon. Okay. Ilker . Thorough reviews have been conducted to assure this data accurately reflects disclosures. Eric A. Reeves was elected to serve as an independent director of Annaly in March 2021. Annaly Capital Management, Inc. (NYSE: NLY) (the "Company" or "Annaly") announced today the publication of its second corporate responsibility report for the year 2020, titled Leading with Purpose.The report demonstrates Annaly's continued focus on environmental, social and governance ("ESG") endeavors and provides an update on Annaly's ESG goals and commitments. Total Equity aggregates grant date fair value of stock and option awards and long term incentives granted during the fiscal year. Good morning and nice quarter guys. You may now disconnect. Annaly Capital Management's insider roster includes David Finkelstein (CEO), and Thomas Hamilton (Director). . Non-Equity Incentive Plan Compensation: $0: Change in Pension Value and Deferred Compensation Earnings: $0: All Other Compensation: $13,763: Total: $9,138,764: Annaly Capital Management, Inc. disclosed its CEO pay was. David L. Finkelstein C.F.A. The improvement in singles that the market currently believes that the majority of forbearance cases, which have stabilized over the past couple of months will ultimately be resolved. Corporate Responsibility CommitteeRisk Committee. We have entered a more normalized environment with fed action serving as a key driver and spreads have retraced much the widening experienced in March we do remain positive on the sector given ample funding availability at low rates due to rate volatility and a complete reversal of an inferior technical backdrop that characterizes sector at the outset of this year. As the CEO of Annaly Capital Management, Inc., Mr. Finkelstein earned a total compensation package of $9,138,764.00 in 2021. Prior to his roles at Con Forms, Mr. Hamilton spent 24 years in a number of leadership positions in the financial industry. Wellington J. Denahan co-founded Annaly in 1996 and has served as a Director since that time. No, it is not reflected in the funding cost. In credit as we've said, we like our portfolio. Mr. Finkelstein was appointed as Chief Executive Officer and elected to serve on the Board of Directors in March 2020. Overall, we maintained a more constructive view of the operating environment and our ability to deliver compelling returns as each of our businesses respected sectors begins to emerge from the initial volatility and destruction caused by the pandemic. And now with that, I'll hand it over to Serena to discuss the financials. Mr. Finkelstein received a B.A. Mr. Finkelstein is a member of the Treasury Market Practices Group sponsored by the Federal Reserve Bank of New York as well as a member of the Financial Sector Advisory Council of the Federal Reserve Bank of Dallas. I am pleased to share all that we have accomplished in 2021, including enhancing the Companys executive compensation program, expanding our parental leave and fertility benefits and providing additional climate-related disclosures. Beyond just prepays is what happens to pool pricing over the next quarter or two. Glenn has been an invaluable part of our leadership team and we thank him for his numerous contributions over the years and look forward to his continuing service on our board. Just on the TBAs again just every mortgage rate, it feels like accounts for $I specialness a little differently in their NIM. ANNALY CAPITAL MANAGEMENT annual reports of executive compensation and pay are most commonly found in the Def 14a documents. The proxy must be sent to every shareholder in advance of the company's annual shareholders meeting. And prepay is obviously being the uncertainty and the risk which we I don't think you heard a lot about I'm sure this quarter and I think we managed prepay risk as well as anybody. GAAP net income improved this quarter as a result of higher GAAP net interest income of $399 million, primarily due to lower interest expense from reduced repo rates and balances and we also experienced lower losses on our core portfolio of $92 million. The report demonstrates Annalys continued focus on setting and measuring progress on environmental, social and governance (ESG) goals, as well as its commitment to providing increased disclosure and transparency. Prior to the merger, Mr. Hamilton had served as Chairman of the Board of Chondrial Therapeutics, Inc., a biotechnology company he started to cure a rare neurodegenerative disease called Friedreichs Ataxia, since 2013. So we set the dividend at $0.22 because we believe that to be the sustainable level for the foreseeable future