Question · Q3 2025
Eric J. Hagen asked about the possibility of Annaly returning to a duration gap strategy and how the company weighs risk-taking, as well as the impact of GSEs potentially becoming more active buyers of Agency MBS.
Answer
David Finkelstein, CEO and Co-Chief Investment Officer, explained that Annaly currently runs a near-zero duration gap due to market uncertainty but may take a longer duration approach if conditions change. He also commented that while GSE activity has been limited, market expectations exist, and their presence could stabilize spreads if well-regulated.