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PennyMac Mortgage Investment Trust (PMT)

  • Oct. 8, 2013, 12:09 PM
    • Total economic return for mREITs (REM -0.9%) should be positive over the next year, says Credit Suisse, with hybrid/non-agency names faring better than their agency MBS cousins thanks to an expected continued rise in long-term interest rates.
    • The team continues to favor two names with less interest rate risk - Two Harbors (TWO -0.8%) and Ellington Financial (EFC -0.4%), as well as those lumped in with mREITs but not really so - Newcastle Investment (NCT -1%), New Residential (NRZ -0.6%), and PennyMac Mortgage (PMT -1.4%).
    • Management willingness to buy back shares trading below book value coupled with an ability to protect book value will be the "differentiator of valuation within the group," says Credit Suisse, noting the aggressive repurchases of Gary Kain's AGNC and MTGE.
    • Related ETFs: MORT, MORL.
  • Sep. 18, 2013, 9:16 AM
    • Newcastle Investment (NCT) spinoff New Residential (NRZ) soars 6.9% premarket after declaring its first full quarterly dividend of $0.175 per share for a 10.95% yield (based on last night's close).
    • Nearly 11% is a whopper of a yield considering peers like Redwood (RWT), HLSS, and Pennymac (PMT) are in the 5-10% range.
  • Sep. 11, 2013, 9:49 AM
    • Presenting at Barclays (presentation slides), PennyMac Mortgage Investment Trust (PMT +0.8%) reminds its distressed loan business is unaffected by higher rates and the mortgage slowdown. Distressed whole loans purchased thus far in Q3 are $929M vs. quarterly levels around $300M-$400M for the last year.
    • Correspondent lending is sluggish, with the company looking to take market share to make up for declining margins. Likewise, the slowdown in refinance activity has adversely affected the jumbo loan market.
    | Comment!
  • Aug. 21, 2013, 12:05 PM
    • The big picture view says better entry points are coming soon - perhaps after the taper actually begins (September?) and a new Fed chief is announced (October?).
    • The team's favorite names are those associated with the sector that really aren't mREITs, but instead have more-specialized business models: Newcastle Investment (NCT +0.5%), its spinoff New Residential (NRZ +1.8%), and PennyMac Mortgage Investment Trust (PMT -0.1%).
    • In the security-focused names, top picks are Two Harbors (TWO -0.8%) and Ellington Financial (EFC +0.1%), and American Capital Mortgage (MTGE).
    • Thus far in Q3, CS sees sector book values off 4% amid a 40 bp increase in rates. The good news is credit spreads haven't continued to widen, but a coming taper announcement could blow them out again.
    • Sector ETFs: REM, MORT, MORL.
    • Earlier: Two Harbors gets an upgrade.
  • Aug. 14, 2013, 9:02 AM
    • PennyMac Mortgage (PMT) prices its 11.3M share secondary presumably in the area of $22.20 each - the level shares are now trading in the premarket. That's off 4.1% from last night's close.
    • Press release.
  • Aug. 13, 2013, 4:09 PM
    • PennyMac Mortgage Investment Trust (PMT) announces a 11.3M share secondary with greenshoe option of 1.695M. If the greenshoe is exercised, it would add 22% to the float.
    • Shares -2.8% AH.
    • Source: Press release.
  • Aug. 8, 2013, 10:06 AM
    • Net investment income of $129.7M up 9% from Q1. Gain on investment portfolio of $46.8M off 27%.
    • Book value per share of $21.06 up 1.6% from Q1.
    • Correspondent business: Revenue of $58.5M up 42% from Q1. Distressed mortgage investments unrealized gain of $46.8M down from $64M.
    • Servicing portfolio of $19.9B UPB, up from $16.6B. Net servicing fees of $7.9M up from $6.6M.
    • Investor presentation. Q2 results.
    • PMT +3.1%.
    | Comment!
  • Aug. 8, 2013, 8:49 AM
    • PennyMac Mortgage (PMT): Q2 EPS of $0.86 beats by $0.09. (PR)
    | Comment!
  • Aug. 8, 2013, 12:05 AM
  • Aug. 7, 2013, 5:30 PM
  • Jul. 16, 2013, 11:02 AM
    Two Harbors (TWO +0.1%) tops Credit Suisse's list of mREITs (REM) to own given the new rate environment - considerably more favorable now that the yield curve has steepened. Hybrids in general offer better risk/reward than agency-only names, says CS, which also likes Ellington Financial (EFC is a partnership, not a REIT, but EARN is a REIT and is run by the same team). The analysts also like the specialized business models at Newcastle (NCT), New Residential (NRZ), and PennyMac (PMT).
    | 1 Comment
  • Jul. 9, 2013, 11:06 AM
    More on the Citi mREIT note (previous): The team is more constructive on the credit-sensitive players, reiterating a Buy on PennyMac (PMT) and believing commercial mortgage REITs like Starwood (STWD) and Blackstone Mortgage (BXMT) have been treated too harshly. Hybrids (IVR, TWO, MFA, DX, WMC, JMI come to mind) are likely to find the negative impact of their agency holdings offsetting any benefit from their nonagency paper.
  • Jul. 5, 2013, 1:33 PM
    The smart money begins to make a distinction between the mREITs and servicers or specialty mortgage investors like Ocwen (OCN +1.5%), New Residential (NRZ +3.7%), and Newcastle (NCT +1.4%). All opened to the downside but have turned higher since. To the extent they own servicing or credit-sensitive assets, one could make the argument they all benefit from higher rates. Others to keep an eye on: NSM, SFI, PMT, NRF.
  • Jun. 28, 2013, 11:28 AM
    More on Jefferies' coverage in the mortgage sector (previous); PennyMac Mortgage (PMT -0.5%) is initiated a Buy, analyst Daniel Furtado noting the company shouldn't be lumped in with mREITs (REM, MORT) as it's less a levered owner of MBS and more an issuer of the paper. "This key differentiating factor will lead to higher valuation and better investment returns over the long term."
  • Jun. 26, 2013, 11:26 AM
    One trader takes advantage of the selloff in mortgage REITs (REM, MORT) to pick up 3 names - not mREITs, but brought down simply by association. New Residential (NRZ) - recently spun off from Newcastle (NCT) - has a large portfolio of mortgage servicing rights which actually increases in value as interest rates rise. PennyMac Mortgage (PMT) has a large distressed loan business already with hidden value and that should benefit as the economy improves. NorthStar Realty (NRF) is a "hodge-podge" of commercial lending businesses which could benefit from spinoffs and/or clarification of how certain units make money.
  • Jun. 18, 2013, 10:15 AM
    PennyMac Mortgage Investment Trust (PMT -1.1%) is downgraded to Sell at Ladenburg Thalmann. The move stands in contrast with Compass Point's Buy recommendation from last week in which Kevin Barker argued the housing recovery should allow continued gains from PMT's distressed loan portfolio and the stock trades at a meaningful discount to its mREIT peers.
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Company Description
Pennymac Mortgage Investment Trust is a real estate investment trust investing in residential mortgage loans and mortgage-related assets.
Sector: Financial
Country: United States