UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev | Next
Author: joelcorley Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Re: 10 year treasuries Date: 1/6/2014 10:43 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 5
BenHacker,

You wrote, Care to give me an elevator pitch on PMT?

PennyMac (PMT) is a REIT founded by a handful of ex-Countrywide Loan execs. Its essentially a play on junk mortgages. This REIT was originally founded with the idea of buying distressed mortgages from banks that are desperate to get them off their books, preferably at a deep discount and either rehabbing them or repossessing the properties securing them.

These days they also originate some new loans and buy some correspondent lending loans, though some banks are still divesting. Correspondent lending is basically wholesale lending through mortgage brokers. Banks quit dealing in correspondent lending after the credit crisis, so PMT has made a business of going places banks now fear.

With that said, I think PMT will start seeing some difficulty maintaining its margins. Right now it pays a yield of about 10%. But I could see that going down in a few years and that will likely result in a contraction its share price. But right now I think its still a cash cow, even if you might have missed some of its best years.

Also, Never heard of CTSH, thanks for the heads up...

CTSH is an old spin-off of Dun and Bradstreet. It's an outsourcing firm that supplies talent, largely from India. As the saying goes, If you can't beat them...

And, Good luck on your retirement goal. If you are still adding some funds, I think doubling in 6 years is possible...

Still adding and at a significant clip. I could be retired in 5. Worse-case is 8, I think. Doubling should happen in no more than 10 years even if I didn't add a dime; but I'm still contributing quite a bit.

Finally, If we don't see you around these parts much anymore I'll assume it's because you are making what you need on your road to retirement... we don't all need to try to beat the market.

I'll still be around. But I'm not going to be doing much in fixed income unless we have another crisis and I think there are good opportunities here worth my time... Else I've retired and I've got nothing better to do...

- Joel
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement