This “Alternative Bank” Now Yields 11.8%

If you want to earn higher yields from your portfolio, then you will want to hear about this stock. That’s because the quiet section of the market that this stock is in pays out safe double-digit yields. Wall Street insiders have long prized this industry for its reliable, steady income. Yet most people have never heard of it. This little-known industry receives minimal coverage in the business press. And right now, we have a rare opportunity to scoop up shares at a bargain price.

Today we have an exciting opportunity at “alternative bank” Annaly Capital Management Inc (NYSE:NLY). My colleague Jing Pan coined the phrase “alternative bank” to describe a certain group of companies that operate like banks. They borrow money at a low interest rate and invest those funds for higher returns elsewhere. The difference? Alternative banks don’t have any branches, bank tellers, or ATMs,. As a result, almost all of their profits go straight to their bottom line. Annaly Capital Management Inc’s main business is investing in mortgage bonds. Analysts consider these loans exceptionally safe, given that the mortgage is the last payment that people skip during a downturn. And because these loans are insured by the U.S. government, “Uncle Sam” will reimburse investors for any losses.

Source: Income Investors

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