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     <!-- Control Number: form8k                                                           -->
     <!-- Filing Type:    8k                                                               -->
     <!-- Client Name:    Anthracite                                                        -->
     <!-- Project Name:   NY12069                                                          -->
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECURITIES
AND EXCHANGE COMMISSION <BR>WASHINGTON, D.C. 20549  </FONT></TD></TR>
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM
8-K  </FONT></TD></TR>
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<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CURRENT
REPORT<BR>PURSUANT TO SECTION 13 OR 15(D) OF THE<BR> SECURITIES EXCHANGE ACT OF 1934  </FONT></TD></TR>
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     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">October 31, 2003 (October 31, 2003) <!-- DATE --></FONT></TD></tr>
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     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date of Report (Date of Earliest Event Reported) </FONT></TD></TR>
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     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ANTHRACITE CAPITAL, INC.<!-- Name of Registrant --></FONT></TD></TR>
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     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Exact Name of Registrant as Specified in Charter)</FONT></TD></TR>
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<td Align=CENTER Width=33%><Font Face="Times New Roman, Times, Serif" Size=2>Maryland<!-- State--> </font></td>
<td Align=CENTER Width=34%><Font Face="Times New Roman, Times, Serif" Size=2>001-13937<!-- File No.--> </font></td>
<td Align=CENTER Width=33%><Font Face="Times New Roman, Times, Serif" Size=2>13-397-8906<!-- Irs No.--> </font></td>
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<td Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>(State or Other Jurisdiction <br>of Incorporation)
</font></td>
<td Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>(Commission<br>File Number) </font></td>
<td Align=CENTER><Font Face="Times New Roman, Times, Serif" Size=2>(IRS Employer<br> Identification No.) </font></td>
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     <TD WIDTH="75" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="350" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">40 East 52nd Street <!-- ADDRESS --></FONT></TD>
     <TD WIDTH="100" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10022<!-- ZIP CODE --></FONT></TD>
     <TD WIDTH="75" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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     <TD COLSPAN=4 WIDTH="600" ALIGN="CENTER"><HR NOSHADE SIZE=1 width=96%></TD></TR>
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     <TD WIDTH="75" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="350" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Address of Principal Executive Offices) </FONT></TD>
     <TD WIDTH="100" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Zip Code)</FONT></TD>
     <TD WIDTH="75" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Registrant's telephone number, including area code:&nbsp;&nbsp;(212) 409-3333</FONT></TD></TR>
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     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">N/A<!-- FORMER NAME OR ADDRESS --></FONT></TD></TR>
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     <TD WIDTH="600" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Former Name or Former Address, if Changed Since Last Report) </FONT></TD></TR>
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Events.</FONT></H1></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Anthracite
Capital, Inc. (the &#147;Company&#148;) reported the following results on October 31,
2003: </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
October 31, 2003, the Company reported a net loss for the third quarter of 2003 of $0.51
per share versus a loss of $0.26 per share for the second quarter of 2003 and net income
of $0.26 per share for the third quarter of 2002. The third quarter of 2003 results fall
within the range indicated in the Company&#146;s September 25, 2003 news release which
also announced a $0.28 third quarter dividend. This net loss is due primarily to the
Company&#146;s previously announced decision to accelerate the reduction of the risk
associated with the Company&#146;s portfolio of residential mortgage backed securities
(RMBS) in favor of a shift toward credit sensitive assets. Based on the $0.28 per share
dividend declared on September 25, 2003, and the October 30, 2003 closing price of $10.20,
Anthracite&#146;s annualized dividend yield is 11%. (All numbers are thousands, except per
share amounts.) </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Included
in the net loss for the third quarter of 2003 are realized and unrealized gains and losses
that net to a loss of $34,019 ($0.70 per share), which are attributable to the RMBS
portfolio and expenses of hedging that portfolio. Net loss for the quarter also includes a
write down of $5,412 ($0.11 per share) on a franchise loan backed security. The Company
determined it is unlikely that further payments will be received from this franchise loan
backed security and wrote this security down to zero, despite its par balance of $16,366
as of September 30, 2003. This third quarter write down of $0.11 per share had only a
$0.02 per share effect on the Company&#146;s net asset value (&#147;NAV&#148;) at
September 30, 2003 from June 30, 2003. As previously described in the Company&#146;s
filings with the Securities and Exchange Commission, the carrying value and market value
of this franchise loan backed security had already been reduced in the second quarter of
2003. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Company&#146;s third quarter net interest margin was 2.9%. The net interest margin for the
year earlier period were 22.5% and 4.3%, respectively. These changes were due to a
significant reduction in the risk of the Company&#146;s RMBS portfolio and increased
hedging expenses from greater reliance on interest rate swaps and less reliance on
Treasury futures. Operating expenses for the quarter ended September 30, 2003 declined by
$574 as compared to the second quarter, and declined $2,776 for the nine months ended
September 30, 2003 as compared to the comparable prior year period. The principal cause of
the expense decline was a decline in incentive and management fees paid. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As
of September 30, 2003, the Company&#146;s exposure to changes in short-term interest rates
would result in a $0.003 change in annual net income per share for every 50 basis point
change in LIBOR. As of September 30, 2003, the Company&#146;s reported book value would
change by approximately 3.2% for each 50 basis point increase in long-term rates and
approximately 5.3% for a 50 basis point increase in credit spreads. These percentages will
change if fluctuations greater than 50 basis points occur in long-term rates or credit
spreads. </FONT></TD></TR></TABLE><BR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Residential
Mortgage Backed Securities</B><BR>A
low interest rate environment in the first half of the year produced record prepayments
causing significant yield compression for all RMBS products.  At the end of the second  </FONT></TD></TR></TABLE><BR>



