Pennymac Mortgage Investment Trust · NYSE:PMT
Pennymac Mortgage Investment Trust — 2015 Barclays Global Financial Services Conference
13 slides from Pennymac Mortgage Investment Trust's conference presentation, Sep 17, 2015
Slide 1: PennyMac Mortgage Investment Trust
PennyMac Mortgage Investment Trust September 17, 2015 2015 Barclays Global Financial Services Conference
Slide 2: Forward-looking statements
2015 Barclays Global Financial Services Conference 2 This presentation contains forward - looking statements within the meaning of Section 21 E of the Securities Exchange Act of 1934 , as amended, regarding management’s beliefs, estimates, projections and assumptions with respect to, among other thi
Slide 3: PennyMac Mortgage Investment Trust Is a Unique Mortgage REIT
PennyMac Mortgage Investment Trust Is a Unique Mortgage REIT 3 • Initial public offering in 2009 (NYSE: PMT); demonstrated track record of profitability and dividends to shareholders • PMT’s objective is to deliver superior investment returns over time from multiple mortgage - related strategies • S
Slide 4: Current Market Environment and Outlook
4 Current Market Environment and Outlook 2015 Barclays Global Financial Services Conference 3.0% 3.5% 4.0% 4.5% 5.0% Average 30 - year fixed rate mortgage (1) (1) Freddie Mac Primary Mortgage Market Survey. 3.90% as of 09/10/15 (2) CPR & CDR Technologies, Wells Fargo Securities, LLC as of 6/30/15 (
Slide 5: Objective of Superior Returns Over the Long Term Through Multiple Strategies
Objective of Superior Returns Over the Long Term Through Multiple Strategies 5 Correspondent Loan Aggregation MSRs and ESS Prime Non - Agency Loans (1) Commercial Real Estate Loans Distressed Residential Whole Loans • PMT’s focus is mortgage - related investments that require specialized operational
Slide 6: Balance Sheet Has Continued to Grow with New Financing
2015 Barclays Global Financial Services Conference Correspondent loan inventory and loans delivered into CRT transaction PMT’s L ong - Term Investments Ŷ Retained interests from private - label securitizations Ŷ MSRs and ESS Ŷ Agency and non - Agency RMBS Ŷ Distressed whole loans and REO 6 Balance S
Slide 7: Targeted Returns of PMT's Strategies
Targeted Returns of PMT’s Strategies 7 MSRs and ESS Prime Non - Agency Loans (2) Agency and Non - Agency MBS Distressed Residential Whole Loans Correspondent Loan Aggregation GSE Risk Transfers on PMT’s Production Commercial Real Estate Loans Targeted Unlevered Yield Targeted Gross Pretax Return on
Slide 8: PMT Creates Attractive Investments Through Its Unique Correspondent Business
GSE Risk Transfer Investments Ongoing MSR Investment Correspondent Production PMT Creates Attractive Investments Through Its Unique Correspondent Business 8 • Opportunity to invest in credit risk on loans delivered by PMT to Fannie Mae – designed to capture benefits of PMT’s high - quality correspon
Slide 9: Credit Risk Transfer Investment in PMT's Correspondent Production
Credit Risk Transfer Investment in PMT’s Correspondent Production 9 • Delivered $618 million of loans into PMT’s inaugural CRT transaction with Fannie Mae during 2Q15 (1) ; completed deliveries in July, totaling $1.2 billion • Created class M1 bond totaling $40.4 million, which PMT will own as an in
Slide 10: Correspondent Production Volume and Mix
$2.9 $3.5 $2.8 $2.8 $3.6 $4.0 $4.4 $4.4 $5.1 $8.3 $8.1 $8.4 $7.5 $9.5 $14.4 $0 $4 $8 $12 $16 2Q14 3Q14 4Q14 1Q15 2Q15 Govt Jumbo Conventional Conforming Total Locks • Correspondent acquisitions totaled $11.9 billion in 2Q15, up 49% vs. 1Q15 – Conventional conforming and jumbo acquisitions were $3.6
Slide 11: PMT's Distressed Whole Loan Investments Deliver Earnings Over Time
$755 $1,089 $1,011 $0 $500 $1,000 $1,500 $2,000 $2,500 Fair Value on Balance Sheet Collateral Value Unpaid Principal Balance $1,491 $2,105 $2,104 $0 $500 $1,000 $1,500 $2,000 $2,500 Fair Value on Balance Sheet Collateral Value Unpaid Principal Balance 11 Nonperforming Loans (at June 30, 2015) Perfor
Slide 12: Significant Growth in MSR and ESS Investments
Significant Growth in MSR and ESS Investments 12 ($ in millions) • Continued portfolio growth as investments in MSR and ESS reached $754 million, related to underlying loans with a UPB of $82.7 billion, at June 30, 2015 – Organic MSR investments resulting from correspondent production activity reach
Slide 13: PennyMac Mortgage Investment Trust
PennyMac Mortgage Investment Trust September 17, 2015 2015 Barclays Global Financial Services Conference
PennyMac Mortgage Investment Trust — 2015 Barclays Global Financial Services Conference on 6ix