ANNALY CAPITAL MANAGEMENT INCNLY
ANNALY CAPITAL MANAGEMENT INC Debt Disclosure
12. SECURED FINANCING | ||
The Company enters into reverse repurchase agreements to earn a yield on excess cash balances. To mitigate credit exposure, the Company monitors the market value of these securities and delivers or obtains additional collateral based on changes in market value of these securities. Generally, the Company receives or posts collateral with a fair value approximately equal to or greater than the value of the secured financing.
Reverse repurchase agreements and repurchase agreements with the same counterparty and the same maturity are presented net in the Consolidated Statements of Financial Condition when the terms of the agreements meet the criteria to permit netting. The Company reports cash flows on repurchase agreements as financing activities and cash flows on reverse repurchase agreements as investing activities in the Consolidated Statements of Cash Flows.
The Company had outstanding $81.9 billion and $65.7 billion of repurchase agreements with weighted average remaining maturities of 35 days and 32 days and weighted average rates of 4.02% and 4.76% at December 31, 2025 and 2024, respectively. In connection with its residential mortgage loans, the Company had select arrangements with counterparties to enter into repurchase agreements for $4.8 billion with remaining capacity of $2.5 billion at December 31, 2025.
At December 31, 2025 and 2024, the repurchase agreements had the following remaining maturities and collateral types:
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Agency Mortgage-Backed Securities | CRTs | Non-Agency Mortgage-Backed Securities | Residential Mortgage Loans | Commercial Mortgage-Backed Securities | Total Repurchase Agreements | ||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||
| 1 day | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
| 2 to 29 days | 43,487,076 | 96,162 | 1,371,672 | — | — | 44,954,910 | |||||||||||||||||||||||||||||
| 30 to 59 days | 31,834,906 | — | 376,364 | 519,921 | — | 32,731,191 | |||||||||||||||||||||||||||||
| 60 to 89 days | 3,969,641 | — | 655,204 | — | — | 4,624,845 | |||||||||||||||||||||||||||||
| 90 to 119 days | — | — | 18,763 | 165,305 | — | 184,068 | |||||||||||||||||||||||||||||
Over 119 days (1) | — | — | 275,341 | 1,532,712 | — | 1,808,053 | |||||||||||||||||||||||||||||
| Total | $ | 79,291,623 | $ | 96,162 | $ | 2,697,344 | $ | 2,217,938 | $ | — | $ | 84,303,067 | |||||||||||||||||||||||
| Amounts offset in accordance with netting arrangements | (2,437,344) | ||||||||||||||||||||||||||||||||||
| Net amounts of Repurchase agreements as presented in the Consolidated Statements of Financial Condition | $ | 81,865,723 | |||||||||||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Agency Mortgage-Backed Securities | CRTs | Non-Agency Mortgage-Backed Securities | Residential Mortgage Loans | Commercial Mortgage-Backed Securities | Total Repurchase Agreements | ||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||
| 1 day | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
| 2 to 29 days | 28,603,831 | 405,341 | 861,271 | — | 66,010 | 29,936,453 | |||||||||||||||||||||||||||||
| 30 to 59 days | 34,496,443 | 116,087 | 682,037 | 251,357 | — | 35,545,924 | |||||||||||||||||||||||||||||
| 60 to 89 days | 692,255 | 47,583 | 545,684 | — | — | 1,285,522 | |||||||||||||||||||||||||||||
| 90 to 119 days | 2,085 | — | 60,383 | — | — | 62,468 | |||||||||||||||||||||||||||||
Over 119 days (1) | — | — | 332,040 | 1,139,604 | — | 1,471,644 | |||||||||||||||||||||||||||||
| Total | $ | 63,794,614 | $ | 569,011 | $ | 2,481,415 | $ | 1,390,961 | $ | 66,010 | $ | 68,302,011 | |||||||||||||||||||||||
| Amounts offset in accordance with netting arrangements | (2,613,088) | ||||||||||||||||||||||||||||||||||
| Net amounts of Repurchase agreements as presented in the Consolidated Statements of Financial Condition | $ | 65,688,923 | |||||||||||||||||||||||||||||||||
(1) Less than 1% of the total repurchase agreements had a remaining maturity over 1 year at December 31, 2025 and December 31, 2024. | |||||||||||||||||||||||||||||||||||
The following table summarizes the gross amounts of reverse repurchase agreements and repurchase agreements, amounts offset in accordance with netting arrangements and net amounts of repurchase agreements and reverse repurchase agreements as presented in the Consolidated Statements of Financial Condition at December 31, 2025 and 2024. Refer to the “Derivative Instruments” Note for information related to the effect of netting arrangements on the Company’s derivative instruments.
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Reverse Repurchase Agreements | Repurchase Agreements | Reverse Repurchase Agreements | Repurchase Agreements | ||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Gross amounts | $ | 2,471,733 | $ | 84,303,067 | $ | 2,613,088 | $ | 68,302,011 | |||||||||||||||
| Amounts offset | (2,437,344) | (2,437,344) | (2,613,088) | (2,613,088) | |||||||||||||||||||
| Netted amounts | $ | 34,389 | $ | 81,865,723 | $ | — | $ | 65,688,923 | |||||||||||||||
The fair value of collateral received in connection with reverse repurchase agreements as of December 31, 2025 was $2.5 billion, of which the Company sold $2.4 billion. The fair value of collateral received in connection with reverse repurchase agreements as of December 31, 2024 was $2.6 billion, of which the Company sold $2.5 billion. The amount of collateral sold is reported at fair value in the Company’s Consolidated Statements of Financial Condition as U.S. Treasury securities sold, not yet purchased.
Other Secured Financing - As of December 31, 2025, the Company had $2.2 billion in total committed credit facilities to finance a portion of its MSR portfolio. Outstanding borrowings under these facilities as of December 31, 2025 totaled $1.1 billion with maturities ranging between to two years. As of December 31, 2024, the Company had $1.6 billion in total committed credit facilities to finance a portion of its MSR portfolio. Outstanding borrowings under these facilities as of December 31, 2024 totaled $750.0 million with maturities ranging between one month to two years. The weighted average interest rate of the borrowings was 6.44% and 7.21% as of December 31, 2025 and 2024, respectively. Borrowings are reported in Other secured financing in the Company’s Consolidated Statements of Financial Condition.
Investments pledged as collateral under secured financing arrangements and interest rate swaps, excluding residential mortgage loans of consolidated VIEs, had an estimated fair value and accrued interest of $89.0 billion and $404.1 million, respectively, at December 31, 2025 and $71.8 billion and $332.7 million, respectively, at December 31, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.