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quarter and into the third quarter, a sharp rise in interest rates added to the turmoil.
According to data prepared by Lehman Brothers, the RMBS index turned in its worst
performance ever during the month of July 2003. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
market value of the RMBS portfolio was $874,404 at September 30, 2003. In addition to the
reduction from the $888,878 as of June 30, 2003, the composition and risk of this
portfolio has changed significantly. The Company realized losses during this period as it
continued to reposition its RMBS portfolio. As part of the continuing effort to reduce
interest rate risk in the RMBS portfolio, during the quarter, the Company sold $486,574 of
fixed rate RMBS and purchased $484,840 of hybrid ARM (adjustable rate mortgage) product.
The hybrid ARMs are expected to have less volatility in a rising interest rate
environment and also allow the Company to maintain its regulatory status as it seeks
attractive credit sensitive securities. Total RMBS holdings are expected to continue to
decline from their current level of 39.1% to represent less than 25% of the Company&#146;s
total portfolio within the next several quarters, subject to the availability of high
yield real estate assets and other market conditions. Subsequent to September 30, 2003,
the Company&#146;s RMBS portfolio was reduced by an additional $130,000. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Company also entered into $440,000 of notional par of interest rate swaps and $165,300 of
notional par of ten-year Treasury futures to reduce exposure to rising interest rates.
Each of these hedging instruments was designated as held for trading; therefore, changes
in their value were marked to market through the Company&#146;s consolidated statements of
operations. This action significantly reduced the interest rate sensitivity of the
Company&#146;s RMBS portfolio. The loss in value of the hedges greatly exceeded the change
in value of the assets in the held for trading account, resulting in $0.21 per share of
losses recorded directly into the consolidated statements of operations rather than
accumulated other comprehensive loss in the consolidated statements of financial
condition. Hedges designated as held for trading will create greater income volatility but
will provide greater book value stability. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
breakdown of the RMBS portfolio income performance for the three and nine months ended
September 30, 2003 is as follows:  </FONT></TD></TR></TABLE><BR>



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     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the three and nine months ended<BR>
</FONT></TH>
     <TH align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TH></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
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     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>September 30, 2003</FONT></TH>
     <TH align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></TH></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
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     <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest Income</FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;11,591&nbsp;</FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;45,626&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest Expense *</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9,004)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(26,811)</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net Interest Income</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,587&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18,815&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Realized loss</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(23,981)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(34,581)</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unrealized loss in value **</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10,038)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(11,263)</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net Income (loss) from RMBS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$(31,432)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$(27,029)</FONT></TD></TR>
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>* &nbsp; Includes swap hedging expense <BR>
**&nbsp; Includes mark to market on trading derivatives (includes futures, cap and swaps)
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  <B>Commercial Real Estate Securities</B><BR>The
total amount of commercial real estate (&#147;CRE&#148;) securities increased by $81,971
to $1,229,369 during the third quarter, representing a 7.1% increase. For the nine months
ended September 30, 2003, total CRE increased by $335,024 or 37.5%. The average yield on
the Company&#146;s total CRE (primarily investment grade and below investment
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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2> grade commercial mortgage backed securities (&#147;CMBS&#148;), investment grade REIT debt, and
CMBS IOs) for the second and third quarters respectively was 8.3% and 8.2%,
respectively, while the average yield on only the below investment grade CMBS was 9.6% and
9.7%, respectively. </FONT></TD></TR></TABLE><BR>


