High-Dividend Mortgage REITs Lose $700 Million in Market Value in One Day

Annaly Capital Management (NYSE: NLY) fell 5.2% on March 20, closing at $20.79 on the New York Stock Exchange. Its market capitalization dropped by roughly $700 million—almost KRW 1 trillion—in a single session, leaving it at about $15 billion (around KRW 20 trillion). Trading volume surged to approximately 11.2 million shares, well above the one-year daily average of 7.7 million, signaling weakened investor sentiment.

In its fourth-quarter 2025 report released on January 28, the company posted distributable earnings per share of $0.74, slightly above market expectations. For the full year 2025, Annaly achieved a quarterly yield of 8.6% and an annual economic yield in the low 20% range. Cited as a potential beneficiary of a Federal Reserve rate-cut cycle, its book value has risen to $20.21. However, mixed outlooks on interest rates and dividend sustainability have heightened its stock’s volatility.

Annaly is one of the largest mortgage REITs in the United States, using leverage on U.S. government-guaranteed mortgage-backed securities and related home loans to earn interest-rate spreads that are paid out as dividends. By nature, its business is highly sensitive to interest-rate levels and mortgage bond spreads—Fed policy shifts and bond market swings directly impact its asset values, dividend capacity, and share price.