Exhibit 12.1

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS AND RATIO OF EARNINGS TO FIXED CHARGES (UNAUDITED)

(Dollars in thousands)

ANNALY CAPITAL MANAGEMENT, INC. AND ITS SUBSIDIARIES

	For the quarters ended March 31,						For the years ended December 31,
	2016			2015			2015		2014			2013		2012		2011
							(dollars in thousands)
Ratio of earnings to fixed charges:
Fixed charges (interest expense)(1)	$	294,922		$	287,659		$	1,096,091	$	1,338,019		$	1,533,008	$	1,560,941	$	1,362,721
Net income (loss) available (attributable) to common shareholders before income taxes and noncontrolling interest(2)	(886,909		)	(494,477		)	391,825		(908,922		)	3,665,943		1,732,282		385,518
Earnings as adjusted	$	(591,987	)	$	(206,818	)	$	1,487,916	$	429,097		$	5,198,951	$	3,293,223	$	1,748,239
Ratio of earnings to fixed charges	(2.01		)	(0.72		)	1.36		0.32			3.39		2.11		1.28
Ratio of earnings to combined fixed charges and preferred stock dividends:
Fixed charges (interest expense)(1)	$	294,922		$	287,659		$	1,096,091	$	1,338,019		$	1,533,008	$	1,560,941	$	1,362,721
Preferred stock dividend	17,992			17,992			71,968		71,968			71,968		39,530		16,854
Combined fixed charges and preferred stock dividends	312,914			305,651			1,168,059		1,409,987			1,604,976		1,600,471		1,379,575
Net income (loss) available (attributable) to common shareholders before income taxes and noncontrolling interest(2)	(886,909		)	(494,477		)	391,825		(908,922		)	3,665,943		1,732,282		385,518
Earnings as adjusted	$	(573,995	)	$	(188,826	)	$	1,559,884	$	501,065		$	5,270,919	$	3,332,753	$	1,765,093
Ratio of earnings to combined fixed charges and preferred stock dividends	(1.83		)	(0.62		)	1.34		0.36			3.28		2.08		1.28

(1) Fixed charges include realized gains (losses) on interest rate swaps

(2) Includes unrealized gains (losses) on Financial Instruments and/or derivatives