Annaly's NLY-F preferred shares offer strong dividends and inflation protection but carry call risk, rated hold for now.

Annaly Capital Management's preferred shares, especially NLY-F, provide attractive dividends with a floating-rate structure that helps mitigate inflation and interest rate risks. NLY-F offers a 4.993% spread, the highest among Annaly's preferred shares, making it appealing for income-focused investors. The preferred shares have strong downside protection due to a high common-equity-to-preferred-equity ratio. However, the main risk is the potential for the company to call the shares, which could affect returns. Currently, NLY-F is rated as a hold, with a buy recommendation possible if prices drop.