페니맥 모기지 인베스트먼트 트러스트(PMT) 2026년 3분기 실적 발표 어닝콜: 배당 재조정 및 MSR 매각

핵심 요약

• 페니맥 모기지 인베스트먼트 트러스트(NYSE: PMT)는 주로 모기지 스프레드 확대와 금리 변동성으로 인해 2026년 3분기 보통주 주주 귀속 순손실이 3,600만 달러(희석 보통주당 0.41달러)를 기록했다고 발표했습니다.
• 시장 요인에 따른 가치 변동을 제외한 조정 순이익은 3,000만 달러(보통주당 0.35달러)로, 연환산 조정 자기자본이익률(ROE) 9%를 기록했습니다.
• 주당 장부가액은 전분기 대비 5% 감소한 14.03달러를 기록했습니다. 시장 요인에 따른 순가치 하락액 6,600만 달러 중 85%에 해당하는 5,600만 달러는 스프레드 확대에 기인했습니다.
• PMT는 기관(Agency) 모기지 서비스권(MSR) 미상환 원금 잔액 기준 약 350억 달러 규모를 장부가액 또는 그에 가까운 수준에서 매각했거나 매각하기로 합의했습니다. 확보된 자금은 10%대 초중반 ROE를 목표로 하는 민간 자산유동화증권 투자로 재배치되고 있습니다.
• 경영진은 향후 4개 분기의 예상 런레이트 수익 잠재력을 15% 상향 조정된 보통주당 0.38달러로 제시했으며, 이는 예상 평균 연환산 보통주 자기자본이익률 10.6%에 해당합니다.
• 경영진은 이사회 승인을 전제로 4분기 보통주 배당금이 주당 약 0.30달러로 감소할 것으로 예상하는 한편, PMT의 가용 자사주 매입 한도는 2억 달러 이상으로 늘어났습니다.

핵심 재무 데이터

사업 및 영업 실적

PMT의 신용 민감형 전략은 4,200만 달러의 세전 손실을 기록했습니다. 자체 창출한 신용위험이전(CRT) 투자는 600만 달러의 세전 이익을 기여한 반면, 민간 자산유동화로 보유한 후순위 MBS는 4,800만 달러의 손실을 기록했습니다. 여기에는 시장 변동을 제외한 600만 달러의 이익이 포함되었으나, 시장 요인에 따른 5,400만 달러의 평가가치 하락으로 인해 상쇄되었습니다.

금리 민감형 전략은 3,600만 달러의 세전 이익과 연환산 ROE 12%를 기록했습니다. 금리 상승으로 조기 상환이 둔화되고 MSR 소멸(runoff)이 줄어듦에 따라 시장 변동을 제외한 이익은 전분기 2,000만 달러에서 3,700만 달러로 증가했습니다.

PMT의 헤지 프로그램은 직접적인 금리 노출을 대부분 상쇄했습니다. MSR 공정가치 증가액 2억 2,600만 달러는 관련 세금 혜택을 포함한 MBS 및 금리 헤지의 순 공정가치 하락액 2억 4,000만 달러에 의해 상쇄되었습니다.

매입집적 및 유동화 부문은 전분기 1,100만 달러에서 감소한 200만 달러의 세전 이익을 냈습니다. 경영진은 이러한 감소 원인을 집적 기간 동안 보유한 점보 대출 및 비적격(non-QM) 대출의 스프레드 확대와 취급 물량 감소 때문이라고 밝혔습니다.

3분기 동안 PMT는 미상환 원금 잔액 기준 총 29억 달러 규모의 민간 유동화 8건을 완료했으며, 1억 6,700만 달러의 선순위 및 후순위 투자 자산을 보유했습니다. 이 보유 자산의 예상 ROE는 10%대 중반 수준입니다. 회사는 또한 1,700만 달러 규모의 신규 MSR 투자를 창출했습니다.

분기 말 이후 PMT는 2건의 추가 유동화를 완료하고 최초의 비적격(non-QM) DSCR 유동화 가격을 확정했습니다. 이들 거래의 미상환 원금 잔액은 총 11억 달러에 달하며, 1억 1,900만 달러의 보유 투자 자산을 창출할 것으로 예상됩니다.

