New Residential Investment Corp. (NRZ) Q1 2022 Earnings Conference Call May 3, 2022 8:00 AM ET

Company Participants

Bohe Yu - Investor Relations

Michael Nierenberg - Chairman, Chief Executive Officer and President

Nick Santoro - Chief Financial Officer

Baron Silverstein - President, NewRez/Caliber

Conference Call Participants

Bose George - KBW

Kevin Barker - Piper Sandler

Eric Hagen - BTIG

Doug Harter - Credit Suisse

Stephen Laws - Raymond James

Giuliano Bologna - Compass Point

Trevor Cranston - JMP Securities

Courtney Bahlman - Barclays

Operator

Good morning and welcome to the New Residential First Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Bohe Yu [ph]. Please go ahead.

Bohe Yu

Thank you and good morning, everyone. I’d like to thank you for joining us for New Residential’s first quarter 2022 earnings call. With me today are Michael Nierenberg, Chairman, CEO and President of New Residential; Nick Santoro, Chief Financial Officer; and also Baron Silverstein, President of NewRez and Caliber.

Throughout the call, we are going to reference the earnings supplement that was posted to the New Residential website this morning. If you have not already done so, I’d encourage you to download the presentation now. I’d like to point out that certain statements today will be forward-looking statements. These statements by their nature are uncertain and may differ materially from actual results. I encourage you to review the disclaimers in our press release and earnings supplement regarding forward-looking statements and review the risk factors contained in our annual and quarterly reports filed with the SEC.

In addition, we will be discussing some non-GAAP financial measures during today’s call. Reconciliations of these measures to the most directly comparable GAAP measures can also be found in our earnings supplement.

And with that, I will turn the call over to Michael.

Michael Nierenberg

Thanks, Bohe. Good morning, everyone. Thanks for joining us. As we all know, there is lots of pain and suffering in the world. As we think about everyone who is in need of help or a payer, we send out our warm wishes and hope for healing and then end to the war as soon as possible.

Now on to business, despite the volatility in the markets, our company had a very good quarter. As we have mentioned during prior calls, we have positioned our company for a higher rate environment, taking all the necessary actions to protect our portfolios and operating companies from rising interest rates. During the quarter, our book value increased to $12.56. Currently, our book value sits at approximately $13.50. We have interest rate hedges in place, which protect our long duration assets, along with our MSR portfolio, which should only help to increase our book value as we go forward based on expected Fed actions. We have increased our cash and liquidity levels to $1.7 billion. We will be patient as we look for opportunistic investments across the financial services sector. We believe patience will be rewarded in these markets and the first quarter was a great example of our diversified business.