Michael Nierenberg Deploys Four Game-Changing Investment Strategies

Michael Nierenberg serves at New Residential Investment Corp as the President and CEO. He is also the chairperson of the board at the company. New Residential Investment Corp. is a real estate investment company that invests and manages residential mortgages. The company also offers consumer loans such as homeowner loans. It operates in the United States.

Prior to joining New Residential, Michael served at the Bank of America Merrill Lynch as a managing director. His roles at the company included overseeing all sales as well as trading activities in the department. Michael Nierenberg has held several managerial positions in various Fortune 500 companies. He has vast experience in the field of banking and mortgages.

Interest rates define the success and direction of investment management. New Residential Investment Corp. has found a way to overcome the impact of interest rates in investment trusts.

The relationship between fixed-rate securities and interest rate securities is inverse. This means that when one goes up, the other one goes down. Some of the factors that change the price for a particular bond include scarcity value and the yield curve. Interest rates, on the other hand, fluctuate due to change in taxes, investor’s risk tolerance, current inflation rates, and returns on competing investments.

For an investment management company to be profitable, portfolio managers must find a way to balance competing factors that lead to changes in interest rates. Interest rates will definitely change. But the uncertainty is when they will fluctuate. New Investment Residential Corp. has invented four strategies to handle the ever-changing business scenarios caused by financial volatility such as fluctuating interest rates.

The four strategies are new acquisitions, active management, asset specialization, and monetizing undervalued assets. New Residential has started acquiring companies that exercise more internal control over loan decisions and mortgage servicing. This move will reduce uncertainty and structure of the mortgage industry.

The company invests in opportunistic which include undervalued assets. It then transforms the assets to highly-valued assets. Active management makes an investment company make adjustments as the situations change. This enables a company to continue operating and refinancing assets when the need arises.

New Residential started specializing in the assets with stable rates such as excess mortgage servicing rights whose value appreciate with changes in interests rates.New Investment Residential Corp. has changed for the better under the leadership of Michael Nierenberg.

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