811121.01-New York Server 7A - MSW

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                    FORM 8-K


                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


                     September 25, 2003 (September 25, 2003)
                Date of Report (Date of Earliest Event Reported)


                            ANTHRACITE CAPITAL, INC.
               (Exact name of Registrant as Specified in Charter)




          Maryland                    001-13937              13-397-8906
-----------------------------     -----------------    -----------------------
(State or Other Jurisdiction         (Commission            (IRS Employer
     of Incorporation)               File Number)         Identification No.)




          40 East 52nd Street                            10022
----------------------------------          --------------------------------
 (Address of Principal Executive Offices)              (Zip Code)


       Registrant's telephone number, including area code: (212) 409-3333


                                       N/A
------------------------------------------------------------------------------
          (Former Name or Former Address, if Changed Since Last Report)



Item 5.           Other Events

         On September  25, 2003,  Anthracite  Capital,  Inc.  (the  "Company")
issued a press release  announcing an acceleration of the Company's  strategic
reduction  in  residential  mortgage  backed  securities.   The  Company  also
announced a cash dividend of $0.28 per share of the Company's common stock for
the quarter ending September 30, 2003. A copy of the press release is attached
hereto  as  Exhibit  99.1  and is  incorporated  herein  by  reference  in its
entirety.


Item 7.   Financial Statements, Pro Forma Financial Information and Exhibits.

(c) Exhibits.

         99.1    Press Release issued by Anthracite Capital, Inc., dated
                 September 25, 2003.



                                   Signatures

         Pursuant to the requirements of the Securities  Exchange Act of 1934,
the  Registrant  has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                      ANTHRACITE CAPITAL, INC.

                                      By: /s/ Robert L. Friedberg
                                          __________________________
                                          Name:   Robert L. Friedberg
                                          Title:  Vice President and Secretary



Dated:  September 25, 2003

<PAGE>


                            ANTHRACITE CAPITAL, INC.
                           CURRENT REPORT ON FORM 8-K
              Report Dated September 25, 2003 (September 25, 2003)



                                  EXHIBIT INDEX

Exhibit No.      Description

99.1             Press Release issued by Anthracite Capital, Inc., dated
                 September 25, 2003.
<PAGE>


                                                                 Exhibit 99.1


Contact:  Raymond Ahn
          212-754-5359
          ahr-info@blackrock.com


   ANTHRACITE CAPITAL ANNOUNCES ACCELERATION OF STRATEGIC REDUCTION IN RMBS
          PORTFOLIO TO REDUCE EARNINGS VOLATILITY; CASH DIVIDEND OF
                            $0.28 PER COMMON SHARE

NEW YORK, NY, September 25, 2003 - Anthracite Capital, Inc. ("Anthracite" or
the "Company") (NYSE: AHR) today announced an acceleration of its strategic
reduction in residential mortgage backed securities ("RMBS"). This strategic
reduction in RMBS is expected to reduce earnings volatility of the Company
over time.

Hugh Frater, President and Chief Executive Officer of the Company, said, "The
Company and the Board of Directors have decided to accelerate the Company's
strategic reduction of RMBS. This action is being taken because of the
volatility of interest rates and the structural changes in the RMBS market.
These changes, in the Company's view, have made holding a significant
portfolio of RMBS securities inconsistent with the principal long-term
strategic goal of the Company -- a dividend supported by consistent GAAP
earnings."

Mr. Frater added, "Interest rates and the residential mortgage market have
been extremely volatile. By reducing our RMBS holdings, it is expected that
the Company's earnings will be more consistent. As previously disclosed, we
have been pursuing a reduction of the size of our RMBS portfolio for some
time. This is due to our reduced need for liquidity and also to our increasing
concern over the risk adjusted returns available from investing in fixed rate
RMBS. Based on current market conditions, we expect the allocation to RMBS to
represent less than 25% of our total portfolio within the next few quarters,
and our portfolio going forward is expected to reflect our longstanding
intention to be primarily a holder of credit sensitive commercial real estate
assets."

Mr. Frater continued, "The market phenomena behind this balance sheet
restructuring is worthy of discussion given its significance for shareholders.
Historically low interest rates in 2003, when combined with historically low
costs of refinancing home mortgages, have led to record prepayments of RMBS as
homeowners refinanced their mortgages underlying the RMBS. The large increase
in interest rates in July 2003 spurred an expected slowdown in refinancings,
which led to an increase in the expected duration and interest rate
sensitivities of RMBS portfolios. We believe that across the capital markets
this led owners of RMBS who hedge their holdings to sell Treasury securities
in order to maintain the expected duration and interest rate sensitivities of
their RMBS portfolios at a lower level. We also believe this selling, in and
of itself, made interest rates increase even higher and helped produce
extremely volatile bond market performance."

