Savvy Trades and Investments

[dmmm]

NRZ 2 more key points. First is they are selling at a discount to their book value, in addition to their book value being understated. Management gets into this on the CC. Their call rights are probably worth ~$5/sh and do not have a significant carrying value on the balance sheet. Another key point is they actually have positive exposure to rising rates because half their net investment is in MSRs which become more valuable in a rising interest rate environment because people are less likely to refinance their mortgage.