Part 1 of this article compares Rithm Capital's recent investment composition, leverage, hedging coverage ratio, quarterly BV, economic return (loss), and current valuation to 17 mREIT peers. Due to what has occurred during Q1 2026 (fluctuating rates/yields), understanding the composition of RITM's MSR/investment and derivatives portfolio is crucial in understanding current/future performance. My current RITM BV projection and updated price target is in the “Conclusions Drawn” section. RITM is currently deemed notably undervalued (strong buy recommendation).