The following is a summary of the PennyMac Mortgage Investment Trust (PMT) Q1 2024 Earnings Call Transcript:
Financial Performance:
PennyMac Mortgage Investment Trust reported Q1 net income of $37 million, leading to diluted earnings per share of $0.39.
PMT's annualized return on common equity was 10% and book value per share was $16.11.
The company provided stability in book value per share, mainly due to its diversified portfolio and hedging strategy.
In Q1, PMT sold $111 million of floating rate Government-Sponsored Enterprise Credit Risk Transfer (GSE CRT) bonds, realizing significant gains on these investments.
Business Progress:
PMT has projected robust financial performance that signals the strength of the fundamentals underlying its long-term mortgage assets and shows the firm's skill in managing mortgage-related investments in challenging environments.
During and after the quarter-end, the company issued more than $550 million and Credit Risk Transfer (CRT) term notes at attractive terms, refinancing similar notes with extended maturities and reduced spreads.
Majority of PMT shareholders' equity, over two-thirds, is currently invested in Mortgage Servicing Rights (MSRs) and GSE lender risk-share transactions, indicating favorable future asset performance.
With over half of PMT's deployed equity invested in MSR, stable cash flows over an extended period are anticipated.
More details: PennyMac Mortgage IR
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