NLY

I didn't listen. Is the conference call juicy? Worth listening to?

I was always told NLY was one of the safer mreit bets? What's the problem?
 
Virg-

Juicy like a ripe watermelon.



No joke, this is how the CEO opened the call:
http://www.annaly.com/mikesocQ207.pdf
 
NLY is a safe bet but they have great insight on what is actually going on in mortgages.
 
Wow... scarey stuff. He's trying to scare all the other mreit holders into buying some NLY. They probably have some free cash nowadays.
 
ryguy904 Wrote:
-------------------------------------------------------
> Virg-
>
> Juicy like a ripe watermelon.
>
>
>
> No joke, this is how the CEO opened the call:
> http://www.annaly.com/mikesocQ207.pdf

I thought this was silly. Yes, it's a nice graphic which is why Tufte says it's the best graphic ever made for visualizing data in the book that made it famous. What the heck does Napolean have to do with capital in credit markets? Napolean's invasion of Russia was a disaster; sub-prime mortgages are a disaster and then the analogy breaks down. This guy somehow wanted to sound erudite and he comes off sounding half-educated.

BTW - There's something misleading about that graphic on Napolean. An important component of the decimation of Napolean's troops was desertion (this sucks, I'm outta here..). As many as a third of the "decimated" troops eventually found their way back to France or their homes in Italy, Poland, or wherever else they were conscripted from.

BBTW - If you wanted to survive this fiasco, the worst choice was to hang along with Napolean if you couldn't keep up. Napolean dropped stragglers off the back all the time and they were treated exceptionally brutally by Cossacks.
 
As bad as it has been, I still have an uneasy feeling that these mortgage companies/investment REITS are still sugar coating..

probably by mid month everything will come to light.
 
Napolean invasion chart has 2 similarities beyond just being disasters:

(1) the "turnback" phase, when capital( or the invaders ) suddenly realizes the direction they've been going is wrong, they turn back and still keep losing capital all the way in retreat. Think of the retreat as the long, painful unwinding process.

(2) the other obvious similarity is the fact that it happens over and over again... hitler did the same thing. Capital markets do the same thing.
 
Pretty weak.

These military analogies in finance suck. There's just nothing the same about capital funding sub-prime mortgages and European empire building except stuff like they can both go wrong and have similar stages in going wrong. I think subprime mortages are just like Internet dating. There's the initial attraction, the hook, the meeting, the spending money looking for a return, the ugly realization that this date is going nowhere, the unwinding process, etc.. Maybe he should have brought bad date stories from match.com instead. The analogy is better.
 
So spell out the bongwater/sub-prime mortage thing for me. I'm having a little trouble seeing it. (On the other hand, I'm 25 years from having anything to do with bongwater).
 
You must log in or register to reply here.
Back
Top