Brief clip from BTIG analyst Eric Hagen....
WHAT YOU SHOULD KNOW: We quickly summarize the pro-forma balance sheet and
1H21 GAAP income statement reflecting NRZ's $1.3 billion acquisition of Caliber Home
Loans completed on 8/23 (see page 2). Caliber's financials through June were supplied
alongside NRZ's issuance last week of $489 million Series D preferred stock (including
the greenshoe). With the addition of the preferred, and our current estimate for book
value around $11.40, the company is capitalized with roughly $5.3 billion in common
equity and $1.3 billion in preferred. We peg its gross hurdle rate around 11%, which
still offers the opportunity to build some capital given our estimate for at least a 12.5%
ROTCE next year. We think upside could especially materialize if accretive opportunities
like lender risk sharing with the GSEs come to fruition.