Group 1 - KBRA has assigned preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM1, a $502.1 million non-prime RMBS transaction sponsored by Rithm Capital Corp [1] - The underlying mortgages in the pool were primarily originated by NewRez LLC (52.6%) and Caliber Home Loans Inc, LLC (27.4%), with all loans serviced by NewRez LLC [1] - NRMLT 2026-NQM1 is collateralized by a pool of 1,014 residential mortgages, with 31.7% originally securitized in NRMLT 2022-NQM5, which has been called [2] Group 2 - Borrowers in NRMLT 2026-NQM1 have a weighted average original credit score of 758, a weighted average original loan-to-value (LTV) of 72.2%, and a weighted average combined LTV (CLTV) of 72.2% [2] - The loans are seasoned approximately 15 months, with 31.7% of the pool seasoned over 2 years [2] Group 3 - KBRA's rating approach included loan-level analysis through its Residential Asset Loss Model (REALM), third-party loan file due diligence, cash flow modeling analysis, and reviews of key transaction parties [3] - The assessment also involved an evaluation of the transaction's legal structure and documentation [3]

Core Insights - The article highlights five stocks that are considered strong options for generating passive income, suggesting that investing $50,000 in each could yield over $20,600 by 2026 [1] Group 1: Ares Capital - Ares Capital is the largest publicly traded business development company (BDC) with a portfolio worth $28.7 billion invested in 587 companies across 35 industries, showcasing significant diversification compared to peers [3] - The current market cap of Ares Capital is $15 billion, with a current price of $20.72 and a dividend yield of 9.26%, which is expected to generate nearly $4,700 in passive income from a $50,000 investment [4][5] Group 2: Energy Transfer LP - Energy Transfer LP is a leading midstream energy company operating pipelines for natural gas, NGLs, crude oil, and refined products across the U.S., with a distribution yield of around 8% [6] - A $50,000 investment in Energy Transfer is projected to yield over $4,000 in passive income, supported by the company's strong financial position [6] Group 3: MPLX LP - MPLX LP is a major player in the North American midstream market, with over 10% of U.S. natural gas flowing through its pipelines [7] - The company offers a distribution yield of approximately 8%, and a $50,000 investment is expected to generate around $4,000 in passive income, with a history of increasing distributions by 12.5% in the last two years [9] Group 4: Rithm Capital - Rithm Capital is a real estate investment trust (REIT) involved in various aspects of the real estate sector, including property ownership and mortgage servicing [10] - The forward dividend yield exceeds 9.1%, and a $50,000 investment could produce more than $4,500 in passive income [11] Group 5: Verizon Communications - Verizon Communications is a well-known telecommunications company providing wireless services globally [12] - The company has a market cap of $170 billion, a dividend yield of 6.77%, and a history of increasing dividends for 19 consecutive years, with a $50,000 investment expected to yield over $3,400 in passive income [13]

Core Viewpoint - Rithm Capital Corp. (NYSE:RITM) is identified as a promising investment opportunity, particularly after its recent acquisition of Paramount Group, Inc., which enhances its asset management capabilities and commercial real estate presence [2][3]. Group 1: Acquisition Details - Rithm Capital Corp. successfully completed the acquisition of Paramount Group, Inc. on December 19, which includes 13 owned and 4 managed office assets totaling over 13.1 million square feet [2]. - The acquisition is expected to significantly bolster Rithm's fully integrated and diversified asset management platform, allowing for further development of the portfolio [3]. - Paramount Group will be integrated into Rithm's platform and rebranded to capitalize on new opportunities across the portfolio [4]. Group 2: Company Operations - Rithm Capital Corp. operates in various segments, including Origination and Servicing, Investment Portfolio, Residential Transitional Lending, Asset Management, and Corporate [5]. Group 3: Analyst Ratings - Piper Sandler analyst Crispin Love has reaffirmed a bullish stance on Rithm Capital Corp., assigning a Buy rating with a price target of $15.50 [1].

