Here are 1-3 brief analogies to describe PennyMac Mortgage Investment Trust (PMT):

• It's like Sysco for home mortgages, buying loans in bulk from smaller lenders and reselling them to institutional investors.
• Think of it as a specialized BlackRock or Vanguard fund, but exclusively focused on investing in various mortgage-related assets.

• Credit Sensitive Investments: The company invests in credit risk transfer (CRT) agreements, CRT securities, distressed loans, real estate, and non-agency subordinated bonds.
• Interest Rate Sensitive Investments: The company invests in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency mortgage-backed securities.
• Correspondent Mortgage Aggregation: The company purchases, pools, and resells newly originated prime credit residential loans from other lenders directly or in the form of mortgage-backed securities.

PennyMac Mortgage Investment Trust (PMT) primarily sells its mortgage-related assets to other companies. The provided background information does not explicitly name specific customer companies. However, based on the company's activities, particularly its Correspondent Production segment which involves "purchasing, pooling, and reselling newly originated prime credit residential loans directly or in the form of MBS," its major customers would be institutional buyers in the financial markets. These typically include:

• Institutional Investors: These include entities such as pension funds, mutual funds, insurance companies, hedge funds, and banks, which purchase mortgage-backed securities (MBS) and loan portfolios for investment purposes.
• Government-Sponsored Enterprises (GSEs): While not explicitly named as direct customers in the description, entities like Fannie Mae (FNMA) and Freddie Mac (FMCC) are significant participants in the secondary mortgage market and major purchasers/guarantors of agency MBS, representing a key part of the market into which PMT resells its assets.

PennyMac Financial Services, Inc. (NYSE: PFSI)

David A. Spector, Chairman and Chief Executive Officer

David A. Spector became Chairman and Chief Executive Officer of PennyMac Mortgage Investment Trust (PMT) in February 2021, having previously served as President and Chief Executive Officer since January 2017. He has been a member of the board of PMT since its formation in May 2009. Mr. Spector has also held various executive positions at Private National Mortgage Acceptance Company, LLC (PNMAC) since its founding in January 2008, which he co-founded with Stanford Kurland. Prior to joining PNMAC, Mr. Spector was co-head of global residential mortgages for Morgan Stanley. Before Morgan Stanley, he was the senior managing director, secondary marketing, at Countrywide Financial Corporation from May 1990 to August 2006.

Daniel S. Perotti, Senior Managing Director and Chief Financial Officer

Daniel S. Perotti has served as Senior Managing Director and Chief Financial Officer of PennyMac Mortgage Investment Trust since January 1, 2021. He joined PennyMac in 2008 and previously served as Deputy Chief Financial Officer from January 2017 to December 2020, and as Chief Asset and Liability Management Officer, among other positions. Before joining PennyMac, Mr. Perotti was employed at BlackRock, Inc. from 2002 to 2008, where he was head of the quantitative research team within its BlackRock Solutions business.

Doug Jones, Trustee, President and Chief Mortgage Banking Officer

Doug Jones has been Trustee, President and Chief Mortgage Banking Officer of PennyMac Mortgage Investment Trust since March 2023 and March 2021, respectively. He has held key executive positions at PennyMac and its affiliates since 2011/2012, including Senior Managing Director and Chief Mortgage Banking Officer. Mr. Jones is responsible for all business activities related to mortgage banking operations. Before joining PennyMac, he worked in various executive roles at Countrywide Financial Corporation (and Bank of America Corporation, its successor) from 1997 to 2011, and was previously chief executive officer of California United Bank's Mortgage Division.

Mark Elbaum, Senior Managing Director and Chief Capital Markets Officer

Mark Elbaum is the Senior Managing Director and Chief Capital Markets Officer for PennyMac Mortgage Investment Trust. He joined Pennymac in April 2023 as Managing Director, Strategic Initiatives and took on the interim role of Chief Capital Markets Officer in October 2024. In his current role, Mr. Elbaum oversees all capital markets activities, including the development and execution of investment strategies, secondary marketing, servicing asset valuation, hedging activities, and capital markets execution strategies.

Abbie Tidmore, Senior Managing Director and Chief Revenue Officer

Abbie Tidmore has served as Senior Managing Director and Chief Revenue Officer of PennyMac Mortgage Investment Trust since October 2022. She previously held the role of Senior Managing Director, PennyMac Correspondent Group Sales from January 2021 to October 2022. Ms. Tidmore has held various similar executive positions at PFSI and its affiliates since 2011 and has been instrumental in building and leading the correspondent lending division.

1. Volatile Interest Rate Environment

As a mortgage real estate investment trust (REIT), PennyMac Mortgage Investment Trust faces a core challenge in a volatile interest rate environment. This volatility directly impacts the fair value of the company's Mortgage Servicing Rights (MSRs) and other interest-rate-sensitive assets, as well as its funding costs and hedging results. High interest rates can also create a challenging environment for mortgage origination.

2. High Leverage

PennyMac Mortgage Investment Trust's financing strategy relies heavily on debt to amplify returns on its mortgage-related assets, which simultaneously magnifies risk. The company's debt-to-equity ratio has been noted as significantly higher than the industry average, which can lead to increased volatility in book value, especially during periods of interest rate shifts or widening credit spreads. Elevated leverage can put substantial pressure on earnings, particularly if short-term interest rates increase.

