PennyMac Mortgage Investment Trust Q2 net investment income rises amid portfolio shift
PMT•Outlook
- Company expects realignment of balance sheet to bolster return profile over the long term
- PennyMac is shifting equity allocation toward private label securitizations and non-Agency credit investments
- Company sees lower loan prepayment expectations due to higher interest rates impacting servicing fees
Overview
- U.S. mortgage REIT's Q2 net investment income rose 4% yr/yr to $73 mln
- Q2 net income attributable to common shareholders was $20 mln, diluted EPS $0.23
Result drivers
- Portfolio shift - Co increased investments in non-Agency subordinate bonds via private label securitizations, while reducing Agency MSR exposure and stopping Agency-eligible loan acquisitions
- Segment income mixed - Credit sensitive strategies segment income declined due to lower valuation gains, while interest rate sensitive strategies saw higher MBS portfolio value but a sharp drop in net loan servicing fees
Analyst coverage
- The current average analyst rating on the shares is and the breakdown of recommendations is 1 or , 8 and no or
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