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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Company considers the CMBS securities where it maintains the right to control the
foreclosure/workout process on the underlying loans its controlling class CMBS
(&#147;Controlling Class CMBS&#148;). During the third quarter, the Company acquired
$62,111 of par of a 2003 vintage controlling-class CMBS transaction (GECMC 2003-02).
Underlying loan loss expectations on the collateral are estimated at 2.35%. The
loss-adjusted yield on the securities rated B- and lower in aggregate is 11.36%. The
non-rated and B-rated tranches of this transaction were purchased to yield an initial
cash-on-cash return of 21.17% and 18.86%, respectively, and loss-adjusted yields of 9.00%
and 14.42%, respectively. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
portion of this GECMC 2003-02 acquisition was match funded in the Company&#146;s CDO ramp
facility. This completes the $50 million ramp financing facility created in December 2002. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At
September 30, 2003, the Company owned Controlling Class CMBS in nine separate transactions
with a market value of $435,428 and a par of $805,044. The total principal amount of
commercial real estate loans underlying these transactions at acquisition was $12,705,741
and the Company computed its loss adjusted yield assuming $260,817 or 2.05% would be
uncollectable. As of September 30, 2003, the remaining principal amount of the commercial
real estate loans after paydowns and amortization was $11,161,373, and $51,737 of the
$260,817 in assumed losses has been realized; therefore, $209,080 or 80% of the assumed
losses has not been realized. The $51,737 includes losses of $6,999 on loans deemed
uncollectable during the third quarter. The average severity of all loan losses recognized
through September 30, 2003 was 32%. Loan loss severity is the loss from the underlying
loans which the Company incurs, including unpaid interest, late fees and servicer
advances, when an underlying loan is subject to workout with the loan servicer. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Company also tracks loan delinquencies as an indicator of potential losses. At the end of
the second and third quarters, the total delinquencies on the commercial real estate loans
underlying these transactions were 1.74% and 1.54% of their respective quarter end
aggregate loan balances, excluding the GECMC 2003-02 CMBS which was purchased during the
third quarter of 2003. This improvement in delinquency rate was due to seven delinquent
loans being worked out and three being brought current. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
breakdown of the CRE portfolio net interest income and realized gains for the three and
nine months ended September 30, 2003 is as follows: </FONT></TD></TR></TABLE><BR>


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     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the three and nine months ended<BR>
September 30, 2003</FONT><HR WIDTH=99% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
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     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest Income</FONT></TD>
     <TD WIDTH=19% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;26,125&nbsp;</FONT></TD>
     <TD WIDTH=19% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;71,730&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest Expense*</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(12,540)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(35,707)</FONT></TD></TR>
<TR>
     <TD></TD>
 <TD ALIGN="RIGHT" COLSPAN="2"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD></TD>
    </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net Interest Income</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13,585&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36,023&nbsp;</FONT></TD></TR>
<TR>
     <TD></TD>
 <TD ALIGN="RIGHT" COLSPAN="2"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD></TD>
    </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Realized Gains</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,161&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,161&nbsp;</FONT></TD></TR>
<TR>
     <TD></TD>
 <TD ALIGN="RIGHT" COLSPAN="2"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD></TD>
    </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net Interest Income and Realized Gains from</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commercial Real Estate Securities</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;14,746&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;37,184&nbsp;</FONT></TD></TR>
<TR>
     <TD></TD>
 <TD ALIGN="RIGHT" COLSPAN="2"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD></TD>
    </TR>
</TABLE>
<BR>

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<TD>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>* Including hedges in the Company&#146;s CDOs </FONT></P></TD></TR>
</TABLE>
<BR>




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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Commercial
Real Estate Loans</B><BR>Commercial
real estate loans includes the Company&#146;s investment in Carbon Capital, Inc., a
company managed by BlackRock Financial Management, Inc. that invests in mezzanine debt
loans (&#147;Carbon Capital&#148;). The total amount of commercial real estate loans
increased by $9,085 to $91,055 during the third quarter, representing an 11.1% increase.
This includes a $9,402 increase in the Company&#146;s funding of Carbon Capital to
$26,965. For the nine months ended September 30, 2003, the Company&#146;s commercial real
estate loan portfolio increased by $2,129 or 2.4%. Subsequent to September 30, 2003, the
Company increased its commercial real estate loans by $7,000 as it acquired a mezzanine
real estate loan. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
average yield on the Company&#146;s commercial real estate loan portfolio for the second
and third quarters in 2003 was 10.3% and 10.4%, respectively. The total cost of borrowing
secured by loan assets is 2.8%. The Company has two committed warehousing lines that can
be used to finance these assets. There are no delinquencies in any of the commercial real
estate loans owned by the Company or Carbon Capital. The annualized yield on the
Company&#146;s investment in Carbon Capital for the nine months ended September 30, 2003
was 15.3%. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
breakdown of the commercial real estate loan portfolio net interest income performance for
the three and nine months ended September 30, 2003 is as follows: </FONT></TD></TR></TABLE><BR>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the three and nine months ended<BR>
September 30, 2003</FONT><HR WIDTH=98% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest Income</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;2,160&nbsp;</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;7,368&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest Expense</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(136)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(363)</FONT></TD></TR>
<TR>
     <TD></TD>
     <TD COLSPAN="2"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD ALIGN=RIGHT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net Interest Income from Commercial</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Real Estate Loans</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;2,024&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$&nbsp;7,005&nbsp;</FONT></TD></TR>
<TR>
     <TD></TD>
     <TD COLSPAN="2"><HR NOSHADE COLOR=Black SIZE=2></TD>
     <TD ALIGN=RIGHT></TD></TR>
</TABLE>
<BR><BR>




