For most individuals flashes of insight do not occur overnight, these insights come about from years of expertise within a field. Experts compound their knowledge within a particular topic and gain unrivaled expertise within the field as they spend more hours and devote themselves more intensely to their specific and unique field. Michael Nierenberg has done this with the field of real estate, he has spent countless hours in the field of real estate, specifically mortgages in various forms and he’s learned quite a bit over the years. Michael Nierenberg has worked with financial institutions such as JP Morgan, Bear Stearns, Lehman Brothers, and other financial institutions as well.
Michael Nierenberg has been in many a varied environment, and has seen how mortgages can do in a great climate and in an economic downturn as well. Michael Nierenberg has seen it all. He is now working with the New Residential Investment Corporation as the chief executive officer and the Chairman of the Board to where he’s able to make a large impact of the portfolio’s of his investors and on that of the firms as well. Michael Nierenberg and his team are aware of the different fluctuations that may take place over the course of several years to decades have learned and prepared for these different movements to protect themselves and their investors. Public investors will know that publicly traded mortgage REITs have an advantage over equity REITs because of the fact that a proficient manager is able to move financial products in a more simple manner. As such, investors can have and experience more comfort in knowing that there’s more liquidity with a mortgage REIT.
How Does the New Residential Investment Corporation Earn Money ?
The New Residential Investment Corporation utilizes a variety of financial vehicles to support their stable high dividends. These investments will include MSR’s, residential securities and call rights, residential loans, consumer loans, and cash, among other financial assets if they so deem. New Residential Investment Corporation will aim to earn money on the spread between the money the borrow and the financial assets they will purchase, they will split the difference in rates in their investments and earn from the split.