Accordingly, the sector sold off sharply throughout the week, particularly punishing shares of bellweather Annaly Capital (NLY) and rookie Hatteras Financial (HTS). Reuters reported earlier in the week that options volume in Annaly was over ten times the normal volume, for example. Capital Trust bounces back The commercial mREITs fared slightly better than their agency counterparts this week after analysts at UBS AG (UBS) upgraded Capital Trust (CT) from Sell to Neutral on expectations of "decent" second-quarter results. Despite the upgrade, analyst Omotayo Okusanya remained concerned about earnings and dividend risk. Because Capital Trust holds most of its investments to maturity, a weaker performance in CMBS, particularly the subordinated notes held by Capital Trust, could lead to a sharp increase in loan loss provisions.