분기 말 기준 보유 민간 유동화 투자 자산의 공정가치는 10억 달러를 상회했습니다. 해당 포트폴리오의 가중평균 실행 시점 FICO 점수는 775점, 가중평균 실행 시점 주택담보대출비율(LTV)은 73%였으며 연체는 미미한 수준이었습니다.

경영진 가이던스

경영진은 향후 4개 분기 동안의 예상 런레이트 순이익이 기존 0.33달러에서 상승한 보통주당 0.38달러가 될 것으로 예상하고 있습니다. 이러한 실적 개선 전망은 예상 MSR 상각비 감소, 자금 재배치, 자체 생성 신용 투자에서의 높은 수익률을 반영합니다.

MSR 포트폴리오는 향후 4개 분기 동안 연환산 ROE 12.8%를 기록할 것으로 전망됩니다. 민간 유동화로 새롭게 보유하게 된 신규 투자는 10%대 초중반의 ROE를 목표로 하고 있습니다.

PMT는 2026년에 약 30건의 유동화를 완료하는 목표를 향해 차질 없이 진행 중입니다. 경영진은 연내 6억 달러 이상의 보유 투자 자산이 추가될 것으로 예상합니다.

회사는 4분기 보통주 배당금을 주당 약 0.30달러로 감액할 예정이나, 해당 금액은 여전히 이사회 승인 사항입니다. 경영진은 제안된 배당 수준이 지속 가능하도록 설계되었으며, 예상 런레이트 0.38달러를 기준으로 장부가액 성장을 위해 분기당 주당 약 0.08달러를 유보할 수 있다고 말했습니다.

리스크 및 관전 포인트

해당 분기 동안 중기 및 장기 만기 구간의 벤치마크 미국 국채 금리가 50~80bp 상승했습니다. 벤치마크 MBS 스프레드는 20bp 이상 확대되며 116bp로 분기를 마감해 자산 가치와 유동화 수익성을 압박했습니다.

경영진은 향후 자본 배분이 투자 수익, 자사주 매입, 레버리지 간의 균형을 맞출 것이라고 밝혔습니다. PMT는 장부가액 대비 대폭 할인된 가격에서의 자사주 매입이 매력적이라고 보지만, 규모의 경제를 저해할 수준까지 자기자본 기반을 축소할 의도는 없다고 덧붙였습니다.

금리 상승으로 MSR 포트폴리오의 조기 상환 압력은 감소했으나, 경영진은 대출 집행 물량이 줄어들었음을 인정했습니다. 그럼에도 PMT는 코레스폰던트 비기관 매입과 페니맥 파이낸셜 서비스(PennyMac Financial Services)에서 조달한 대출이 계획된 유동화 활동을 뒷받침할 것으로 기대하고 있습니다.

애널리스트 Q&A 주요 내용

• 배당 정책: 경영진은 이사회 승인을 전제로 분기당 약 0.30달러의 배당이 유력하다고 밝혔습니다. 향후 배당 결정은 주로 GAAP 순이익에 의존하기보다 과세 대상 소득 전망 및 지속 가능한 영업 이익을 더 많이 고려할 예정입니다.
• 자사주 매입: PMT는 자사주 매입 수익률과 주거용 모기지 자산 투자 기회를 비교 검토할 것입니다. 경영진은 할인된 주식을 매입하는 현재의 수익 기회가 매력적이라고 설명했으나, 레버리지와 영업 규모가 계속 제약 요인이 될 것이라고 말했습니다.
• MSR 매각 및 자본 배치: 회사는 MSR 매각 대금을 유동성 있는 기관(Agency) 투자 자산, 민간 유동화 자산 및 자사주 매입에 신속하게 재배치할 것으로 기대하고 있습니다. 3분기의 130억 달러 규모 MSR 매각 및 후속 거래는 장부가액 수준에서 완료되었습니다.
• 유동화 수요: 경영진은 완만한 스프레드 확대에도 불구하고 비기관 투자자 수요가 여전히 견조하다고 말했습니다. 발행 기관으로서 PMT의 주기성과 일관성이 가격 책정 및 딜 청약 수요를 지원하는 요인으로 언급되었습니다.
• 일괄 MSR 시장: 경영진은 지속적인 기회주의적 매각을 지원하기에 매수층의 두께가 충분하다고 판단하고 있으며, 특히 PMT의 저금리 MSR에 대한 응찰 수요가 견조하다고 설명했습니다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good afternoon, and welcome to PennyMac Mortgage Investment Trust's Third Quarter 2026 Earnings Call. Additional earnings materials, including the presentation slides that will be referred to in the call as well as an Excel file with supplemental information are available on PennyMac Mortgage Investment Trust website at pmt.pennymac.com.

