Michael Nierenberg has utilized investment strategies which seek to generate strong risk-adjusted returns. To do this, he invests in assets that create steady long-term cash flows that use conservative capital structures. This is a bold strategy that has earned him not only titles, but also prestigious posts and positions. Mike Nierenberg mainly aims to generate returns throughout different interest environments. This, he has so far succeeded in doing and with these successes, come the need to ensure that everything done is left done with the perfection it deserves to avoid future blow-backs.
Michael Nierenberg has greatly changed the investment landscape by enabling people to investment in new products in the publicly listed Real Estate Investment Trust, New Residential Investment Corp which he leads.
Michael Nierenberg has been a pioneer in investing in Excess Mortgage Servicing Rights. This is the excess balance that remains after the mortgage servicer is paid its basic fee. Michael Nierenberg also invests in serving advances. Mike Nierenberg agrees to pay the mortgage originators defaulted mortgage payment in exchange for a fee and retains the mortgage payment when they are paid or the money paid from forfeiture.
In addition to all these, Michael Nierenberg invests in residential mortgage-backed securities and their associated call rights. New Residential buys various residential loans like non-performing, performing, reperforming and reverse mortgage loans.
Finally, Michael Nierenberg invests in consumer loans. New Residential with other investors purchased 30% equity of a consumer loan with an unpaid principal balance of US$4.2 billion for US$3billion from HSBC.
A man can be great and successful in many ways. Mike Nierenberg chose a slightly different path by doing something he feels in a way impacts on a lot of things especially in the world we’re leaving in. His investments have neither failed him nor been in vain.