On December 1, 2025, Annaly Capital Management, Inc. (NYSE:NLY) announced a significant milestone for its subsidiary, Onslow Bay Financial LLC (OBX), which has successfully closed its 100th residential whole loan securitization, named OBX 2025-NQM22. This landmark transaction marks a remarkable achievement not only for Onslow Bay but also underscores the company's leadership in the Non-Agency market. Since its inaugural securitization in 2015, Onslow Bay has issued over $45 billion in total, with $32 billion attributed to Non-QM (Qualified Mortgage) issuance.

2. Details of the OBX 2025-NQM22 Securitization

The OBX 2025-NQM22 securitization is a $438.6 million privately placed offering backed by Non-QM residential loans. This transaction illustrates Onslow Bay's ongoing commitment to structuring innovative and investor-friendly deals. The platform has achieved several notable accomplishments in recent months, including:

Launching multiple privately placed transactions, allowing customization of deal structures to meet specific investor needs.

Being the first issuer to introduce a floating-rate tranche within a Non-QM transaction, providing critical duration flexibility amid fluctuating interest rates.

Innovating with a front cash flow / last cash flow structure that optimizes risk distribution and aligns with varying duration preferences.

Completing its largest securitization to date, OBX 2025-NQM18, valued at $743 million, aimed at expanding transaction sizes and attracting a wider range of investors.

Executing Onslow Bay’s inaugural structured repo transaction, which offers non-MTM (mark-to-market) financing for retained OBX securities.

Redeeming its first Non-QM securitization, OBX 2022-NQM8, while maintaining an attractive pipeline of callable transactions due to favorable conditions in the securitization market.

3. Leadership Perspective

Mike Fania, Co-Chief Investment Officer and Head of Residential Credit at Annaly, highlighted the significance of this milestone, stating, “Closing our 100th securitization is a testament to the strength and consistency of the Onslow Bay platform, which has become a preeminent leader in the Non-Agency market.” He emphasized the company’s continued expansion in market share and loan volume, attributing this success to innovative structures that offer tailored solutions and superior risk-adjusted returns for Non-Agency investors. Fania also thanked the company's securitization investors and dedicated team members for their crucial roles in achieving this landmark.

4. Onslow Bay's Market Position

As of the third quarter of 2025, Onslow Bay stands as the largest non-bank issuer and the second-largest issuer overall of Prime Jumbo and Expanded Credit mortgage-backed securities (MBS). The platform boasts an average FICO score of 759 and an original loan-to-value (LTV) ratio of 67%, reflecting its disciplined credit framework and focus on structural innovation. These attributes have solidified Onslow Bay's reputation as a preferred counterpart for institutional investors looking to gain exposure to the expanding non-Agency sector.

5. Conclusion

Onslow Bay's achievement of its 100th securitization not only signifies a pivotal moment for the company but also highlights its role in enhancing liquidity within the U.S. housing market. As it continues to innovate and adapt to investor needs, Onslow Bay remains poised for further growth in the non-Agency mortgage market, driven by robust partnerships and a commitment to providing high-quality residential mortgage assets. As Annaly Capital Management forges ahead, stakeholders can expect continued strategic advancements and a focus on delivering value in a dynamic economic landscape.

Original press release