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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Delinquency
Statistics</B><BR>The
delinquencies on the Company&#146;s Controlling Class CMBS have declined since the second
quarter. The table below shows current delinquency and underlying loan losses recognized
on the Company&#146;s Controlling Class CMBS and compares these figures to the comparable
vintages in the Lehman Brothers September 2003 Conduit Guide. </FONT></TD></TR></TABLE><BR>



<BR>
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<BR></TD></TR></TABLE>




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<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
      <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Anthracite Capital</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE=1>The Lehman Brothers
September<BR> 2003 Conduit Guide</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>September 30,<BR>
2003 Underlying<BR>
Loan<BR>
Delinquency</FONT><HR WIDTH=98% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Losses<BR>
Recognized as<BR>
% of<BR>
Underlying<BR>
Loans*</FONT><HR WIDTH=98% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Delinquency as<BR>
a % of<BR>
Underlying<BR>
Loans</FONT><HR WIDTH=98% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Losses Recognized as<BR>
% of<BR>
Underlying<BR>
Loans*</FONT><HR WIDTH=98% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=42% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1998 Transactions</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.06%</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.54%</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.47%</FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.47%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1999 Transactions</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.32%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.50%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.97%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.20%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2001 Transactions</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.00%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.00%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.81%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.06%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2003 Transactions</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.00%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.00%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.04%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.00%</FONT></TD></TR>
<TR>
     <TD></TD>
 <TD ALIGN="RIGHT" COLSPAN="4"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD></TD>
     <TD></TD>
     <TD></TD>
    </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Average - All Transactions</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.37%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.41%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.82%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.34%</FONT></TD></TR>
<TR>
     <TD></TD>
 <TD ALIGN="RIGHT" COLSPAN="4"><HR NOSHADE COLOR=Black SIZE=1></TD>
     <TD></TD>
     <TD></TD>
     <TD></TD>
    </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As of June 30, 2003</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.74%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.34%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.84%</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0.33%</FONT></TD></TR>
</TABLE>
<BR>


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<TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>* </FONT></TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Delinquency statistics are weighted by the Company&#146;s current loan balance, and loss
statistics are weighted by cutoff principal balance</FONT></TD>
</TR>
</TABLE>
<BR>


<BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Book Value</B><BR>Net
book value per share at quarter end was $6.53. The securities of the Company are marked to
market based upon market prices provided by dealers. As the Company&#146;s portfolio
matures, the net book value of credit sensitive CMBS securities held by the Company is
expected to increase towards its original purchase cost, provided that the Company&#146;s
estimates of expected credit losses are accurate. The unrealized loss on all Controlling
Class CMBS at September 30, 2003 was $61,173. This amount reflects the amount of recovery
(net of expected underlying loan losses) if the portfolio is held to maturity. Net book
value per share decreased approximately 8.9% from $7.17 at June 30, 2003 due to sharp
rises in interest rates resulting in realized and unrealized losses associated with
reducing the risk of the RMBS portfolio. Since the securities of the Company are marked to
market, there can be fluctuations in book value based solely on quarterly changes in
credit spreads and interest rates. To the extent that there is a sustained decline in book
value due to changes in credit experience or other permanent factors, then such declines
would effectively reduce earnings. </FONT></TD></TR></TABLE><BR>



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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  <B>Forward Looking Statements</B> <BR>This
Current Report on Form 8-K 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 &#147;trend,&#148; &#147;opportunity,&#148;
&#147;pipeline,&#148; &#147;believe,&#148; &#147;comfortable,&#148; &#147;expect,&#148;
&#147;anticipate,&#148; &#147;current,&#148; &#147;intention,&#148; &#147;estimate,&#148;
&#147;position,&#148; &#147;assume,&#148; &#147;potential,&#148; &#147;outlook,&#148;
&#147;continue,&#148; &#147;remain,&#148; &#147;maintain,&#148; &#147;sustain,&#148;
&#147;seek,&#148; &#147;achieve,&#148; and similar expressions, or future or conditional
verbs such as &#147;will,&#148; &#147;would,&#148; &#147;should,&#148; &#147;could,&#148;
&#147;may&#148; 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 </FONT></TD></TR></TABLE><BR>



