LDI is not worth holding and is heading downwards, though bankruptcy fears are overblown: liquidity lasts through next year and asset/MSR/portfolio sales give sufficient capital with little loss. It is a cheap, rate-sensitive penny stock; today's 7% jump may reflect an expected agreement within ten days.

You can also see Lone Depot stock jumping by 7%. This stock is like a losing stock that is not worth holding. It is heading straight downwards. Most of those who hold this view are insanely bold , believing that we will not see three interest rate hikes, and that we will actually begin to see disruptions in the labor market over the next year or two, which will cause 10-year bond yields to fall continuously.

This will ultimately create a bottoming process for this type of mortgage investment.

LDI is facing serious concerns about bankruptcy. But I believe they have enough liquidity to get through next year, and they have just entered into another agreement to sell and liquidate some of their balance sheet assets, and to sell some of their mortgage service rights (MSRs), as well as part of their portfolio.

This gives them sufficient capital. They don't actually lose much money. I know this sounds crazy.

But this stock is practically considered a penny stock (a very cheap stock). It is a cheap investment and sensitive to interest rates. I believe one of the reasons for his move today is the expectation that we may be close to reaching an agreement within the next ten days. So this might be an interesting engine.