Before we begin, let me remind you that this call may contain forward-looking statements that are subject to certain risks identified on Slide 2 of the earnings presentation that could cause the company's actual results to differ materially as well as non-GAAP measures that have been reconciled to their GAAP equivalent in the earnings materials.

Now I'd like to introduce David Spector, PennyMac Mortgage Investment Trust's Chairman and Chief Executive Officer. Please go ahead.

David Spector

Thank you, operator. Good afternoon, and thank you to everyone for participating in our third quarter 2026 earnings call. Before discussing our financial results, I want to take a few moments to address the important leadership transitions we announced earlier today.

First, after a storied career in the mortgage banking industry spanning several decades, including more than 15 years of exceptional leadership at PennyMac, Doug Jones, our President and Chief Mortgage Banking Officer, has made the decision to retire in June 30, 2027. Doug has been an integral partner to me and a cornerstone of PennyMac since its early days. Over the next several months, Doug's roles and responsibilities will transition smoothly to other senior leaders across our organization.

Second, effective January 1, 2027, Kevin Ryan, currently, our Chief Strategy Officer, will assume the role of Chief Financial Officer. Dan Perotti, our current CFO, will remain in his current role through the end of this year, and we'll continue supporting the company in an advisory role through the first quarter of 2027. Kevin will continue to lead our strategy and business development teams alongside his financial leadership responsibilities.

I want to express my extraordinary gratitude to both Doug and Dan for their long service to PennyMac. The relentless dedication and their enduring passion for our business. Both served in critical leadership positions, guiding PennyMac through dynamic market cycles and helping transform our organization to the premier mortgage company it is today. Their countless contributions have shaped our foundation and they will be greatly missed.

Having said that, we have an exceptional leadership team and a deep bench of talent that is fully prepared to lead PMT into its next chapter. I have absolute confidence in this management team's ability to carry our strategy forward seamlessly while driving long-term value for our shareholders.

Turning to our third quarter results on Slide 3. PMT reported a third quarter net loss attributable to common shareholders of $36 million or a loss of $0.41 per common share. These results were primarily impacted by market-driven value declines driven by mortgage spread widening and rate volatility. Excluding market-driven value changes, our investment strategies generated adjusted net income attributable to common shareholders of $30 million or $0.35 per common share, representing an annualized adjusted return on equity of 9%. PMT paid a quarterly dividend of $0.40 per share and book value per share at September 30 was $14.03, down 5% from the end of the prior quarter. Finally, PMT's Board of Trustees approved a $130 million increase to our share repurchase authorization, bringing our total available capacity to over $200 million currently.

On Slide 4, we summarize our 3 key capital allocation priorities. In recent periods, we have sold or committed to sell approximately $35 billion in UPB of Agency MSRs, including a meaningful amount of higher note-rate MSRs, and we will continue to evaluate additional sales opportunities to free up capital for redeployment into higher-yielding investments.

Next, PMT's upcoming fourth quarter common dividend is expected to be reduced in order to maximize the potential for book value accretion and support the ongoing rotation of capital into higher returning assets. And finally, PMT's common shares continue to trade at a substantial discount to book value per share. In response, we are opportunistically looking to repurchase outstanding common shares where these repurchases meet our return hurdles, driving long-term value for our shareholders.

Now turning to Slide 5. As I mentioned earlier, the third quarter was characterized by sharply higher interest rates and significant mortgage spread wide. Benchmark treasury yields increased 50 to 80 basis points across intermediate and long tenors. At the same time, benchmark MBS spreads to treasuries widened by more than 20 basis points, expanding aggressively in September to end the quarter at 116 basis points. This wider mortgage basis drove asset price declines and sector-wide headwinds related to hedging and pipeline management.