<BR>
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<BR></TD></TR></TABLE>



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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  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. </FONT></TD></TR></TABLE><BR>




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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
addition to factors previously disclosed in Anthracite&#146;s Securities and Exchange
Commission (the &#147;SEC&#148;) 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&#146;s assets; (3) the relative and absolute investment performance and
operations of Anthracite&#146;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&#146;s
manager to attract and retain highly talented professionals. </FONT></TD></TR></TABLE><BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Company is filing the Anthracite Capital, Inc. Consolidated Statements of Financial
Condition and Consolidated Statements of Operations as Exhibit 99.1 </FONT></TD></TR></TABLE><BR>

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<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 7.</B> </FONT></TD>
<TD WIDTH=98%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
  <B>Financial Statements, Pro Forma Financial Information and Exhibits.</B> </FONT></TD>
</TR>
</TABLE>
<BR>

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          <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Exhibits. </FONT></TD></TR></TABLE><BR>



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<TD ALIGN=CENTER WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=CENTER WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.1 </FONT></TD>
<TD ALIGN=left WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Anthracite Capital, Inc. Consolidated Statements of Financial<BR>
Condition and Consolidated Statements of Operations.</FONT></TD>
</TR>

<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
</TR>

<TR VALIGN=TOP>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.2</FONT></TD>
<TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Press Release issued by Anthracite Capital, Inc., dated October 31, 2003.</FONT></TD>
</TR></TABLE>
<BR>


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<TD WIDTH=8%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 12. </B></FONT></TD>
<TD WIDTH=92%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Results of Operations and Financial Condition.</B> </FONT></TD>
</TR>
</TABLE>
<BR>




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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October 31, 2003, Anthracite Capital, Inc. issued a press release reporting the Company&#146;s
earnings for the quarter ended September 30, 2003, which the Company is furnishing under
this Item 12 as Exhibit 99.2.  </FONT></TD></TR>
</TABLE>
<BR>


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<TD>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Signatures</B> </FONT></H1></TD></TR>
</TABLE>
<BR>

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<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.  </FONT></TD></TR>
</TABLE>
<BR>






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    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- TYPE "DATE:" HERE--> </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="254"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ANTHRACITE CAPITAL, INC. </FONT></TD>
  </TR>
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<BR>

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    <TD WIDTH="38"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">  </FONT></TD>
    <TD WIDTH="219"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; <!-- DATE--> </FONT></TD>
    <TD WIDTH="28"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="26"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By: </FONT></TD>
    <TD WIDTH="238"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">/s/ Robert L. Friedberg</FONT></TD>
  </TR>
  <TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD>&nbsp; </TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD> <HR NOSHADE SIZE="1"> </TD>
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    <TD WIDTH="344"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD WIDTH="42"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:&nbsp;</FONT></TD>
    <TD WIDTH="214"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Robert L. Friedberg </FONT></TD>
  </TR>
   <TR VALIGN="BOTTOM">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Title: &nbsp;</FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Vice President and Secretary</FONT></TD>
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<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: &nbsp;
 October 31, 2003 </FONT></TD></TR>
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<TD><H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ANTHRACITE
CAPITAL, INC.<BR>
CURRENT REPORT ON FORM 8-K<BR>
Report Dated October 31, 2003 (October 31, 2003) </FONT></H1></TD></TR>
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<TD><H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT INDEX </FONT></H1></TD></TR>
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<Th ALIGN=CENTER WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Exhibit</U> </FONT></Th>
<Th ALIGN=CENTER WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></Th>
<Th ALIGN=left WIDTH=55%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Description</U></FONT></Th>
</TR>
<TR><Th ALIGN=CENTER WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></Th></TR>


<TR VALIGN=TOP>
<TD ALIGN=CENTER WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.1 </FONT></TD>
<Th ALIGN=CENTER WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></Th>

<TD ALIGN=left WIDTH=55%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Anthracite Capital, Inc. Consolidated Statements of Financial<BR>
Condition and Consolidated Statements of Operations.</FONT></TD>
</TR>

<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &nbsp; </FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
</TR>

