Annaly Capital Management, Inc. (Annaly) is a real estate investment trust (REIT) that owns and manages a portfolio of mortgage-backed securities. It also owns, manages, and finances a portfolio of investment securities, including mortgage pass-through certificates, collateralized mortgage obligations, agency callable debentures, and other securities representing interests in or obligations backed by pools of mortgage loans. The Company is focused in generating net income for distribution to the stockholders from the spread between the interest income on the investment securities and the cost of borrowings to finance the acquisition of investment securities. Fixed Income Discount Advisory Company (FIDAC) and Merganser Capital Management, Inc. (Merganser) are the wholly owned taxable REIT subsidiary of the Company. Merganser was acquired by the Company on October 31, 2008. FIDAC and Merganser manage a number of investment vehicles and separate accounts for which they earn fee income.