When we speak about the residential mortgage, we must know that there are various types of assets that those who are interested can invest in. The income derived from the mortgage pool is adapted to specific elements and divided into a number of tranches that can be purchased by the investor. By dividing these financing services and incomes into different classes – we can consider risk and estimated returns of an asset.
A man that keeps all the information up in his sleeve is Michael Nierenberg — A Board Chairman/CEO of New Residential Investment Corp.
We all know that the interest rates are the key factor in investing and results that come after.
But, how interest rate fluctuations can make an influence on investment managers? The New Residential Investment Corp. Chairman/CEO Mike Nierenberg claim there is a solution. Namely, New Residential Investment Corp. has four specialized strategies that will show us how a public real estate investment trust can overcome changes in the frames of the interest rate.
Interest rates and securities with fixed rate are showing us in practice something that is called an inverse relationship. That means when one element goes up, the other one must come down. The changes over price are the consequence of the “scarcity value” – a lack of a specific bond.
Michael Nierenberg And His Role In The New Residential
The New Residential Investment Corp. is focusing on investments that include mortgage servicing and residential mortgage securities (RMBS). The strategies of The New Residential Investment Corp. are influenced by financial volatility like fluctuations of the interest rate.
They are relying on four specialized strategies: asset specialization, active management, undervalued assets, and new acquisitions.
This company is more than qualified for all matters of ownership, mortgage or servicing rights. During 2018 this company has also added services of the in-house mortgage as well as other servicing within the company’s capabilities.
Before he started working as CEO of New Residential, Michael Nierenberg served as head of Global Mortgages and Securitized Products at Bank of America Merrill Lynch. He was responsible for the sales and trading division. Michael Nierenberg is well-known for his expertise and large experience.