· Event impact

Annaly Capital's 13% Dividend Yield Faces Pressure from Rising Oil Prices

Type: creditConfidence: 0.8Verified: keep
Dividend sustainability risk via narrowing net interest margin (NIM).

Transmission path

Dividend sustainability risk via narrowing net interest margin (NIM).

Market mechanism

Dividend sustainability risk via narrowing net interest margin (NIM).

Extended read

Annaly Capital (NLY) is a bellwether for the mortgage REIT sector. While it covered its Q1 dividend, the combination of sticky inflation (driven by oil) and a 'higher for longer' Fed stance threatens to compress its net interest margin, potentially forcing a dividend cut.

Exposed assets

NLY

Countries: US

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