This one won’t be long, but wanted to get it out given the “buzz” about a name I know fairly well, Rocket Companies (RKT).
Behind the wall are my thoughts on the name & whether or not it’s fairly valued or not given the recent write-up by some well known and sharp Substack/Fintwitters. I’ve written up the name at length. Subscribers have made money on the long side, on the short side, on the long side on Mr. Cooper, and also enjoyed a take-out by Rocket on Mr. Cooper. So yes, if you are looking to learn about the name and to quote David Byrne, this must be the place.
I also dug up a Deutsche Chart that lays out total mortgage volume outstanding at each 50bps coupon level which is crucial for figuring out what Rocket’s go forward mortgage production could look like if the GSE’s cap on MBS holdings is lifted and spreads compress.
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