Annaly Capital Management is a real estate investment trust (REIT) that primarily invests in mortgage-backed securities. Founded in 1997, the company focuses on generating income for its shareholders by purchasing and managing a portfolio of these securities, which are backed by residential and commercial mortgages. The firm is known for its dividend payments, which attract income-focused investors. Annaly operates in a regulated environment, adhering to specific tax rules that allow it to avoid federal income taxes, provided it distributes a significant portion of its earnings to shareholders.