The Institutional Risk Analyst

We have enormous respect for Nierenberg and his team, but wonder why they don't make some obvious adjustments in the business model. For example, NLY has 20% of its capital in agency MSRs and focuses on agency mortgages and MBS, RITM has one of the largest MSR portfolios in the industry and yet is transitioning away from residential mortgages in pursuit of a multi-asset strategy. The result is a business profile that is a challenge to define...

Is the impending ZoMa administration in NY City Hall any worse than the devastation caused by the 2019 Housing Stability & Tenant Protection Act of 2019? We think that the panicked crowd of New York landlords and developers have greatly exaggerated the impact of ZoMa, who is a slick salesman but has even less substance that the disastrous Mayor Bill de Blasio.

Mayor Eric Adams just dropped out of the New York City mayoral race and a silver spoon sucking Indian socialist from Uganda looks set to become the next Mayor of New York. You could never makes this up. But while a lot of political energy is focused on Zohran Kwame Mamdani's plans for rent stabilized properties, it is commercial real estate that pays the bills in New York City.

Is Michael Nierenberg, CEO of Rithm Capital (RITM), really paying a double digit cap rate for an "Irreplaceable Portfolio of Class A" properties in San Francisco and New York? What does this say about the true market value of all New York commercial properties?