NEW YORK--(BUSINESS WIRE)--June 26, 2006--
Annaly Mortgage Management, Inc. (NYSE: NLY) is pleased
to announce the closing of Harp High Grade CDO I, Ltd. ("Harp"). Harp,
a $1 billion multi-tranche collateralized debt obligation, invests in
a high-grade portfolio of primarily residential mortgage-backed
securities. Annaly's wholly-owned subsidiary, FIDAC, is the collateral
manager for Harp.
Michael A.J. Farrell, Chairman, Chief Executive Officer and
President of Annaly, commented on the offering. "Harp represents a
step forward in our effort to grow FIDAC's assets under management,
diversify our product offerings and fee stream and expand our
management capabilities. We will continue to leverage our experience
and expertise as we seek new avenues of growth for FIDAC."
Matthew Lambiase, Executive Vice President of Structured Products,
commented on FIDAC's debut as a CDO manager. "Entering a new market is
always a challenge, but I believe that our track record of managing
through different environments helped make our first CDO offering a
success."
Annaly manages assets on behalf of institutional and individual
investors worldwide through Annaly and through the funds managed by
its wholly-owned registered investment advisor, FIDAC. At March 31,
2006, Annaly and FIDAC had gross assets under management of
approximately $34 billion. Annaly's principal business objective is to
generate net income for distribution to investors from the spread
between the interest income on its mortgage-backed securities and the
cost of borrowing to finance their acquisition and from dividends
Annaly receives from FIDAC, which earns investment advisory fee
income. Annaly, a Maryland corporation has elected to be taxed as a
real estate investment trust ("REIT").
This news release and our public documents to which we refer
contain or incorporate by reference certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements which are based on various assumptions (some of which are
beyond our control) may be identified by reference to a future period
or periods or by the use of forward-looking terminology, such as
"may," "will," "believe," "expect," "anticipate," "continue," or
similar terms or variations on those terms or the negative of those
terms. Actual results could differ materially from those set forth in
forward-looking statements due to a variety of factors, including, but
not limited to, changes in interest rates, changes in yield curve,
changes in prepayment rates, the availability of mortgage-backed
securities for purchase, the availability of financing and, if
available, the terms of any financing, FIDAC's clients removal of
assets FIDAC manages, FIDAC's regulatory requirements, and competition
in the investment management business. For a discussion of the risks
and uncertainties which could cause actual results to differ from
those contained in the forward-looking statements, see "Risk Factors"
in our Annual Report on Form 10-K for the fiscal year ended December
31, 2005. We do not undertake, and specifically disclaim any
obligation, to publicly release the result of any revisions which may
be made to any forward-looking statements to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date of
such statements.
This news release contains a reference to a securities offering.
The securities of such offering will not be and have not been
registered under the Securities Act of 1933 and may not be offered or
sold in the United Sates absent registration or an applicable
exemption from the registration requirements of the Securities Act of
1933.
Source: Annaly Mortgage Management, Inc.