Turning to Slide 6. We highlight why PMT is differentiated from peers and why our diversified model helped insulate us from these sector-wide headwinds. First, prepayment risk on our MSR asset remains very low with the portfolio carrying a weighted average coupon of 3.9%. Meanwhile, Agency MBS and credit-sensitive investments provide a natural hedge to our MSR portfolio, with residual exposure actively managed through interest rate derivatives.

Second, as discussed last quarter, PMT's correspondent acquisitions are now limited to non-agency loans. And finally, PMT's synergistic relationship with its manager, PennyMac Financial Services, Inc., gives it unique access to PFSI's capacity to organically create investments in the residential mortgage market. Further, PFSI's best-in-class servicing platform ensures proactive delinquency management loss mitigation, which is expected to enhance the long-term performance of our investments.

To discuss our portfolio sensitivity, the execution of our MSR sales and private label securitizations and our updated run rate return potential, I am pleased to introduce Marshall Sebring, PMT's Chief Investment Officer.

Marshall Sebring

Thank you, David. On Slide 7, you can see how PMT carries significantly less sensitivity to both interest rate and spread changes compared to other mortgage REITs. Entering the third quarter, our modeled book value sensitivity to instantaneous 50 basis point parallel rate shock was just 0.7%, less than 1/4 of the 3.6% average across the peer group of publicly traded mortgage REITs. Similarly, under a 10 basis point spread widening shock, PMT's modeled book value loss was 1.3%, compared to 4.4% for the peer group. This lower sensitivity is a direct result of our portfolio diversification.

Because fair value changes on our MSRs are naturally offset by our investments in agency MBS and credit assets, PMT's duration and spread exposures are partially mitigated before hedging activities. While mortgage spreads widened aggressively across the market, 85% or $56 million of our $66 million in net market-driven value declines was attributable to spread widening. At the same time, excluding market-driven value changes, our strategy has generated stable cash flows with our credit-sensitive and interest rate-sensitive strategies producing $12 million and $37 million of pretax income, respectively.

Looking ahead, our strategic road map is clear. We are actively rotating capital away from certain lower-yielding MSR assets and reinvesting into accretive, organically created credit investments with expected ROEs in the low to mid-teens. This deliberate rotation expands our run rate earnings power, reinforces our book value stability and positions PMT to deliver attractive, sustainable total returns to shareholders.

Moving now to Slide 8. We continue to actively rotate equity away from lower-yielding MSR investments and redeploy that capital into higher returning organically created credit investments from our private label securitization activity. During the third quarter, we sold $13 billion in UPB of Agency MSRs and entered into an agreement to sell an additional $10 billion in UPB. After quarter end, we entered into an agreement to sell another $12 billion in UPB, bringing our total closed and committed MSR sales to approximately $35 billion.

Importantly, these transactions were executed at prices at or near fair value. And we will continue to evaluate additional sales opportunities as they arise in order to optimize our return on capital and create a more balanced weighting between credit and interest rates and strategies.

In our private label securitization business, we completed 8 transactions in the third quarter across nonowner occupied, jumbo and owner-occupied collateral, retaining $167 million of accretive investments with expected ROEs in the mid-teens.

As shown on Slide 9, this ongoing capital rotation, combined with the current rate environment, has increased our projected run rate return potential over the next 4 quarters to $0.38 per common share, up 15% from $0.33 in the prior quarter. This translates to an expected average annualized return on common equity of 10.6%. This expansion in our forward-looking returns is driven by 2 key dynamics. First, higher interest rates as well as recent sales of MSRs have driven prepayment expectations lower which substantially reduces our projections for amortization. As a result, our MSR asset is projected to deliver an annualized return on equity of 12.8% over the next 4 quarters. And as discussed previously, we are accelerating the deployment of capital release from MSR sales into organically created investments from our private label securitization. These investments carry targeted ROEs in the low to mid-teens, which compares favorably to run rate returns and certain MSRs.

Overall, we expect improved performance across all 3 of our primary investment strategies. As David highlighted earlier, we will continue actively monitoring our equity allocation with PMT's upcoming fourth quarter dividend expected to be adjusted to maximize book value accretion while also considering projections of taxable income.

