September 6, 1999
Annaly Mortgage Management Inc. filed with the Securities and Exchange Commission last week to sell as much as $200 million of common and preferred stock. The New York-based real estate investment trust will use the proceeds to purchase mortgage-backed securities, according to a shelf registration with the SEC. Annaly then will borrow against the newly purchased mortgage-backed securities and use the proceeds to acquire even more MBS. The company owns and manages a portfolio of MBS. It seeks to generate income for shareholders through the spread between the income earned on the MBS and its borrowing costs to acquire the portfolio. The shelf filing lets Annaly raise money by selling any combination of preferred and common stock. The company registers the securities in advance and sells them when financing needs arise or market conditions are favorable.
Dynex Capital Inc. sold $341.25 million of bonds backed by loans on manufactured housing. The sale by Glen Allen, Virginia-based Dynex was managed by Lehman Brothers Inc. and Greenwich Capital Markets.