Core Viewpoint - Rithm (RITM) is experiencing a decline in stock price and is expected to report lower earnings and revenue in the upcoming earnings release [1][2]. Group 1: Stock Performance - Rithm's stock closed at $10.90, reflecting a -1.54% change from the previous day's closing price, which is worse than the S&P 500's daily loss of 0.74% [1]. - Prior to the recent trading session, Rithm's shares had decreased by 2.29%, underperforming compared to the Finance sector's gain of 2.1% and the S&P 500's gain of 0.79% [1]. Group 2: Earnings Expectations - Rithm is anticipated to report an EPS of $0.54, which represents a 10% decrease from the same quarter last year [2]. - The consensus estimate for Rithm's revenue is $1.37 billion, indicating a significant decline of 34.89% from the prior-year quarter [2]. - For the full year, analysts expect earnings of $2.14 per share and revenue of $4.46 billion, reflecting changes of +1.9% and -14.84%, respectively, from the previous year [3]. Group 3: Analyst Forecasts and Valuation - Recent revisions to analyst forecasts for Rithm are important as they may indicate changes in near-term business trends, with positive revisions suggesting optimism about the business outlook [4]. - The Zacks Rank system, which evaluates estimate changes, currently ranks Rithm at 3 (Hold), with a consensus EPS projection that has decreased by 1.61% in the past 30 days [6]. - Rithm has a Forward P/E ratio of 5.18, which is a discount compared to the industry average Forward P/E of 12.09 [6]. Group 4: Industry Context - Rithm operates within the Financial - Miscellaneous Services industry, which is part of the Finance sector and currently holds a Zacks Industry Rank of 96, placing it in the top 39% of over 250 industries [7].

Core Insights - The article provides a detailed analysis comparing Rithm Capital Corp. (RITM) to 17 other mortgage real estate investment trusts (mREITs) to address ongoing requests for such comparisons [1][2] - The analysis is divided into two parts, with Part 1 focusing on RITM's recent results and metrics, while Part 2 emphasizes dividend rates, yield percentages, and sustainability metrics [2][3] Group 1: RITM's Financial Metrics - RITM's book value as of September 30, 2025, is compared to its 17 mREIT peers, providing insights into its financial standing [2] - RITM declared a dividend of $0.25 per common share for Q3 2025, maintaining the same rate as the previous quarter, resulting in a trailing twelve-month (TTM) dividend yield of 8.26% [16][27] - The annual forward yield based on RITM's stock price as of September 19, 2025, is also 8.26%, while the yield based on the company's book value is 7.79% [16] Group 2: Dividend Sustainability Analysis - The article discusses RITM's dividend sustainability, indicating a very high probability (90%) of maintaining a dividend between $0.25 and $0.30 per share for Q1 and Q2 2026 [29] - RITM's quarterly core earnings available to common shareholders for Q3 2025 were reported at $296.9 million, translating to a core earnings per share of $0.54, which is above the dividend rate [23][21] - The dividend distribution payout ratios for RITM have been attractive, with ratios of 48%, 46%, and 47% for Q1, Q2, and Q3 2025, respectively [23] Group 3: Comparative Analysis with Peers - RITM's TTM dividend yield and annual forward yield percentages are notably below average when compared to its peer PMT, indicating a lower risk profile [16][27] - The article emphasizes that RITM has maintained a consistent dividend history, increasing its dividend from $0.35 in Q3 2014 to $0.25 since Q3 2021, contrasting with many peers that have reduced dividends [15][13] - The analysis includes a comparison of RITM's leverage ratio, which is lower than that of PMT, suggesting a more conservative approach to risk management [17] Group 4: Future Projections and Recommendations - The projected adjusted core earnings for Q4 2025 are expected to improve compared to Q3 2025, indicating a positive outlook for RITM's financial performance [30] - The current price target for RITM is approximately $14.60 per share, with recommendations varying from SELL at a premium to BUY at a discount to the projected book value [34][32] - The article concludes that RITM is currently undervalued, with a strong buy recommendation based on its financial metrics and market conditions [33]

