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- by finance.yahoo.com
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Annaly's Floating-Rate Preferred Hits New High, But Is It Right For You?
Annaly Capital Management Inc. (NYSE: NLY) is one of the major mortgage real estate investment trusts (REITs), but it’s the company’s floating-rate preferred shares (NYSE: NLY-PF) that seem to be attracting investors’ attention. These bondlike instruments make regular payments based on a yield that had been fixed in value but now “floats” with interest rates. When the Federal Reserve takes rates higher, the preferred shares pay a greater yield as they adjust to the new environment. If you own an