For the quarter, we invested $283 million in cash to purchase excess MSRs non-agency RMBS. And then subsequent to quarter, we made our first investment in the senior housing sector.So investment activity, $220 million of the $283 that we invested was in excess mortgage servicing rights. Four different pools predominately the pools that we had agreed to purchase earlier in the year from Aurora. Aurora was the servicing operation of the bankrupt Lehman Brothers estate we committed to back in February. We had anticipated originally that transaction closing in May. It ended up closing close to the end of June. That was the big chunk of the un-invested capital. We expect the rate of return on this portfolio to be mid-teens, specifically 17.5%. We expect total cash flows from the portfolio to be about two times what we paid for it, $445 million and average life over the next six years.
Newcastle Investments's CEO Discusses Q2 2012 Results - Earnings Call Transcript
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.