<TR VALIGN=TOP>
<TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.2</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Press Release issued by Anthracite Capital, Inc., dated October 31, 2003.</FONT></TD>
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{"company-data": {"conformed-name": "ANTHRACITE CAPITAL INC", "cik": "0001050112", "assigned-sic": "6798", "irs-number": "133978906", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-13937", "film-number": "03968286"}, "business-address": {"street1": "40 EAST 52ND STREET", "city": "NEW YORK", "state": "NY", "zip": "10022", "phone": "2127545560"}, "mail-address": {"street1": "40 EAST 52ND STREET", "city": "NEW YORK", "state": "NY", "zip": "10022"}, "former-company": {"former-conformed-name": "ANTHRACITE MORTGAGE CAPITAL INC", "date-changed": "19971121"}}
8K Form
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
October 31, 2003 (October 31, 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
of Incorporation)
(Commission
File Number)
(IRS Employer
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.
Anthracite
Capital, Inc. (the "Company") reported the following results on October 31,
2003:
On
October 31, 2003, the Company reported a net loss for the third quarter of 2003 of $0.51
per share versus a loss of $0.26 per share for the second quarter of 2003 and net income
of $0.26 per share for the third quarter of 2002. The third quarter of 2003 results fall
within the range indicated in the Company's September 25, 2003 news release which
also announced a $0.28 third quarter dividend. This net loss is due primarily to the
Company's previously announced decision to accelerate the reduction of the risk
associated with the Company's portfolio of residential mortgage backed securities
(RMBS) in favor of a shift toward credit sensitive assets. Based on the $0.28 per share
dividend declared on September 25, 2003, and the October 30, 2003 closing price of $10.20,
Anthracite's annualized dividend yield is 11%. (All numbers are thousands, except per
share amounts.)
Included
in the net loss for the third quarter of 2003 are realized and unrealized gains and losses
that net to a loss of $34,019 ($0.70 per share), which are attributable to the RMBS
portfolio and expenses of hedging that portfolio. Net loss for the quarter also includes a
write down of $5,412 ($0.11 per share) on a franchise loan backed security. The Company
determined it is unlikely that further payments will be received from this franchise loan
backed security and wrote this security down to zero, despite its par balance of $16,366
as of September 30, 2003. This third quarter write down of $0.11 per share had only a
$0.02 per share effect on the Company's net asset value ("NAV") at
September 30, 2003 from June 30, 2003. As previously described in the Company's
filings with the Securities and Exchange Commission, the carrying value and market value
of this franchise loan backed security had already been reduced in the second quarter of
2003.
The
Company's third quarter net interest margin was 2.9%. The net interest margin for the
year earlier period were 22.5% and 4.3%, respectively. These changes were due to a
significant reduction in the risk of the Company's RMBS portfolio and increased
hedging expenses from greater reliance on interest rate swaps and less reliance on
Treasury futures. Operating expenses for the quarter ended September 30, 2003 declined by
$574 as compared to the second quarter, and declined $2,776 for the nine months ended
September 30, 2003 as compared to the comparable prior year period. The principal cause of
the expense decline was a decline in incentive and management fees paid.
As
of September 30, 2003, the Company's exposure to changes in short-term interest rates
would result in a $0.003 change in annual net income per share for every 50 basis point
change in LIBOR. As of September 30, 2003, the Company's reported book value would
change by approximately 3.2% for each 50 basis point increase in long-term rates and
approximately 5.3% for a 50 basis point increase in credit spreads. These percentages will
change if fluctuations greater than 50 basis points occur in long-term rates or credit
spreads.
Residential
Mortgage Backed Securities
A
low interest rate environment in the first half of the year produced record prepayments
causing significant yield compression for all RMBS products.  At the end of the second
quarter and into the third quarter, a sharp rise in interest rates added to the turmoil.
According to data prepared by Lehman Brothers, the RMBS index turned in its worst
performance ever during the month of July 2003.
The
market value of the RMBS portfolio was $874,404 at September 30, 2003. In addition to the
reduction from the $888,878 as of June 30, 2003, the composition and risk of this
portfolio has changed significantly. The Company realized losses during this period as it
continued to reposition its RMBS portfolio. As part of the continuing effort to reduce
interest rate risk in the RMBS portfolio, during the quarter, the Company sold $486,574 of
fixed rate RMBS and purchased $484,840 of hybrid ARM (adjustable rate mortgage) product.
The hybrid ARMs are expected to have less volatility in a rising interest rate
