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Rithm Capital
Rithm Capital

-7.11%

Real estate / REIT

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Risks

1. Interest Rate Risk: New Residential Investment Corp. (NRZ) is exposed to carrying the risk of changing interest rates and how that can affect their investment portfolio. NRZ may have to reprice or write down its investments if rates move drastically.


2. Credit Risk: NRZ's credit risk arises from investments in mortgage-related and mortgage-servicing assets. It could also arise from holding debt investments in non-investment grade issuers. In the event of default, NRZ could lose a portion or all of its investment.


3. Leverage Risk: NRZ has been using leverage to finance its investments, which presents a potential risk. If NRZ is unable to manage its debt and/or its investments perform poorly, it could cause a deterioration in NRZ's financial condition.


4. Regulatory Risk: NRZ is subject to numerous regulations and guidelines that could limit its ability to operate its business or could require it to change how it does business. If NRZ does not comply with these regulations, it could result in fines or other penalties, which could adversely affect its financial condition.


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