Annaly Capital Management preferred shares, particularly NLY-G, are among the sector's least risky but currently trade at unattractive valuations. NLY-G offers an 8.22% yield but a negative yield to call, making it less compelling than baby bonds or other preferreds with higher yields and better risk profiles. The low floating spread on NLY-G means dividend income could fall sharply if short-term rates decline, amplifying downside risk in a rate-cut scenario.