The first quarter of 2022 was supposed to be particularly brutal for mortgage originators and mortgage real estate investment trusts (REITs). The Fed has begun a series of increases in the Fed Funds rate designed to put the brakes on rising inflation. At the same time, the Fed is preparing to let its holdings of mortgage-backed securities decrease.
Rising rates are bad news for mortgage originators, and reduced demand for mortgage-backed securities is bad news for mortgage REITs . New Residential (NYSE: NRZ) managed to report an increase in earnings and book value per share. So what are they doing differently?
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For further details see:
Why Rising Rates Helped New Residential Increase Its Book Value