Apr. 22 at 8:25 PM
$PMT PennyMac Mortgage reports Q1 EPS (1c), consensus 39c
"PMT produced strong levels of income excluding market-driven value changes in the first quarter," said Chairman and CEO David Spector. "This strong core performance was offset by net fair value declines due to interest rate volatility and credit spread widening. During the quarter, we opportunistically issued
$173 million in unsecured senior notes, not only demonstrating our strong access to the capital markets, but also further strengthening our balance sheet and extending our debt maturity profile.
Additionally, we successfully executed three securitizations of investor loans totaling
$1 billion in UPB, with retained investments of
$94 million at attractive returns, and firmly established PMT as a leading issuer of private label securitizations." Mr. Spector continued, "Despite tremendous interest rate volatility, PMT's long-standing expertise in risk management, including interest rate hedging and the establishment of unique financing arrangements without margin call provisions for our credit risk transfer investments, enables us to effectively manage through these challenging market conditions.
Moreover, the synergistic relationship with our manager and services provider PFSI, which provides unique access to a consistent, high-quality pipeline of loans, positions us to adapt to changes in the regulatory environment. These strategic advantages collectively distinguish us from other mortgage REITs and enhance our ability to manage through market uncertainty. As a result, I remain confident in the ability of our seasoned and experienced management team to navigate successfully through this rapidly changing environment."
