Run From Annaly Mortgage Management

Annaly Mortgage Management (NLY), a mortgage real estate investment trust (REIT), is on the downside after it began cutting its dividend. To make money NLY borrows at short-term rates, lends at long-term rates and pockets the spread. But as the yield curve flattened (short-term rates moved up faster than long-term rates), NLY's income shrank and it was forced to slash its dividend so the stock price collapsed.

Do not buy this stock.