Master Of The Mortgage Market

Michael Nierenberg worked for Bear Stearns for 14 years. Some of the titles he held were head of interest rate trading operations as well as being the co-head of structured products. He was also involved with mortgage backed securities trading and also served on the board during his time with Bear Stearns. Prior to his time at Bears Stearns, he was with the now-defunct Lehman Brothers.

During this time, he successfully guided his professional career through the crippling mortgage crisis of 2007. Navigating those waters was indeed challenging, yet he found solutions and a way to move on and now he is CEO of New Residential Investment (NRI). Mr. Nierenberg likely earned the equivalent of his PhD in mortgage-backed securities during the crisis, and now he runs a REIT based on opportunistic deals in residential real estate.

This could well represent the next junk bond market. NRI is also involved with the non agency mortgage backed securities market (RMBS), which ballooned from a $600 billion market in 2003 to over $2 trillion at its peak in 07. RMBS mortgages are privately held and not backed by the US government, or any of its entities, because the borrowers could not meet the standards, so there is credit risk. Just like with junk bonds, where there is credit risk, there is money to be made. Click here.