Annaly Capital Management, Inc. (NYSE:NLY) Q1 2024 Earnings Conference Call April 25, 2024 9:00 AM ET

Company Participants

Sean Kensil - Director and Investor Relations
David Finkelstein - Chief Executive Officer and Chief Investment Officer
Serena Wolfe - Chief Financial Officer
Ken Adler - Head of Mortgage Servicing Rights and Head of Portfolio Analytics
Mike Fania - Deputy Chief Investment Officer and Head of Residential Credit

Conference Call Participants

Bose George - KBW
Doug Harter - UBS
Rick Shane - JPMorgan
Jason Weaver - Jones Trading
Trevor Cranston - JMP Securities
Eric Hagen - BTIG
Kenneth Lee - RBC Capital Markets
Meryl Ross - Compass Point

Operator

Good morning. And welcome to the First Quarter 2024 Annaly Capital Management Earnings Conference. [Operator Instructions] Please note that today’s event is being recorded.

I would now like to turn the conference over to Sean Kensil, Director, Investor Relations. Please go ahead, sir.

Sean Kensil

Good morning, and welcome to the First Quarter 2024 Earnings Call for Annaly Capital Management. Any forward-looking statements made during today's call are subject to certain risks and uncertainties, which are outlined in the Risk Factors section in our most recent annual and quarterly SEC filings. Actual events and results may differ materially from these forward-looking statements. We encourage you to read the disclaimer in our earnings release in addition to our quarterly and annual filings.

Additionally, the content of this conference call may contain time-sensitive information that is accurate only as of the date hereof. We do not undertake and specifically disclaim any obligation to update or revise this information. During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our earnings release. Content referenced in today's call can be found in our First Quarter 2024 Investor Presentation and First Quarter 2024 Supplemental Information, both found under the Presentations section of our website. Please also note this event is being recorded.

Participants on this morning's call include David Finkelstein, Chief Executive Officer and Chief Investment Officer; Serena Wolfe, Chief Financial Officer; Mike Fania, Deputy Chief Investment Officer and Head of Residential Credit; V.S. Srinivasan, Head of Agency; and Ken Adler, Head of Mortgage Servicing Rights.

And with that, I'll turn the call over to David.

David Finkelstein

Thank you, Sean. Good morning and thank you all for joining us on our first quarter earnings call. Today, I'll briefly review the macro and market environment along with our first quarter performance, then I'll provide an update on each of our three businesses and conclude with our outlook. Serena will then discuss her financials, after which we'll open the call up to Q&A. Now, beginning with the macro landscape. First quarter of 2024 was characterized by surprisingly resilient economic data, a healthy labor market, and an uptick in inflation. Consequently, interest rates sold off modestly on the quarter as the market priced out roughly half of the rate cuts that were expected at the beginning of the year. Now despite rising rates, risk assets performed well over the quarter as volatility declined and money flowed into both equity and fixed income markets.