Re: Dividend speculation
The addition of preferred stock (which is trading above par) creates an interesting opportunity for NRZ management to modify their capital structure and reduce their WACC (weighted average cost of capital). I believe the second preferred issue has given NRZ the capacity to displace higher cost common shares via buy backs. I think Michael N. Is wicked smart. Using the preferred shares to buy back common shares at 90% or less of book value is a no-brainer. Short term, it will boost EPS and book value. Long term, it should reduce the cost of capital for NRZ which would support future secondary offerings and growth.