PennyMac Mortgage Investment Trust: C Series Preferred Offers 8.8% Yield

Jeremy LaKosh
5.54K Followers

Summary

  • PennyMac Mortgage Investment Trust offers three preferred shares with practically equal yields.
  • PennyMac saw declines in profitability due to higher interest rates affecting net interest income, but generated $163 million in servicing revenues.
  • PennyMac's shift towards mortgage servicing stabilizes operations, making preferred shares more attractive, but liquidity and regulatory risks should be considered.
Future Of The Penny In Doubt

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Introduction

PennyMac Mortgage Investment Trust (NYSE:PMT) is a real estate investment trust that invests primarily in mortgages, also referred to as an mREIT. While the company offers an 11.5% dividend yield on its common shares, the company also offers three separate preferred shares. While

This article was written by

5.54K Followers
About My Writing: I am currently focused on income investing through either common shares, preferred shares, or bonds.  I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publication on Monday and Tuesday.About My Background: Bachelors in history/political science, Masters in Business Administration with a specialization in Finance and Economics. I enjoy numbers. I have been investing since 2000. Professionally, I am the CEO of an independent living retirement community in Illinois.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PMT.PR.C either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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