How will Newcastle's (NCT) spinoff of New Residential (ticker: NRZ) unlock value (presentation)? Newcastle's stock yielded an average 12% in 2012, while peers with comparable portfolios to NRZ yield about 7%. Those with portfolios close to the new Newcastle also have far lower yields. It's yahtzee for NCT and NRZ owners should these yields converge. The spinoff is expected by the end of Q1.