environment and also allow the Company to maintain its regulatory status as it seeks
attractive credit sensitive securities. Total RMBS holdings are expected to continue to
decline from their current level of 39.1% to represent less than 25% of the Company's
total portfolio within the next several quarters, subject to the availability of high
yield real estate assets and other market conditions. Subsequent to September 30, 2003,
the Company's RMBS portfolio was reduced by an additional $130,000.
The
Company also entered into $440,000 of notional par of interest rate swaps and $165,300 of
notional par of ten-year Treasury futures to reduce exposure to rising interest rates.
Each of these hedging instruments was designated as held for trading; therefore, changes
in their value were marked to market through the Company's consolidated statements of
operations. This action significantly reduced the interest rate sensitivity of the
Company's RMBS portfolio. The loss in value of the hedges greatly exceeded the change
in value of the assets in the held for trading account, resulting in $0.21 per share of
losses recorded directly into the consolidated statements of operations rather than
accumulated other comprehensive loss in the consolidated statements of financial
condition. Hedges designated as held for trading will create greater income volatility but
will provide greater book value stability.
A
breakdown of the RMBS portfolio income performance for the three and nine months ended
September 30, 2003 is as follows:
For the three and nine months ended
September 30, 2003
Interest Income
$ 11,591
$ 45,626
Interest Expense *
(9,004)
(26,811)
Net Interest Income
2,587
18,815
Realized loss
(23,981)
(34,581)
Unrealized loss in value **
(10,038)
(11,263)
Net Income (loss) from RMBS
$(31,432)
$(27,029)
*   Includes swap hedging expense
**  Includes mark to market on trading derivatives (includes futures, cap and swaps)
Commercial Real Estate Securities
The
total amount of commercial real estate ("CRE") securities increased by $81,971
to $1,229,369 during the third quarter, representing a 7.1% increase. For the nine months
ended September 30, 2003, total CRE increased by $335,024 or 37.5%. The average yield on
the Company's total CRE (primarily investment grade and below investment
grade commercial mortgage backed securities ("CMBS"), investment grade REIT debt, and
CMBS IOs) for the second and third quarters respectively was 8.3% and 8.2%,
respectively, while the average yield on only the below investment grade CMBS was 9.6% and
9.7%, respectively.
The
Company considers the CMBS securities where it maintains the right to control the
foreclosure/workout process on the underlying loans its controlling class CMBS
("Controlling Class CMBS"). During the third quarter, the Company acquired
$62,111 of par of a 2003 vintage controlling-class CMBS transaction (GECMC 2003-02).
Underlying loan loss expectations on the collateral are estimated at 2.35%. The
loss-adjusted yield on the securities rated B- and lower in aggregate is 11.36%. The
non-rated and B-rated tranches of this transaction were purchased to yield an initial
cash-on-cash return of 21.17% and 18.86%, respectively, and loss-adjusted yields of 9.00%
and 14.42%, respectively.
A
portion of this GECMC 2003-02 acquisition was match funded in the Company's CDO ramp
facility. This completes the $50 million ramp financing facility created in December 2002.
At
September 30, 2003, the Company owned Controlling Class CMBS in nine separate transactions
with a market value of $435,428 and a par of $805,044. The total principal amount of
commercial real estate loans underlying these transactions at acquisition was $12,705,741
and the Company computed its loss adjusted yield assuming $260,817 or 2.05% would be
uncollectable. As of September 30, 2003, the remaining principal amount of the commercial
real estate loans after paydowns and amortization was $11,161,373, and $51,737 of the
$260,817 in assumed losses has been realized; therefore, $209,080 or 80% of the assumed
losses has not been realized. The $51,737 includes losses of $6,999 on loans deemed
uncollectable during the third quarter. The average severity of all loan losses recognized
through September 30, 2003 was 32%. Loan loss severity is the loss from the underlying
loans which the Company incurs, including unpaid interest, late fees and servicer
advances, when an underlying loan is subject to workout with the loan servicer.
The
Company also tracks loan delinquencies as an indicator of potential losses. At the end of
the second and third quarters, the total delinquencies on the commercial real estate loans
underlying these transactions were 1.74% and 1.54% of their respective quarter end
aggregate loan balances, excluding the GECMC 2003-02 CMBS which was purchased during the
third quarter of 2003. This improvement in delinquency rate was due to seven delinquent
loans being worked out and three being brought current.
A
breakdown of the CRE portfolio net interest income and realized gains for the three and
nine months ended September 30, 2003 is as follows:
For the three and nine months ended
September 30, 2003
Interest Income
$ 26,125
$ 71,730
Interest Expense*
