NRZ - New Residential Investment: Overvalued And Market Timing Based On Yield Spread

• At its current price levels (~$10), investment in New Residential Investment represents an average business for sale at a slightly overvalued price.
• Investment at the current price still provides good potential for a single-digit return and a good 8% current dividend income in the midterm.
• Furthermore, NRZ has made significant progress growing market share since the COVID bottom and is more conservatively leveraged than the sector.
• Lastly, for investors interested in market timing, this article also describes a method based on yield spread.

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