as long as we had a lens into the horizon. Our next question comes from Kenneth Lee with RBC Capital Markets. While our allocation agency may increase modestly, we do continue to evaluate opportunities to deploy capital across our three credit businesses and we are beginning to develop the better lends into how each credit sector is evolving and we expect to shift to a more offensive posture in the coming months as we gain more clarity on the economic and real estate landscape. david finkelstein annaly compensationgetting married in tanzania. Out treasury function is the best in the business and their expertise and exemplary market timing was a key component that helped us weather the market dislocation last quarter and our ability to deliver strong core earnings this quarter. But when we think about reinvestment into for example, pools where we see the levered returns on agency MBS is in the context of 11% to 12% maybe a little bit higher and so as we look at the dividend right now at 10.5% yield on book value the reinvestment of agency runoff is perfectly consistent with that longer-term more steady-state level assuming rates in this context, but keep in mind we do have this near-term tailwind of specialness and some other factors that are beneficial to the portfolio where were out-earning the dividend this quarter. Prior to joining Annaly in December 2019, Ms. Wolfe had served as a Partner at Ernst & Young LLP (E&Y) since 2011. Mr. Green was Deputy General Counsel of Annaly from 2009 until March 2017. Non-agency securities across legacy CRT jumbo 2.0 and non-QN have seen substantial recovery. As the Pres and CEO & Director of Annaly Capital Management Inc, the total compensation of Mr A at Annaly Capital Management Inc is $8,203,772. Mr. Finkelstein was elected to serve as a director of Annaly in March 2020. Also, proxies must disclose specific detailed information regarding the pay practices for certain executives. Chief Executive OfficerChief Investment Officer. So while implied volatility is very low and that's by design on part of the part of the fed and to the extent it continues to decline, it will be a more attractive hedge to our agency portfolio and I would say that in current levels, you should expect it to be a critical component of the portfolio going forward. Annaly actively integrates ESG considerations into its overall strategy through the following key areas: corporate governance, human capital, responsible investments and the environment. Mr. Schaefer served as a board member and chair of the audit committee of USI Holdings Corporation from 2008 through 2012. The company was founded by Michael A. J. Farrell and Wellington Jamie Denahan-Norris on February 18, 1997 and is headquartered in New York, NY. This underscores our belief that the stock is undervalued relative to our book value and affirms our support of the value of our stock through the various capital allocation tools we have on hand. I wanted to talk a little bit about dividend policy. NEW YORK -- (BUSINESS WIRE)-- Annaly Capital Management, Inc. (NYSE: NLY) ("Annaly" or the "Company") announced today the Board of Directors (the "Board") has elected David L. Finkelstein as its Chief Executive Officer and a . Additionally, the content of this conference call may contain time-sensitive information that is accurate only as of the date hereof. Just had a curiosity what are some things that you are concerned about or really looking closely at, you kind of in the end and immediate term. PHIL 21505/31505 Wonder, Magic, and Skepticism. We maintained the view that the agency sector represents the most attractive investment opportunity currently while also providing strong liquidity. Consistent with that strategy, since the beginning of the second quarter, we added $1.125 billion of capacity across two new credit facilities for our residential credit group, the permanent nonrecourse financing. Total reserves now comprise 5.32% of our acreage in MML loan portfolios as of June 30, 2020. Annaly Capital Management, Inc. (NYSE:NYSE:NLY) Q2 2020 Earnings Conference Call July 30, 2020, 09:00 AM ET Company Participants Purvi Kamdar - Head, IR David Finkelstein - CEO & Chief. David Finkelstein interviewed on WBEZ's "Odyssey" Recent Courses PHIL 50212 Late Wittgenstein: The Absolute Basics for The Confused, Skeptical, and Ignorant (IV) David Finkelstein. Please go ahead. NEW YORK--(BUSINESS WIRE)-- in Finance from Florida State University. For example, government mandates at all levels have created an even greater dependency on technology while also driving demand and behavior in ways that has made once boring annuity business into growth sectors. 