Third Quarter Dividend Declaration
As a consequence of the accelerated reduction in RMBS and market volatility,
the Company's Board of Directors declared a cash dividend for the quarter
ending September 30, 2003 of $0.28 per share of common stock. The cash
dividend will be payable on October 31, 2003 to shareholders of record on
September 30, 2003. The annualized dividend yield is 10.44% based upon the
$10.73 closing price of Anthracite's common stock on September 24, 2003. The
dividend is being adjusted to a level that the Company believes is more
consistent with current market conditions.

Outlook and Reduced Management Fee
Primarily due to unrealized losses associated with stabilizing the interest
rate sensitivity of the RMBS portfolio and realized losses in connection with
downsizing the RMBS portfolio to further reduce risk, the Company expects to
report net GAAP losses in the third quarter in the range of $0.40 to $0.52 per
share of common stock. Reported GAAP earnings could continue to have some
volatility based on the ongoing hedging requirements of the RMBS portfolio as
it is reduced. In connection with the reduction in the dividend, management
fees will be reduced by 20% over the next few quarters.

Shareholder Information
Anthracite has a dividend reinvestment plan that provides current owners of its
common stock with a simple economical and convenient method of increasing their
investment. Even if you are not a current owner of Anthracite common stock, the
Company's transfer agent can issue registered stock directly to you without
commission or markup. This transaction can be done regardless of whether or not
shares are held in street name. To take advantage of this program stockholders
must submit a signed authorization form to the Company's Transfer Agent. A
printable version of the form is available on the Company's website or you can
call or email the Company to obtain the authorization form and instructions. The
Company's website address is www.anthracitecapital.com. The Company is currently
offering a 2% discount to the trailing 12 business days' average, provided the
stock price remains above threshold levels established by the Company at the
time.

About Anthracite
Anthracite Capital, Inc. is a specialty finance company focused on investments
in high yield real estate loans and related securities. Anthracite is externally
managed by BlackRock Financial Management, Inc., which is a subsidiary of
BlackRock, Inc. ("BlackRock") (NYSE:BLK), one of the largest publicly traded
investment management firms in the United States with over $286 billion in
global assets under management as of June 30, 2003. BlackRock is a member of The
PNC Financial Services Group, Inc. ("PNC") (NYSE:PNC), a diversified financial
services organization. Through its affiliates, PNC originates commercial,
multifamily and residential real estate loans, and services $79 billion in
commercial mortgage loans for third parties through its Midland Loan Services,
Inc. subsidiary as of August 31, 2003.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act with respect to future financial or
business performance, strategies or expectations. Forward-looking statements are
typically identified by words or phrases such as "trend," "opportunity,"
"pipeline," "believe," "comfortable," "expect," "anticipate," "current,"
"intention," "estimate," "position," "assume," "potential," "outlook,"
"continue," "remain," "maintain," "sustain," "seek," "achieve," and similar
expressions, or future or conditional verbs such as "will," "would," "should,"
"could," "may" or similar expressions. Anthracite cautions that forward-looking
statements are subject to numerous assumptions, risks and uncertainties, which
change over time. Forward-looking statements speak only as of the date they are
made, and Anthracite assumes no duty to and does not undertake to update
forward-looking statements. Actual results could differ materially from those
anticipated in forward-looking statements and future results could differ
materially from historical performance.

In addition to factors previously disclosed in Anthracite's Securities and
Exchange Commission (the "SEC") reports and those identified elsewhere in this
press release, the following factors, among others, could cause actual results
to differ materially from forward-looking statements or historical
performance: (1) the introduction, withdrawal, success and timing of business
initiatives and strategies; (2) changes in political, economic or industry
conditions, the interest rate environment or financial and capital markets,
which could result in changes in the value of Anthracite's assets; (3) the
relative and absolute investment performance and operations of Anthracite's
manager; (4) the impact of increased competition; (5) the impact of capital
improvement projects; (6) the impact of future acquisitions; (7) the
unfavorable resolution of legal proceedings; (8) the extent and timing of any
share repurchases; (9) the impact, extent and timing of technological changes
and the adequacy of intellectual property protection; (10) the impact of
legislative and regulatory actions and reforms and regulatory, supervisory or
enforcement actions of government agencies relating to Anthracite, BlackRock
or PNC; (11) terrorist activities, which may adversely affect the general
economy, real estate, financial and capital markets, specific industries, and
Anthracite and BlackRock; and (12) the ability of Anthracite's manager to
attract and retain highly talented professionals.

Anthracite's Annual Report on Form 10-K for the year ended December 31, 2002
and Anthracite's subsequent reports filed with the SEC, accessible on the
SEC's website at http://www.sec.gov, identify additional factors that can
affect forward-looking statements.

