Replies to post #495438 on Mr Cooper Group Inc fka COOP

[jjflash49]

AZ,

Thanks and Hello.

As far as your question about a derivative asset value. A derivative value is "derived" from a different asset.

So I'll take a wild stab, and I'm not an expert.

We have a derivative asset value for sure when the PPS is below 1.75, the max number of shares upon conversion and the min stock price for KKR.

So we see the derivative asset value (think of it as a short from a particular price) being positive based upon the value of the asset it's being derived from being less that the conversion price of 1.75.

now heres where I get a little lost in reading the documents....there are three methods to establishing a derivative asset value used by WMIH.
What I'm a little confused about is that I don't believe if the stock goes to zero the derivative value will be $600M(575), I'm thinking it may be $3.00-1.75= $ 1.25/share max....So roughly $250M max derivative Asset value at $0 PPS.

Just throwing it out there for discussion.

[jjflash49]

PS

I believe they use a 20 day weighted average versus a close on the last day of the month for calculations