2015. David L. Finkelstein is Chief Executive Officer and Chief Investment Officer of Annaly. was elected to serve as an independent director of Annaly in February 2019. Insiders at Annaly Capital Management own 0.3% of the company. You may also find the annual proxy statement by going directly to the company's website. Securitization market started to show signs of life in mid-May and we issued nearly $500 million of expanded prime securities earlier this month, subsequent to quarter end. So we don't expect a meaningful increase in agency, but over the near term you can see a small uptick. Audit CommitteeManagement Development and Compensation CommitteeRisk Committee. Ms. Williams has over 17 years of compensation and governance experience. Now with respect to our hedges, we added to our swap portfolio primarily in the front end and short-term swaps with pay rates close to 0% providing attractive hedge to our financing. David's mailing address filed with the SEC is C/O ANNALY CAPITAL MANAGEMENT, INC., 1211 AVENUE OF THE AMERICAS, NEW YORK, NY, 10036. Ms. Bovich has a B.A. Shifting to residential credit, the sector saw significantly more activity as market dynamics began to improve following the crisis. See David L Finkelstein's compensation, career history, education, & memberships. Prior to that, Mr. Finkelstein held senior Agency MBS trading positions at Salomon Smith Barney, Citigroup Inc. and Barclays PLC. Alex Yankus in International and Comparative Law from Cornell Law School. These funds represent a broad scope of investment strategies including equities, taxable fixed income, municipal bonds, and cash management. That has largely taken delivery of the most negatively convex MBS, which has resulted in a shift to the TBA deliverable across production coupons to more newly originated pools and as a result, nominal carry on production coupons TBAs has improved dramatically thereby adding to returns for TBA holders. Mr. Finkelstein owns 1,669,013 shares of Annaly Capital Management stock worth more than $33,931,034 as of March 4th. We add the incremental dollar role income to core income and then the outcome. Interim CEO Glenn Votek to Assume Role of Senior Advisor and Remain on the Board of Directors. On a more positive note, multifamily remained strong throughout the quarter. In fact some of our industry concentrations have maturely benefited from the current environment. As a reminder, the impending model introduced by the new Cecil is based on expected losses rather than incurred losses, which was the previous management for reserve historically. While at KPMG, Dr. Hannan also founded the KPMG Womens Advisory Board. Given this dynamic, we increased our TBA position in the quarter and gravitated further down in coupon. 1-888-8Annaly Other Compensation covers all compensation-like awards that don't fit in any of these other standard categories. None of Annaly's achievements would have been possible without . The most recent insider tranaction occured on June, 17th when CEO David L Finkelstein bought 200,000 shares worth more than $1,112,000.00. There are 11 older and 9 younger executives at Annaly Capital Management Inc. From 1997 to 1998, Mr. Schaefer was Managing Director and Head of Strategic Planning and Capital Management at Morgan Stanley. This Supreme Court Case Could Redefine Crime, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, More Iranian Schoolgirls Sickened in Suspected Poisoning Wave, No Major Offer Expected on Childcare in UK Budget, Oil Investors Get $128 Billion Handout as Doubts Grow About Fossil Fuels, Climate Change Is Launching a MutantSeed Space Race, This Former Factory Is Now New Taipeis Edgiest Project, What Do You Want to See in a Covid Memorial? Portfolio construct has been protected against broader sectors that have witnessed demand destruction and we maintain meaningful exposure where pockets of spend remainder resilient. Data Year: 2021. There are no executives at Annaly Capital Management Inc getting paid more. Nov 07, 2016. in Economics from Connecticut College and an M.B.A. in Finance from New York University. . David L. Finkelstein is Chief Executive Officer and Chief Investment Officer of Annaly. Thank you for attending today's presentation. David L. Finkelstein C.F.A. This makes analysis regarding Cecil reserves particularly challenging. Mr. Reeves received his B.A. And with that, I'll turn it over to operator for questions. So broadly speaking in agency it's probably pool pricing and in credit there could be unforeseen events given the economy that could disrupt individual assets. Mr. Campbell