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

2024-06-20 08:00:00 ET

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.

Introduction

PennyMac Mortgage Investment Trust ( 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 the yields between the three are practically equal, and subject to swings on a day-to-day basis, the C Series preferred shares ( PMT.PR.C ) are currently trading at the lowest cost per share, and are my preferred investment....

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