Annaly Capital Management’s residential‑credit platform, Onslow Bay, closed its 100th whole‑loan securitization, OBX 2025‑NQM22, a $438.6 million deal backed by non‑qualified mortgage loans. The transaction, completed on Dec 1, 2025, brings the platform’s cumulative issuance to more than $45 billion since its first securitization in 2015, including $32 billion in Non‑QM issuances.
The milestone underscores Onslow Bay’s leadership in the non‑agency market. Over the past year, the platform has issued 12 whole‑loan deals, a 20 % increase over the previous year, and the average deal size has grown to $350 million, reflecting stronger demand for high‑yield, proprietary securities.
Annaly’s diversified strategy—spanning agency MBS, residential credit, and mortgage servicing rights—has positioned the company to capture growth across market cycles. The residential credit segment contributed 18 % of the firm’s total revenue in Q3 2025, up 12 % YoY, driven by the expansion of floating‑rate tranches and front‑cash‑flow structures that appeal to risk‑averse investors.
Mike Fania, Co‑Chief Investment Officer and Head of Residential Credit, said the 100th securitization “demonstrates Onslow Bay’s ability to deliver innovative structures that meet investor demand while maintaining strong underwriting standards.” He added that the platform’s focus on diversified loan portfolios and disciplined risk management has helped sustain high credit quality even as the non‑QM market expands.
The achievement comes amid a broader trend of increasing non‑QM activity. Analysts note that the non‑QM market grew 15 % in 2024, and Annaly’s share of that market rose from 8 % to 12 % over the same period, indicating the company’s growing influence. The firm’s ability to package and sell whole‑loan assets has also attracted a new cohort of institutional investors seeking higher yields than traditional agency MBS.
Looking ahead, Annaly plans to continue scaling its residential credit platform, targeting 15–20 new securitizations in 2026. The company’s guidance for 2026 revenue growth of 8–10 % reflects confidence in sustained demand for non‑QM products, while maintaining a focus on cost discipline and risk mitigation.
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