PennyMac Mortgage Investment Trust(US:PMT)2025-01-31 03:05Financial Performance & Strategies - PennyMac Mortgage Investment Trust's (PMT) results were driven by strong levels of income excluding market driven value changes in Q4 2024[4] - PMT's diverse strategies provided multiple sources of returns, with pretax income contributions from credit sensitive strategies at $123 million, interest rate sensitive strategies at $16 million, and correspondent production at $57 million in 2024[7, 8] - PMT strengthened and repositioned its balance sheet for higher rates, and its hedging strategy protected book value despite significant interest rate volatility[9, 10] - PMT is focused on unique investment strategies in three segments: Correspondent Production, Interest Rate Sensitive Strategies, and Credit Sensitive Strategies[44, 45] Investment Activities & Portfolio - PMT completed two securitizations of Agency-eligible investor loans from PMT's production in Q4 2024, resulting in $52 million of net new investments in credit sub-bonds[13, 18] - New MSR investments totaled $219 million[13] - The fair value of PMT's MSR investments was $3.9 billion as of December 31, 2024[5, 30] - The fair value of organically-created CRT investments was $1.1 billion[5] - Approximately $21.2 billion in UPB of loans underlying PMT's front-end GSE CRT investments at December 31, 2024[45] Market Outlook & Correspondent Production - Industry originations are estimated to average $1.7 trillion in 2024 and $2.0 trillion in 2025[16] - PMT's correspondent production volume was $3.5 billion in Q4 2024[5] - Correspondent seller relationships totaled 789[5]