Replies to post #705 on Rithm Capital Corp (RITM)

[vpagano]

And they are, or approved a new buyback recently. Internalizing management this year was important, as then can focus better on BVPS and economic return vs. incentives lingering to grow assets (and therefore outside fees) no matter the return profile.

[Enterprising Investor]

Not necessarily.

Bulk MSR acquisitions require a large amount of cash when an opportunity arises. Each time, the company has floated a secondary offering. Then, the price goes down for a short period of time.

Plus, the recently-enacted Inflation Reduction Act of 2022 includes a new, non-deductible, 1% excise tax on “repurchases” of the stock of “covered corporations” which occur after 12/31/22.