Subject: File No. S7-34-11
From: Philip Kenney

October 12, 2011

Thank you for investigating mortgage related pools. As Mom Pop investors who have invested in Annaly Capital Management, a business that provides a funding source for mortgages for people, we feel our capital serves a very important role in the great, though ever-changing, American dream. Owning your own home, this is basic. This owning contributes to true happiness. It is a wonderful goal.
We think that investing our hard-earned retirement money in a company overseen by the Commission gives us the protection we need. Lately it seems like all the bundling, pooling, mixing of capital invested on Wall Street has been creating a big fog around the direction our finances are going. We like the dividends this mortgage REIT company is able to provide. We need them for the retirement picture. We are not planning on the stock itself having much upside.
Please be careful not to over-tinker in your investigation, it could hurt the availability of private funding. Investors could lose confidence and then lose money. No good. It could also affect the entire housing market which is already reeling. As a semi-retired carpenter, I understand first-hand what a huge segment of our economy relies on the availability of mortgage money. In our research of Annaly Capital Management it seems the management is capable and running the business the correct way.
The Commission is on an important investigation and charged with the duty to protect, as the Investment Company Act intends. Too much leverage is no good. Good luck with your investigation, but please keep in mind the fragility of current conditions in the housing market and stock market. There are many senior citizens who have their life savings at stake.
Thank you for your attention.