Pennymac Mortgage Investment Trust · NYSE:PMT
Pennymac Mortgage Investment Trust — 2019 Barclays Global Financial Services Conference
12 slides from Pennymac Mortgage Investment Trust's conference presentation, Sep 9, 2019
Slide 1: PennyMac Mortgage Investment Trust – Barclays Global Financial Services Conference
PennyMac Mortgage Investment Trust September 10, 2019 Barclays Global Financial Services Conference Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections and assumptions with respect to, among other things, the Company’s financial r
Slide 3: PMT Is a Mortgage REIT with Unique Investment Strategies
PMT Is a Mortgage REIT with Unique Investment Strategies (1) PennyMac Financial Services, Inc. (NYSE: PFSI) (2) Source: Bloomberg, represents dividends and reinvestment of those dividends; as of August 31, 2019 (3) Pro forma to include the value of a 9.2 million share common equity issuance which se
Slide 4: We Have Successfully Transformed PMT
We Have Successfully Transformed PMT PMT’s Equity Allocation at June 30, 2016 100% = $1.4 billion Credit Sensitive Strategies (61%) Interest Rate Sensitive Strategies (27%) PMT’s Equity Allocation at June 30, 2019 100% = $1.9 billion Transition to organically-generated investments in CRT and MSRs ha
Slide 5: Unique Capabilities Drive Organic Investment Growth
2019 Barclays Global Financial Services Conference Unique Capabilities Drive Organic Investment Growth GSE Credit Risk Transfer Investments MSR Investments MSRs represent the right to service mortgage loans; earns servicing and ancillary fees Owned as part of a comprehensive set of interest rate str
Slide 6: PMT Is a Leading Producer of Conventional Conforming Mortgages
PMT Is a Leading Producer of Conventional Conforming Mortgages PMT’s Conventional Correspondent Production ($ in billions) Top Correspondent Producers(2) 5th largest producer of conventional conforming mortgages in the U.S.(2) Record volume in year-to-date 2019 Approximately 55% of the total corresp
Slide 7: GSE CRT Investments Continue to Grow and Perform Well
GSE CRT Investments Continue to Grow and Perform Well CRT investments totaled over $2.5 billion at June 30th, driven by strong production growth Fannie Mae’s transition to a REMIC(2) structure has resulted in a greater percentage of PMT’s production being eligible for CRT (>80%) CRT investments are
Slide 8: Return Contribution of the GSE Credit Risk Transfer Investments
Return Contribution of the GSE Credit Risk Transfer Investments Annualized Return on Average CRT Equity Average CRT equity(1) ($ in millions) $403 $452 $490 $446 (1) Equity allocated represents management’s internal allocation across segments and investment strategies $452 $476 2019 Barclays Global
Slide 9: Interest Rate Sensitive Strategies Designed to Mitigate Interest Rate Volatility
Interest Rate Sensitive Strategies Designed to Mitigate Interest Rate Volatility 2019 Barclays Global Financial Services Conference Gain in value with increasing rates Gain in value with decreasing rates MSRs ESS Agency MBS Interest Rate Hedges Estimated Sensitivity to Changes in Interest Rates at 6
Slide 10: Capital Is Being Deployed in New Investments
Capital Is Being Deployed in New Investments (1) The fair value of CRT investments is reflected on the balance sheet as deposits securing CRT arrangements, firm commitments to purchase CRT securities and derivative and credit risk transfer strip assets, net of the interest-only security payable. Pre
Slide 11: Trends in PMT's Dividends and Earnings per Common Share
Trends in PMT’s Dividends and Earnings per Common Share 2019 Barclays Global Financial Services Conference
Slide 12: Potential Changes in Housing Finance and Implication for PMT
2 Potential Changes in Housing Finance and Implication for PMT 2019 Barclays Global Financial Services Conference Treasury released plans for housing finance reform Seeks to end conservatorship of the GSEs and minimize taxpayer risk Seeks to facilitate competition in the housing finance market Outli
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