UPDATE: Compass Point Downgrades Annaly Capital Management to Neutral, Reiterates $17 PT

In a report published earlier today, Compass Point Research & Trading, LLC downgraded its rating for Annaly Capital Management, Inc.

from Buy to Neutral, but reiterated its $17.00 price target. Compass Point went on to say “We expect that the relatively steep yield curve, which has been anchored by the Fed, will remain in place through 2013. Equity and credit considerations continue to keep voluntary prepayment speeds muted relative to the overall level of rates. However, we see incremental policy initiatives as an increased risk factor as we approach the November Presidential election and believe the risk versus return profile of NLY has now become more balanced. While we believe yield will remain an important component of total return for investors, especially in financials, there are other opportunities for investors to achieve comparable current yields with more attractive risk versus return profiles.” Annaly Capital Management closed yesterday at $16.89.