To learn more about Anthracite Capital, Inc., visit our website at
www.anthracitecapital.com

                                      ##
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811121.01-New York Server 7A - MSW

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                     September 25, 2003 (September 25, 2003)
                Date of Report (Date of Earliest Event Reported)

                            ANTHRACITE CAPITAL, INC.
               (Exact name of Registrant as Specified in Charter)

          Maryland                    001-13937              13-397-8906
-----------------------------     -----------------    -----------------------
(State or Other Jurisdiction         (Commission            (IRS Employer
     of Incorporation)               File Number)         Identification No.)

          40 East 52nd Street                            10022
----------------------------------          --------------------------------
 (Address of Principal Executive Offices)              (Zip Code)

       Registrant's telephone number, including area code: (212) 409-3333

                                       N/A
------------------------------------------------------------------------------
          (Former Name or Former Address, if Changed Since Last Report)

Item 5.           Other Events

         On September  25, 2003,  Anthracite  Capital,  Inc.  (the  "Company")
issued a press release  announcing an acceleration of the Company's  strategic
reduction  in  residential  mortgage  backed  securities.   The  Company  also
announced a cash dividend of $0.28 per share of the Company's common stock for
the quarter ending September 30, 2003. A copy of the press release is attached
hereto  as  Exhibit  99.1  and is  incorporated  herein  by  reference  in its
entirety.

Item 7.   Financial Statements, Pro Forma Financial Information and Exhibits.

(c) Exhibits.

         99.1    Press Release issued by Anthracite Capital, Inc., dated
                 September 25, 2003.

                                   Signatures

         Pursuant to the requirements of the Securities  Exchange Act of 1934,
the  Registrant  has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                      ANTHRACITE CAPITAL, INC.

                                      By: /s/ Robert L. Friedberg
                                          __________________________
                                          Name:   Robert L. Friedberg
                                          Title:  Vice President and Secretary

Dated:  September 25, 2003
ANTHRACITE CAPITAL, INC.
                           CURRENT REPORT ON FORM 8-K
              Report Dated September 25, 2003 (September 25, 2003)

                                  EXHIBIT INDEX

Exhibit No.      Description

99.1             Press Release issued by Anthracite Capital, Inc., dated
                 September 25, 2003.
Exhibit 99.1

Contact:  Raymond Ahn
          212-754-5359
          ahr-info@blackrock.com

   ANTHRACITE CAPITAL ANNOUNCES ACCELERATION OF STRATEGIC REDUCTION IN RMBS
          PORTFOLIO TO REDUCE EARNINGS VOLATILITY; CASH DIVIDEND OF
                            $0.28 PER COMMON SHARE

NEW YORK, NY, September 25, 2003 - Anthracite Capital, Inc. ("Anthracite" or
the "Company") (NYSE: AHR) today announced an acceleration of its strategic
reduction in residential mortgage backed securities ("RMBS"). This strategic
reduction in RMBS is expected to reduce earnings volatility of the Company
over time.

Hugh Frater, President and Chief Executive Officer of the Company, said, "The
Company and the Board of Directors have decided to accelerate the Company's
strategic reduction of RMBS. This action is being taken because of the
volatility of interest rates and the structural changes in the RMBS market.
These changes, in the Company's view, have made holding a significant
portfolio of RMBS securities inconsistent with the principal long-term
strategic goal of the Company -- a dividend supported by consistent GAAP
earnings."

Mr. Frater added, "Interest rates and the residential mortgage market have
been extremely volatile. By reducing our RMBS holdings, it is expected that
the Company's earnings will be more consistent. As previously disclosed, we
have been pursuing a reduction of the size of our RMBS portfolio for some
time. This is due to our reduced need for liquidity and also to our increasing
concern over the risk adjusted returns available from investing in fixed rate
RMBS. Based on current market conditions, we expect the allocation to RMBS to
represent less than 25% of our total portfolio within the next few quarters,
and our portfolio going forward is expected to reflect our longstanding
intention to be primarily a holder of credit sensitive commercial real estate
assets."

Mr. Frater continued, "The market phenomena behind this balance sheet
restructuring is worthy of discussion given its significance for shareholders.
Historically low interest rates in 2003, when combined with historically low
costs of refinancing home mortgages, have led to record prepayments of RMBS as
homeowners refinanced their mortgages underlying the RMBS. The large increase
in interest rates in July 2003 spurred an expected slowdown in refinancings,
which led to an increase in the expected duration and interest rate
sensitivities of RMBS portfolios. We believe that across the capital markets
this led owners of RMBS who hedge their holdings to sell Treasury securities
in order to maintain the expected duration and interest rate sensitivities of
their RMBS portfolios at a lower level. We also believe this selling, in and
of itself, made interest rates increase even higher and helped produce
extremely volatile bond market performance."

