Another day and another debt offering by a mortgage company. This time around the issuer is PennyMac Financial, a top-ranked Ginnie Mae issuer.

While most of the larger mortgage REITs began growing portfolios that were ravaged by market turmoil at the end of March, many smaller firms continued to shrink. (Includes data chart.)

These are not calming times for investors in Ginnie Mae MBS. Forbearance ratios are on the rise again and then there’s the buyout issue.

The fall in prepayment speeds follows four successive months of steady increases. This may have something to do with how the rate is calculated.

As investors sift through the tea leaves of the bond market, the average daily trading volume in agency MBS increased 11% in July from the month prior. But where we go from here is anyone’s guess.

It’s here: A mortgage-backed security, 15-years in duration, that pays investors a note rate of 1.5%. Would you lock up your money for that long? You may not have a choice.

The REIT’s plan to terminate its management agreement with PRCM “for cause” would let it off the hook from paying a $144 million termination fee. But PRCM isn’t going down without a fight.

The average daily trading volume in MBS continues to head south as new creation proliferates and investors worry about the Dow blowing up again.

With overnight funding in the agency repo market hovering around 15 basis points and term repo rates a shade above the one-month LIBOR, yields for agency mREITs could edge upward, KBW analysts predict.

There’s nothing wrong with buying delinquent mortgages out of Ginnie pools, but some issuers may have been getting too greedy during the pandemic.