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Posted by
Two Blokes Jun 15 -
Filed in
Stock
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PMTW is PennyMac Mortgage Investment Trust's new 9% Senior Notes due 2030, offering high-yield distributions at the cost of substantial credit risk. PennyMac Mortgage is highly leveraged, with significant secured debt and a weak equity buffer, raising concerns for unsecured noteholders in liquidation scenarios. The increasing risk premium on each new senior note issue signals rising perceived risk by both underwriters and the market.