Third Quarter Dividend Declaration
As a consequence of the accelerated reduction in RMBS and market volatility,
the Company's Board of Directors declared a cash dividend for the quarter
ending September 30, 2003 of $0.28 per share of common stock. The cash
dividend will be payable on October 31, 2003 to shareholders of record on
September 30, 2003. The annualized dividend yield is 10.44% based upon the
$10.73 closing price of Anthracite's common stock on September 24, 2003. The
dividend is being adjusted to a level that the Company believes is more
consistent with current market conditions.

Outlook and Reduced Management Fee
Primarily due to unrealized losses associated with stabilizing the interest
rate sensitivity of the RMBS portfolio and realized losses in connection with
downsizing the RMBS portfolio to further reduce risk, the Company expects to
report net GAAP losses in the third quarter in the range of $0.40 to $0.52 per
share of common stock. Reported GAAP earnings could continue to have some
volatility based on the ongoing hedging requirements of the RMBS portfolio as
it is reduced. In connection with the reduction in the dividend, management
fees will be reduced by 20% over the next few quarters.

Shareholder Information
Anthracite has a dividend reinvestment plan that provides current owners of its
common stock with a simple economical and convenient method of increasing their
investment. Even if you are not a current owner of Anthracite common stock, the
Company's transfer agent can issue registered stock directly to you without
commission or markup. This transaction can be done regardless of whether or not
shares are held in street name. To take advantage of this program stockholders
must submit a signed authorization form to the Company's Transfer Agent. A
printable version of the form is available on the Company's website or you can
call or email the Company to obtain the authorization form and instructions. The
Company's website address is www.anthracitecapital.com. The Company is currently
offering a 2% discount to the trailing 12 business days' average, provided the
stock price remains above threshold levels established by the Company at the
time.

About Anthracite
Anthracite Capital, Inc. is a specialty finance company focused on investments
in high yield real estate loans and related securities. Anthracite is externally
managed by BlackRock Financial Management, Inc., which is a subsidiary of
BlackRock, Inc. ("BlackRock") (NYSE:BLK), one of the largest publicly traded
investment management firms in the United States with over $286 billion in
global assets under management as of June 30, 2003. BlackRock is a member of The
PNC Financial Services Group, Inc. ("PNC") (NYSE:PNC), a diversified financial
services organization. Through its affiliates, PNC originates commercial,
multifamily and residential real estate loans, and services $79 billion in
commercial mortgage loans for third parties through its Midland Loan Services,
Inc. subsidiary as of August 31, 2003.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act with respect to future financial or
business performance, strategies or expectations. Forward-looking statements are
typically identified by words or phrases such as "trend," "opportunity,"
"pipeline," "believe," "comfortable," "expect," "anticipate," "current,"
"intention," "estimate," "position," "assume," "potential," "outlook,"
"continue," "remain," "maintain," "sustain," "seek," "achieve," and similar
expressions, or future or conditional verbs such as "will," "would," "should,"
"could," "may" or similar expressions. Anthracite cautions that forward-looking
statements are subject to numerous assumptions, risks and uncertainties, which
change over time. Forward-looking statements speak only as of the date they are
made, and Anthracite assumes no duty to and does not undertake to update
forward-looking statements. Actual results could differ materially from those
anticipated in forward-looking statements and future results could differ
materially from historical performance.

In addition to factors previously disclosed in Anthracite's Securities and
Exchange Commission (the "SEC") reports and those identified elsewhere in this
press release, the following factors, among others, could cause actual results
to differ materially from forward-looking statements or historical
performance: (1) the introduction, withdrawal, success and timing of business
initiatives and strategies; (2) changes in political, economic or industry
conditions, the interest rate environment or financial and capital markets,
which could result in changes in the value of Anthracite's assets; (3) the
relative and absolute investment performance and operations of Anthracite's
manager; (4) the impact of increased competition; (5) the impact of capital
improvement projects; (6) the impact of future acquisitions; (7) the
unfavorable resolution of legal proceedings; (8) the extent and timing of any
share repurchases; (9) the impact, extent and timing of technological changes
and the adequacy of intellectual property protection; (10) the impact of
legislative and regulatory actions and reforms and regulatory, supervisory or
enforcement actions of government agencies relating to Anthracite, BlackRock
or PNC; (11) terrorist activities, which may adversely affect the general
economy, real estate, financial and capital markets, specific industries, and
Anthracite and BlackRock; and (12) the ability of Anthracite's manager to
attract and retain highly talented professionals.

Anthracite's Annual Report on Form 10-K for the year ended December 31, 2002
and Anthracite's subsequent reports filed with the SEC, accessible on the
SEC's website at http://www.sec.gov, identify additional factors that can
affect forward-looking statements.

To learn more about Anthracite Capital, Inc., visit our website at
www.anthracitecapital.com

                                      ##