Core Insights - The article provides a detailed analysis comparing Rithm Capital Corp. (RITM) to 17 other mortgage real estate investment trusts (mREITs) [1] - The analysis is divided into two parts, with Part 1 focusing on RITM's recent results and metrics compared to peers, while Part 2 emphasizes dividend rates, yield percentages, and sustainability metrics [2][3] Part 1 Summary - RITM's book value as of September 30, 2025, is compared to 17 mREIT peers, aiding in understanding the company's financial standing [2] - The analysis aims to provide insights into RITM's performance relative to its peers, particularly in terms of dividend sustainability [4] Part 2 Summary - Part 2 focuses on RITM's dividend per share rates, yield percentages, and sustainability metrics compared to 17 mREIT peers [3] - RITM's dividend history shows an increase from $0.35 per share in Q3 2014 to $0.50 by Q4 2019, followed by a cautious reduction to $0.05 during Q1 2020 due to the COVID-19 pandemic [13][15] - RITM's dividend was increased to $0.10, $0.15, and $0.20 in 2020, and it has remained at $0.25 since Q3 2021, contrasting with many peers that reduced dividends [15] Dividend Analysis - RITM declared a dividend of $0.25 per share for Q4 2025, with a TTM dividend yield of 8.95% and an annual forward yield of 7.55% based on projected current book value [27][28] - The company has maintained a consistent dividend payout ratio, with figures indicating a very attractive ratio throughout 2023 and 2024 [21][22] - RITM's core earnings available for distribution (EAD) for Q1 to Q4 2023 were notably above the dividend rate, indicating strong earnings power [21] Future Projections - RITM is projected to have a very high probability (90%) of maintaining a dividend between $0.25 and $0.30 per share for Q1 and Q2 2026 [29] - The company is expected to see an improvement in adjusted core earnings/EAD in Q4 2025 compared to Q3 2025, despite a slight decrease anticipated in Q1 2026 [30] Investment Recommendation - The current recommendation for RITM is a "STRONG BUY" based on its undervalued stock price relative to projected current book value [33][34] - The price target for RITM is approximately $14.60 per share, with specific ranges for buy, hold, and sell recommendations based on stock price movements [34][35]

Group 1 - The article emphasizes the importance of combining investment consulting with active intraday trading to maximize returns through a deep understanding of economics and investment analysis [1] - The goal is to identify profitable and undervalued investment opportunities primarily in the U.S. market to create a high-yield, balanced portfolio [1] - The author highlights the significance of practical experience in management and trading, beyond academic qualifications in Finance and Economics [1] Group 2 - The article does not provide any specific company or industry analysis, focusing instead on the author's investment philosophy and approach [2][3]

Core Viewpoint - KBRA has assigned preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2025-NQM7, a $493.7 million non-prime RMBS transaction sponsored by Rithm Capital Corp [1]. Group 1: Transaction Overview - NRMLT 2025-NQM7 is backed by a pool of 915 residential mortgages, with borrowers having a weighted average (WA) original credit score of 757 and a WA original loan-to-value (LTV) of 72.2% [2]. - The loans in this pool are primarily fixed-rate mortgages (99.3%) and have been seasoned for approximately four months, with about 10.6% of the pool featuring an initial interest-only period [2]. Group 2: Rating Methodology - KBRA's rating approach involved a loan-level analysis using its Residential Asset Loss Model (REALM), third-party loan file due diligence, cash flow modeling of the transaction's payment structure, and reviews of key transaction parties [3].

Core Insights - The article focuses on analyzing Rithm Capital Corp.'s (RITM) recent performance metrics in comparison to 17 mortgage real estate investment trust (mREIT) peers, highlighting investment composition, leverage, hedging coverage, and economic returns [1][3][54] Investment Composition and Portfolio Overview - As of September 30, 2025, RITM's investment portfolio consisted of 21% fixed-rate agency MBS, 0% variable-rate agency MBS, 32% mortgage servicing rights (MSR), and 47% non-agency MBS and other mortgage-related investments [19][28] - RITM's diverse investment strategy includes subsidiaries like Newrez, SCU, Crestline, and RPT, which contribute to a broad range of financial investments [28][39] Leverage and Hedging Coverage - RITM's on-balance sheet leverage ratio was 2.4x, with an at-risk leverage ratio of 1.0x as of September 30, 2025, indicating a slight decrease in on-balance sheet leverage and a slight increase in at-risk leverage compared to the previous quarter [20][21] - The hedging coverage ratio for RITM decreased to 58% as of September 30, 2025, reflecting the company's strategy to prepare for lower mortgage interest rates [51] Economic Returns and Valuation - RITM reported a book value (BV) of $12.83 per share at the end of Q3 2025, representing a quarterly increase of 0.94% and an economic return of 2.91% for the same period [22][23] - The trailing 24-month economic return for RITM was 20.37%, ranking it as the 4th best performer among the analyzed mREIT peers, significantly outperforming the average returns of other mREIT categories [55] Comparative Analysis with Peers - RITM's economic return and leverage metrics indicate it operates with lower average leverage compared to its closest peer, PMT, and the broader mREIT sector, which helps mitigate book value volatility [56] - The stock price of RITM was trading at a 13.44% discount to the estimated current BV as of December 5, 2025, suggesting potential undervaluation [52][53]

Core Insights - Rithm Capital (RITM) has announced two new acquisitions in the third quarter, indicating a strategy of continual expansion and diversification that is expected to last until 2026 [1] Company Developments - The company is focused on building out its third-party services, which suggests a strategic shift towards enhancing its operational capabilities and market presence [1]