received a B.B.A. Prior to joining Annaly in 2013, Mr. Finkelstein served for four years as an Officer in the Markets Group of the Federal Reserve Bank of New York where he was the primary strategist and policy advisor for the MBS Purchase Program. Most recently he exercised 31,721 units of NLY stock worth 194,767$ on 30 June 2022. . The chart on this page features a breakdown of the total annual pay for David L. Finkelstein, Chief Executive Officer, President and Director at ANNALY CAPITAL MANAGEMENT as reported in their proxy statements. Prior to joining Annaly in 2013 . Today I'd like to highlight a number of current corporate initiatives, provide an update on the market and discuss portfolio activity across our core business during the quarter and finally provide our outlook for the balance of the year and then I'll hand it off to Serena to discuss the financials. There are no executives at Annaly Capital Management Inc getting paid more. . You may also find the annual proxy statement by going directly to the company's website. Ms. Wolfe has over 20 years of experience in accounting, of which 13 years were focused solely in real estate practice. A proxy statement (or "proxy") is a form that every publicly traded U.S. company is required to file with the U.S. Securities & Exchange Commission (SEC) within 120 days after the end of its fiscal year. You may retrieve the full proxy statement by going to the Securities and Exchange Commission (SEC) website at www.sec.gov and entering the company's name and then looking in the first column for an entry of "Form DEF 14A" (or any similar code). Learn More on Annaly Capital Management's active insiders. Annaly's principal business objective is to generate net income for distribution to its stockholders and to optimize its returns through prudent management of its diversified investment strategies. from Bowdoin College and a M.B.A. from the University of Connecticut. David L. Finkelstein is President, Chief Executive Officer & Director at Annaly Capital Management, Inc. Does that answer your question? Look, first of all I'll talk about the footprint and agency derivatives for example and what we're talking about here Eric is the difference between balance sheet leverage and instructional leverage. Most recently he exercised 7,989 units of NLY stock worth $50,490 on 29 January 2022. . So that could change but derivatives without achieving a little bit as well as MSR for it to be more attractive. Now with respect to options, we did reinvest a lot of the runoff in our swap portfolio back in out of money options and I'll tell you going forward that will be a function of the level of implied volatility. David L. Finkelstein is Chief Executive Officer and Chief Investment Officer of Annaly. In Blacklisting Inspur, US Targets Partner Used by Intel and IBM, Twitter Revenue, Earnings Fell About 40% in December, WSJ Says, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, Bolsonaro Says Mission Isnt Over as US Conservatives Fete Him, Biden Closes In on Order to Restrict US Investment in China Tech, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, Tom Sizemore, 'Saving Private Ryan' Actor, Dies at 61. There been some signs that the worst of the economic distress may be behind us although the recent surge in cases in some areas of the US demonstrates the fragile nature of the recovery. But nonetheless it's a more balanced hedge profile now with a slight steepening bias and we took advantage of near zero rates at the front end of the curve, which we think has very limited downside potential in terms of those hedges losing money because it's not our view that we end up in a negative rate scenarios negative policy rate scenario that is. Financial Highlights. Everyone at Annaly contributes to our success and we're proud of the results that we've reported for the second quarter and expect to continue providing best in class results for our shareholders. This concludes our question-and-answer session. As we look at the buyback policy, it's not a point in time estimated, everything changes on a daily basis because asset prices changes in the relative attractiveness of buying back stock versus putting that capital to work in the portfolio changes and if you just think about the immediate accretion of the stock buyback in terms of book value versus the longer-term earnings of the portfolio, there is a trade-off there certainly and we generated 25% accretion from the buyback thus far. We have previously discussed our methodology and are thorough and thoughtful approach to Cecil reserves.
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