Replies to post #568604 on Mr Cooper Group Inc (COOP)

[nadodude]

Good Job Jestiron, you put a cork in old Jerrrrrryyyyyyyyy. BINGO!!

[jerrylev]

Re: Preferred and Trust Securities are funded by distributions on certain series of securities issued by Washington Mutual Preferred Funding LLC, one of our indirect subsidiaries, with similar terms to the relevant series of Preferred and Trust Securities, which we refer to as the “LLC Preferred Securities.”


"Funded" is not the same as "Backed" by assets.

A bank or a company has to make money and they create trusts and assets here and there to make money and in the case of preferred to pay dividends to preferred and in stocks that pay dividends to common such as Apple and GE, etc.

KKR gets dividend income from COOP and COOP has a bunch of ABS trusts that it sells to investors to make money but none is owned by KKR in case that COOP goes belly up.

TPS is actually backed by some REIT assets and trusts but were stolen by JPM and so TPS has no asset to pay it and end up becoming equity.

Every day, RD make posts of debt or trust being sold by all kind of banks in the world but none is owned by any preferred stocks.

Secured bonds are backed by some securities.

Unsecured bonds are not backed by anything.

P.S. this is my last post of the day because I talk too much. I cannot reply in 6 hours and it is unwarranted.

[PickStocks]

Here is a problem why have we not received the cash yet.

[jerrylev]

None of the following Nationstar now Mr Cooper ABS, is "backing" KKR preferred. Yes they create income for Mr Cooper and therefore "fund" the dividend for KKR preferred.

If Mr Cooper goes belly up tomorrow which is unlikely but just for the sake of discussion. KKR preferred may lose all of its value and won't be backed by any ABS.

https://asreport.americanbanker.com/organization/nationstar

On a different subject, we don't give much credit to COOP due to its The Tell stock price but it is amazing that this company services more than half of a trillion of mortgage, some that COOP just services but some were originated by COOP and therefore COOP has to create ABS securities to sell to investors. And then COOP has to collect mortgage payment for its half a trillion mortgage. Imagine tens of billions go through COOP hand every month to make a tiny amount of income.

[hotmeat]

Quote: "Directly from the PQ prospectus (when it "was trading"):"


This is 100% false, Cayman Series were never Series R...the PQ Prospectus shows no such Trusts. What you cited has nothing to do with PQ or KQ...those were the TPS which now belong to JPM, read the POR re "23.2 Cancellation of REIT Series".

Quote: " For the avoidance of doubt, this Section 23.2 shall have no effect on, and shall not result in the extinguishment or cancellation of, the Trust Preferred Securities and, in accordance with the Global Settlement Agreement, JPMC or its designee is the sole legal, equitable and beneficial owner of the Trust Preferred Securities for all purposes."


Again, formerly the supporting assets of the REITS, they never backed the PQ or KQ Preferred stock.

[hotmeat]

QUOTE: "Are you telling me that this is not the prospectus for the WAMPQ IPO?"


I'm not interested in the WAMPQ Prospectus, provide a link to a TRUST that shows it backed PQ and KQ Pref stock. If you took the time to actually read the Prospectus you would have known that there were never any class specific Trusts associated with Prefs. A Prospectus is not a Trust...nonsense!

[hotmeat]

What a great strategy...post erroneous info and when it's called out, throw a tantrum. Excellent!!!