Now I'd like to introduce our current Chief Strategy Officer and incoming CFO, Kevin Ryan.

Kevin Ryan

Thank you, Marshall. I am honored and excited to assume the CFO role of PMT and I want to thank David and the Board for their trust and confidence. I also want to express my sincere gratitude to Dan. Over his years of leadership and has built an exceptional world-class finance organization and established a remarkably resilient balance sheet. He and I will be working closely together over the coming months to ensure continuity and a seamless operational handoff.

As CFO, my commitment is to ensure this unique platform translates into superior risk-adjusted returns and long-term total value for our shareholders. I look forward to engaging directly with our shareholders and the broader investment community in the months ahead.

And with that, I will now turn the call over to Dan, who will review the drivers of PMT's third quarter financial performance.

Daniel Perotti

Thank you, Kevin. On Slide 11, net loss to common shareholders was $36 million or $0.41 per diluted common share in the third quarter. Our credit-sensitive strategies contributed $42 million to pretax loss. Organically created CRT contributed $6 million of pretax income, primarily consisting of realized gains in carry.

Investments in subordinate MBS from our private label securitizations generated losses of $48 million as $6 million of income, excluding market-driven value changes was more than offset by a $54 million decline in market-driven value declines from the impact of increasing interest rates which are managed as a part of our global hedge program. The interest rate sensitive strategies contributed pretax income of $36 million for an annualized ROE of 12%.

Income, excluding market-driven value changes for this segment was $37 million, up from $20 million in the prior quarter as decreased prepayment speeds during the quarter drove slower runoff of our MSR assets. During the quarter, we purchased $548 million of Agency floating rate MBS and the fair value of our MBS portfolio increased to $4.3 billion at September 30, up from $4.1 billion at June 30.

Regarding market-driven fair value changes. Our hedging activities during the quarter effectively mitigated our interest rate risk exposure as the $226 million MSR fair value increase was offset by $240 million of net declines in fair value of MBS and interest rate hedges, including the related tax benefits. The aggregation and securitization segment reported a pretax income of $2 million, down from $11 million in the prior quarter. Net gains on loans acquired for sale declined from the prior quarter, primarily due to the impact of spread widening on jumbo and non-QM loans during aggregation for securitization and lower volumes.

In total, PMT reported $0.35 in adjusted earnings per share or a 9% adjusted ROE, up from $0.25 or a 6% adjusted ROE in the prior quarter primarily due to an increased contribution from the interest rate-sensitive strategies, partially offset by a lower contribution from the aggregation and securitization segment.

Slide 13 highlights the continued success of our organic investment creation engine. During the quarter, we completed 8 private label securitizations totaling $2.9 billion in UPB. This activity resulted in the retention of $167 million of new senior and subordinated investments. We also generated $17 million of new MSR investments. Our momentum has continued after quarter end. We completed 2 additional securitizations and priced PMT's inaugural non-QM DSCR securitization for a total of $1.1 billion in UPB with $119 million of expected retained investments. We remain on pace to complete approximately 30 securitizations in 2026. In total, through 2026, we expect we will have added more than $600 million of retained investments building a substantial foundation of investments with returns on equity in the low to mid-teens to support future earnings.

On Slide 14, we have provided a snapshot of the high-quality investments we are creating through our private label securitization program. At quarter end, the fair value of retained investments from this program was over $1 billion. 58% of this portfolio is comprised of investments from nonowner-occupied loan securitizations. 20% is comprised of jumbo loan securitizations with the remainder from owner-occupied loan securitizations.

As you can see, these investments feature exceptional credit characteristics, including a weighted average FICO at origination of 775, weighted average LTV at origination of 73% and negligible delinquencies. Credit quality of these organically created assets underscores our ability to produce attractive, high-yielding investments in the current market.

Turning to Slide 16. We highlight the flexible and sophisticated financing structures PMT has in place to support its diversified portfolio of investments with only $50 million in maturities of unsecured financing prior to 2029.

