NRZ News and Press, New Residential Investment Corp. From 02/22/22

Prices plunged. It wasn’t a surprise. Investors were overpaying and got spanked. Some mortgage REITs are trading at bargain prices now, but beware the fool’s yield. For further details see: Why Mortgage REITs Got Crushed

There are some great opportunities in the securities we cover. It took several months for these opportunities to open up, but they are finally available again. If only investors had the stomach to buy when others are scared. Thankfully, some of the shares remain less attractive. I...

Inflation concerns have started to affect market sentiment, but it is highly uncertain if that will lead to a real market correction or just some short-term dips. I am continuing my monthly investment plans while still awaiting a real market correction or possibly a real crash once ma...

With interest rates rising, the economic backdrop for mortgage real estate investment trusts (REITs) and mortgage originators is becoming more challenging. Rising rates mean less origination business as refinances dwindle, and mortgage-backed securities are under a cloud as the Federal ...

The probability of a mistake from the Federal Reserve increased. Rather than relying on market prices, the Federal Reserve relies on the prices that were paid. Seems reasonable, but the prices paid could be under old contracts. By ignoring clear signs about changes in market price...

U.S. equity markets declined on another volatile week as red-hot inflation data and amplified tensions on the Russia/Ukraine border reversed early-week gains while data showed consumer confidence dipping to decade-lows. Ending the week with a volatile two-day skid, the S&P 500 fin...

As the market tumbles, high yielding preferred shares are going on sale. Some of these shares are usually quite stable, so these sales are rare. We’ve shifted from having almost zero bullish ratings in the sector to more than half bullish outlooks. We’re sharing ...

We take a look at the action in preferreds and baby bonds through the first week of February and highlight some of the key themes we are watching. Preferreds continue to struggle in February with rising Treasury yields proving a serious headwind. Low coupon preferreds are being hi...

New Residential’s 4Q-21 (core) earnings were once again substantially above the dividend pay-out. The mortgage REIT could increase its dividend pay-out by $0.05 per share in 2022. The stock of New Residential is trading at a discount to its book value. Consistently strong f...

With a 9.1% dividend yield, New Residential Investment Corp. appears attractive to many income-oriented investors, especially under a low-rate environment. However, you need to understand the macro credit cycles before investing in NRZ, or mREITs in general. NRZ makes money on the...