(12,540)
(35,707)
Net Interest Income
13,585
36,023
Realized Gains
1,161
1,161
Net Interest Income and Realized Gains from
Commercial Real Estate Securities
$ 14,746
$ 37,184
* Including hedges in the Company's CDOs
Commercial
Real Estate Loans
Commercial
real estate loans includes the Company's investment in Carbon Capital, Inc., a
company managed by BlackRock Financial Management, Inc. that invests in mezzanine debt
loans ("Carbon Capital"). The total amount of commercial real estate loans
increased by $9,085 to $91,055 during the third quarter, representing an 11.1% increase.
This includes a $9,402 increase in the Company's funding of Carbon Capital to
$26,965. For the nine months ended September 30, 2003, the Company's commercial real
estate loan portfolio increased by $2,129 or 2.4%. Subsequent to September 30, 2003, the
Company increased its commercial real estate loans by $7,000 as it acquired a mezzanine
real estate loan.
The
average yield on the Company's commercial real estate loan portfolio for the second
and third quarters in 2003 was 10.3% and 10.4%, respectively. The total cost of borrowing
secured by loan assets is 2.8%. The Company has two committed warehousing lines that can
be used to finance these assets. There are no delinquencies in any of the commercial real
estate loans owned by the Company or Carbon Capital. The annualized yield on the
Company's investment in Carbon Capital for the nine months ended September 30, 2003
was 15.3%.
A
breakdown of the commercial real estate loan portfolio net interest income performance for
the three and nine months ended September 30, 2003 is as follows:
For the three and nine months ended
September 30, 2003
Interest Income
$ 2,160
$ 7,368
Interest Expense
(136)
(363)
Net Interest Income from Commercial
Real Estate Loans
$ 2,024
$ 7,005
Delinquency
Statistics
The
delinquencies on the Company's Controlling Class CMBS have declined since the second
quarter. The table below shows current delinquency and underlying loan losses recognized
on the Company's Controlling Class CMBS and compares these figures to the comparable
vintages in the Lehman Brothers September 2003 Conduit Guide.
Anthracite Capital
The Lehman Brothers
September
2003 Conduit Guide
September 30,
2003 Underlying
Loan
Delinquency
Losses
Recognized as
% of
Underlying
Loans*
Delinquency as
a % of
Underlying
Loans
Losses Recognized as
% of
Underlying
Loans*
1998 Transactions
2.06%
0.54%
2.47%
0.47%
1999 Transactions
0.32%
0.50%
1.97%
0.20%
2001 Transactions
0.00%
0.00%
0.81%
0.06%
2003 Transactions
0.00%
0.00%
0.04%
0.00%
Average - All Transactions
1.37%
0.41%
1.82%
0.34%
As of June 30, 2003
1.74%
0.34%
1.84%
0.33%
*
Delinquency statistics are weighted by the Company's current loan balance, and loss
statistics are weighted by cutoff principal balance
Book Value
Net
book value per share at quarter end was $6.53. The securities of the Company are marked to
market based upon market prices provided by dealers. As the Company's portfolio
matures, the net book value of credit sensitive CMBS securities held by the Company is
expected to increase towards its original purchase cost, provided that the Company's
estimates of expected credit losses are accurate. The unrealized loss on all Controlling
Class CMBS at September 30, 2003 was $61,173. This amount reflects the amount of recovery
(net of expected underlying loan losses) if the portfolio is held to maturity. Net book
value per share decreased approximately 8.9% from $7.17 at June 30, 2003 due to sharp
rises in interest rates resulting in realized and unrealized losses associated with
reducing the risk of the RMBS portfolio. Since the securities of the Company are marked to
market, there can be fluctuations in book value based solely on quarterly changes in
credit spreads and interest rates. To the extent that there is a sustained decline in book
value due to changes in credit experience or other permanent factors, then such declines
would effectively reduce earnings.
Forward Looking Statements
This
Current Report on Form 8-K 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.
The
Company is filing the Anthracite Capital, Inc. Consolidated Statements of Financial
Condition and Consolidated Statements of Operations as Exhibit 99.1
Item 7.
Financial Statements, Pro Forma Financial Information and Exhibits.
(c)           
          Exhibits.
99.1
Anthracite Capital, Inc. Consolidated Statements of Financial
Condition and Consolidated Statements of Operations.
99.2
Press Release issued by Anthracite Capital, Inc., dated October 31, 2003.
Item 12.
Results of Operations and Financial Condition.
On
October 31, 2003, Anthracite Capital, Inc. issued a press release reporting the Company's
earnings for the quarter ended September 30, 2003, which the Company is furnishing under
this Item 12 as Exhibit 99.2.
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:  
 October 31, 2003
ANTHRACITE
CAPITAL, INC.
CURRENT REPORT ON FORM 8-K
Report Dated October 31, 2003 (October 31, 2003)
EXHIBIT INDEX
Exhibit
Description
99.1
Anthracite Capital, Inc. Consolidated Statements of Financial
Condition and Consolidated Statements of Operations.
99.2
Press Release issued by Anthracite Capital, Inc., dated October 31, 2003.