Seeking Alpha

Remember those toxic CDOs? They're finally starting to turn a profit, but banks - desperate to...

Remember those toxic CDOs? They're finally starting to turn a profit, but banks - desperate to free up capital - are trying to unload them. Even banks on firm footing are sellers as they can't justify the large amount of capital needed to hold against them when shareholders are angling for buybacks and dividends. Can a CDO manager like Newcastle (NCT) benefit from the fire sale?
Comments (8)
  • I am betting (or hoping) on it.
    22 Feb 2013, 01:33 PM Reply Like
  • Good management, which NCT has proven they have, will manage this opportunity successfully.
    22 Feb 2013, 01:36 PM Reply Like
  • Isn't this what the government wants? Take the systematic risk off of the too big to fail banks and distribute it to the private sector?
    22 Feb 2013, 04:31 PM Reply Like
  • What other good companies similar to NCT are in the CDO biz?
    22 Feb 2013, 04:37 PM Reply Like
  • NRF. CEO came from Goldman. Has strong relationships in the business.
    22 Feb 2013, 04:50 PM Reply Like
  • (NRF) vs. (NCT)
    http://yhoo.it/Xv03QI

     

    Not quite the same business, but check out (NSM).
    22 Feb 2013, 06:15 PM Reply Like
  • I actually own shares of both NCT and NRF. I own quite a bit more of NRF as their growing management fees from their non-traded REITs should help provided more stability to their earnings. NCT is especially appealing as a speculation that their Spin-off will create additional value as these type of transactions so ofter do. Also several large insider buys indicate the insiders think there is considerable more value here.
    23 Feb 2013, 07:12 AM Reply Like
  • Great quick post!
    24 Feb 2013, 04:37 PM Reply Like
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