Hit the road PMT

As soon as the market opens tonight, our PennyMac Mortgage Investment Trust (PMT) holding will be sold off. Fortunately, we only have a small number of shares in the company. Tearing off the band-aid should be relatively painless.

The reason we choose to sell PMT is that they cut their dividend by 14.9% to ¢40/share. Their annual yield will be 10.86%, which is very good, but experience is that when the moving backwards starts, it usually stays. We will keep an eye on the company to see how it develops going forward.