| Msg 43884 of 44601 at 2/7/2023 8:51:15 AM by |
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RITM From SA
- The first month of 2023 saw a strong rebound in mortgage REITs as investors sought "deep value" opportunities.
- Despite outperforming in 2022, Rithm Capital trades at a nearly 11% dividend yield, with a ~25% discount to book value.
- Rithm Capital differs from its peers due to its diversified asset exposure and a greater focus on Mortgage Servicing Rights.
- While Mortgage Servicing Rights carry no interest rate risk, they have higher credit risks associated with rising mortgage delinquencies.
- With home affordability and sales at extreme lows with recessionary signals abounding, investors may want to be cautious toward Rithm in 2023.
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