NRZ - New Residential: Ready For High Interest Rates?

• The yield curve has briefly inverted in April 2022, and the spread between 10-year and 2-year treasury rates jittered below 0% briefly.
• Such inversion has historically been the leading signal for a turbulent equity market, especially in the mREITs sector.
• New Residential will have its fair share of difficulties when the spread further narrows.
• But it's better positioned. The Caliber acquisition helps to diversify its profits and dampen its rate sensitivity.

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