Thanks to a steep yield curve, Annaly Capital Management, New York, a mortgage investment REIT, earned $729 million in the fourth quarter, a 155% improvement in profits from the prior period. In the same quarter a year earlier Annaly lost $506 million. The publicly traded company, which holds $64.8 billion in MBS, told stock analysts that it believes the yield curve will remain steep. According to a research note from Sandler O'Neill, management at Annaly is not "convinced that a sharp decline in MBS prices is on the horizon, although they would welcome a pullback in prices since it would enable Annaly to purchase new MBS at wider spreads."
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