3. Credit Risk and Housing Market Downturn

PennyMac Mortgage Investment Trust is exposed to significant credit risk through its investments in credit risk transfer agreements, distressed loans, and other mortgage-related assets. This includes the risk of increased delinquencies, defaults, and lower recovery rates on investments. A general downturn in the housing market could lead to higher delinquencies, negatively affect net interest income, create servicer obligations, and potentially result in write-downs of mortgage-backed securities values and contractual obligations under credit risk transfer investments. Furthermore, a downside surprise in U.S. GDP growth could also impact strategies that bear credit risk.

• Credit Risk Transfer (CRT) Agreements and Securities: The U.S. credit risk transfer market has grown to over US$50 billion, referencing approximately US$2 trillion of single-family mortgage loans within the broader US$13 trillion mortgage market as of April 2024. Global bank issuance of CRTs is projected to reach US$30 billion by the end of 2024.
• Distressed Loans: While a precise U.S. distressed loan market size is dynamic and can be a component of broader private credit, globally, nearly US$650 billion of bonds and loans were in distressed territory as of December 2022. The private credit market in the United States, which includes distressed debt, is estimated to be between US$1.5 trillion and US$2.1 trillion as of April 2024. Furthermore, the addressable market for private credit in the United States alone is estimated at a staggering US$30 trillion as of April 2025.
• Mortgage Servicing Rights (MSRs): The U.S. mortgage servicing rights market saw robust trading volumes approaching the US$1 trillion mark in 2024, a trend anticipated to continue into 2025.
• Agency Mortgage-Backed Securities (MBS): Agency MBS represent the second-largest segment of the U.S. bond market, comprising 27% of the Bloomberg Aggregate Index. As of December 2022, agency mortgage-backed securities outstanding in the U.S. were valued at US$9 trillion. Annual gross issuance for agency MBS averaged US$1.6 trillion from 2008 to 2023.
• Non-Agency Mortgage-Backed Securities (MBS) and Non-Agency Subordinated Bonds: The non-agency residential mortgage-backed securities (RMBS) market in the U.S. is substantial, with over US$1.7 trillion in outstanding securities as of December 31, 2025. Total non-agency MBS issuance reached US$185.85 billion in 2025, marking a 39.5% increase from 2024. Issuance in 2024 was US$32.58 billion, up from US$11.43 billion in 2023. As of December 2022, non-agency MBS were valued at US$0.7 trillion. The broader U.S. corporate bond market, which would encompass non-agency subordinated bonds, had US$11.5 trillion outstanding as of Q3 2025.
• Correspondent Production (Residential Mortgage Origination): U.S. single-family mortgage originations are projected to increase to US$2.2 trillion in 2026, up from an estimated US$2.0 trillion in 2025. Other forecasts also indicate U.S. mortgage originations reaching US$2.27 trillion in 2026. In the fourth quarter of 2025, U.S. mortgage originations increased to US$524.42 billion.

Expected Drivers of Future Revenue Growth for PennyMac Mortgage Investment Trust (PMT)

Over the next 2-3 years, PennyMac Mortgage Investment Trust (PMT) is expected to drive future revenue growth through several key strategies and market dynamics:

1. Continued Growth in Credit Sensitive Strategies: PMT anticipates increased returns from its Credit Sensitive Strategies segment, which includes investments in credit risk transfer (CRT) securities and subordinate mortgage bonds. This growth is expected to be supported by accretive investments, particularly those stemming from private label securitizations.
2. Expansion of Organic Private Label Securitization Activities: The company has significantly scaled up its organic investment creation activities through private label securitizations, having completed 19 securitizations totaling $6.7 billion in unpaid principal balance (UPB) in 2025, a substantial increase from 2024. PMT has established itself as a top-three issuer of prime non-Agency mortgage-backed securities (MBS), and this increased activity is expected to continue driving revenue.
3. Positive Momentum in Correspondent Production: Despite a recent pretax loss, PMT's Correspondent Production segment has shown positive momentum. The company expects improved execution and an overall increase in the segment's return potential, driven by activities such as gains on non-owner occupied and jumbo loans.
4. Optimized Performance from Interest Rate Sensitive Strategies: PMT's Interest Rate Sensitive Strategies, which include mortgage servicing rights (MSRs) and agency mortgage-backed securities, are poised for enhanced performance. Management commentary suggests that a further steepening of the yield curve could lead to higher overall run rates and yields within these strategies.

Share Repurchases

• PennyMac Mortgage Investment Trust (PMT) returned $28 million to shareholders through its share repurchase program in 2023.
• The Board of Trustees authorized an increase in its share repurchase program from $400 million to $500 million, before transaction fees.
• The company repurchased 2.411 million common shares in 2023, 6.094 million in 2022, and 3.099 million in 2021.

Share Issuance

• In 2025, PMT raised $150 million through opportunistic reopenings of exchangeable senior notes due June 2029.
• An additional $75 million in 8.500% Exchangeable Senior Notes due 2029 were issued in December 2025, with net proceeds of approximately $75.6 million primarily intended to repay borrowings and for general business purposes.

Outbound Investments

• In 2025, PennyMac Mortgage Investment Trust acquired $5.5 billion in unpaid principal balance of loans, including $3.7 billion in conventional conforming and non-Agency loan volume from PennyMac Financial Services, Inc. (PFSI), and $1.8 billion in UPB of loans from PFSI's production for private label securitizations.
• PMT generated $717.9 million in new mortgage servicing rights (MSR) and securitization-related investments in 2025.
• The company purchased $876 million of agency floating rate mortgage-backed securities (MBS) and sold $195 million in Government-sponsored enterprise (GSE)-issued Credit Risk Transfer (CRT) investments in 2025, reallocating capital to higher-returning assets.