Remove Collateral Remove Funds Remove Leveraging
article thumbnail

Rocket Companies (RKT) Q3 2024 Earnings Call Transcript

The Motley Fool

There's no additional acquisition costs for clients in our ecosystem, creating even more operating leverage. This process can often be delayed at the collateral underwriter review stage where workloads are already substantial. The ability to leverage technology is crucial to scale, drive profitable growth, and adapt to market shifts.

Companies 241
article thumbnail

PE rethinks NAV loans as investors push back

Private Equity Wire

Buyout firms have long relied on controversial loans backed by equity stakes to enhance fund returns, but growing investor criticism has triggered a slowdown, according to a report by Bloomberg UK. This shift partly reflects a rebalancing of power, enabling LPs in private equity funds, such as pension funds to exert influence over GPs.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

These 3 Dividend Stocks Yield Investors 9.6% or More. Here's Which 1 I'd Buy First.

The Motley Fool

Riley Financial (NASDAQ: RILY) , Blackstone Secured Lending Fund (NYSE: BXSL) , and Ares Capital (NASDAQ: ARCC). Blackstone Secured Lending Fund invests in underserved companies and sports a 11.2% BDCs like the Blackstone Secured Lending Fund invest in middle-market companies that banks have neglected to invest in over recent decades.

article thumbnail

Annaly Capital Management's Total Return Won't Pay the Bills

The Motley Fool

Its revenue comes from the interest it collects on these bond-like securities, often called something like a collateralized mortgage obligation. For starters, that's more like a mutual fund model than a typical REIT model, given that there are no operating assets involved. Image source: Getty Images.

Returns 246
article thumbnail

A Bull Market Could Be Here: AGNC Investment Isn't the Bargain You Think

The Motley Fool

Mortgage REITs buy mortgages that have been cobbled together into bond-like securities, often called collateralized mortgage obligations (CMO). To complicate things, mortgage REITs generally use leverage, often backed by the value of the CMOs it owns, in an attempt to enhance returns. Image source: Getty Images. A lot can go wrong.

article thumbnail

AGNC Investment: Buy, Sell, or Hold?

The Motley Fool

And such REITs often employ leverage, usually using their loan portfolio as collateral, to enhance returns. In some ways, a mortgage REIT is more like a mutual fund than a company. That list might include pension funds, endowments, and insurance companies. And they are certainly nothing like a landlord.

article thumbnail

The Open Secret That Is AGNC Investment's Achilles' Heel

The Motley Fool

In this way, AGNC is more like a bond fund than a traditional REIT. The big open secret here is that AGNC, like other mortgage REITs , makes liberal use of leverage in an effort to enhance shareholder returns. For starters, pledging basically means the company is using its mortgage bond portfolio as collateral for loans.