hopefully, maybe some institutional money manager figured out that NRZ isn't your typical residential mortgage reit that stacks RMBS using repo financing. Whereas most mreits like NLY will get hammered by rising interest rates, NRZ owns a portfolio of MSRs that will become very valuable if mortgage rates rise, because the CPR will drop dramatically. NRZ's dividend yield and stock valuation metrics show it is being valued like any other residential agency mortgage reit, when in fact it has a completely different (and better) risk profile. I have long felt that NRZ is way undervalued based on its free cash flow and the fact it has an embedded call option on rising long-term interest rates.
Sentiment: Strong Buy
Apparently Erbey has been talking about Ocwen entities and msr's. I haven't had time to review his comments but you might want to check them out at the HLSS website or press releases.
Upcomming dividend? Positive press from Seeking Alpha, as well as analyst's? Maybe short covering from the news that NationStar sold off part of its mortgage business and will focus on acquiring existing mortgages as opposed to underwritting new ones? Maybe someone finally woke up and realized that NRZ's residential loans at 50 cents on the dollar means big upside?
Last time it sold off, the10 year rallied. When rates rise it becomes very attractive because it is a pure play on mortgage prepayments. In other words, as rates rise, prepayments slow and servicing rights increase in value. Smart money knows this and moves in and out accordingly.