Annaly Capital Management Announces Monthly
Commentary for May
May 10, 2010 05:56 PM Eastern Daylight Time
NEW YORK--(EON: Enhanced Online News)--Annaly Capital Management, Inc. (NYSE: NLY) released its
monthly commentary for May. Through its monthly commentary and blog, Annaly Salvos, Annaly expresses its
thoughts and opinions on issues and events in the financial markets. Please visit our re-designed website,
www.annaly.com, to check out all of the new features and to view the complete commentary with charts and graphs.
Headlines about Greek debt worries dominated most of the last month. The cost of insuring Greek sovereign debt
started the month at around 400 basis points (bps) and hit 1,300 bps before closing the month out around 1,000
bps. Worries about contagion to the rest of the PIIGS (Portugal, Ireland, Italy, Greece and Spain) and the wider
effects of bank exposure to these debt-burdened sovereigns brought volatility back to the markets as the month
wore on. How this crisis is handled will have a wide range of consequences—for the Euro, for funding markets and
for the global economy. At the time of this writing, the Euro has broken below 1.30 against the US dollar, Greece is
rioting, the EU and the IMF have joined forces for an unprecedented bailout of Greece, and the Fed and other
central banks have reopened US dollar swap facilities to ease tensions in European short-term funding markets. To
paraphrase from an earlier time, this is not contained to Greece.
Back on this side of the Atlantic, incoming data are confirming a slow, grinding recovery for the US economy.
Industrial production and capacity utilization both improved, though the gains are moderating and the levels remain
far below pre-recession norms. The job market seems to have mostly leveled out, which compares well to the
experience of the last two years of steep declines. Initial unemployment claims have spent much of the year in the
mid-400 thousand range—better than the worst levels of early 2009