And finally, on Slide 17, our core debt-to-equity metric, debt-to-equity, excluding nonrecourse debt increased to 6.5x at quarter end from 6.2x at the prior quarter end within the range of our expectations. The increase in our total debt-to-equity ratio reflects growth in nonrecourse debt associated with these transactions, where all securitized loans are required to be consolidated on our balance sheet for accounting purposes.

As a reminder, the source of repayment for this debt is limited to the cash flows from the associated loans in each private label securitization, mitigating any additional exposure to PMT. We expect the divergence between these 2 metrics to continue increasing as our securitization program continues to grow.

On a more personal note, I want to take a moment to express my sincere gratitude to David, our Board of Directors, and my colleagues for their trust, partnership and shared dedication throughout my time at PennyMac. I'm extraordinarily proud of what we've accomplished in my 18 years with the company, my 6 years in the CFO role, and in particular, I'm proud of the world-class finance organization and the resilient balance sheet we've built. Having worked alongside Kevin for the past year, I have the utmost confidence in his leadership and vision to steer our financial and strategic execution going forward as he assumes the CFO role.

And finally, to our shareholders and the investment community, thank you for your thoughtful engagement, rigorous questions and constructive partnership over the years. It has been a privilege working with you.

And now we'll open it up for questions. Operator?

Operator

[Operator Instructions]. I would like to remind everyone, we will only take questions related to PennyMac Mortgage Investment Trust, or PMT. [Operator Instructions].

Your first question is from the line of Doug Harter from BTIG. Please go ahead.

질의응답

Douglas Harter

I was hoping, as you talk about kind of potentially reducing the dividend, kind of what are the key factors you're going to be thinking about as you look to size capital return between dividend and share repurchase?

David Spector

Well, look, I think that as we've talked about in our opening remarks, the dividend is likely going to be reduced in the fourth quarter. And really, my focus is to maximize the potential for book value accretion with consideration given to the taxable income projections.

So if you look at the run rate of $0.30, that kind of kicks out a dividend of about $0.30 a share and implies $0.08 per quarter of growth in book value per share. Now as it pertains to stock buybacks that we're going to look at vis-a-vis other alternative investments. And I think that's going to look to deploy capital into other residential mortgage assets, of which then we will look at that versus the stock buyback.

Douglas Harter

Got it. And how do you weigh in kind of determining stock buyback, wanting to kind of retain as much capital as possible at PMT to be able to help with the scale of growing and scaling the business and helping with efficiencies over time versus kind of the near-term financial benefit of accretion of buying back stock at these levels?

David Spector

I think where we are today, I think that the scale issue, which is one that's always on my mind. I think that's a secondary issue to the fact that we believe that there's real value within the company that's not being recognized or reflected in the stock price and you look at the return of buying back stock versus other alternative investments. It's a pretty compelling case to make in terms of buying a stock. And as evidenced by the fact that we sold MSRs at the mark and the fact that we have a very mark-to-market asset composition, I go very strongly in the value. And so I do think that at these levels, I think looking at this from a return standpoint, what this means to our shareholders is really our primary objective. Obviously, as things change, we don't want to buy back to the point that we lose the scale of the equity base so that we become too small in REIT, but it's just too compelling right now to even factor into our thinking.

Operator

The next question is from Bose George with KBW.

Bose George

So just to follow up on the dividend. So I guess you said the dividend is probably going to be around $0.30. And so compare that, your operating EPS is likely to continue in the high 30s. And so the dividend looks well covered by that? Is that kind of a fair way to think about it?

David Spector

Exactly. Exactly. We want -- dividend stability is very, very important to us. I think that we've -- we have historically tied it to GAAP earnings. And I think as Dan pointed out, we're giving more consideration to taxable income projections. And so I do think that the $0.30 amount, it has to be approved at the next Board meeting, but I don't foresee it not. And I think that we believe that the $0.30 rate is one that's sustainable that really factors into future operating earnings of the REIT, and it's something that, at the same time will allow us to grow book value per share for the remaining $0.08.

Bose George

Okay. Great. And then actually, as you guys sell the MSR, does that capital get redeployed quickly enough? Or is there any drag on the EPS?

Marshall Sebring

Bose, it's Marshall. No, we look to redeploy that capital quickly rather than allowed to sit on the balance sheet in an investment. And you can see that what we've -- the strategy we've taken over the past few quarters. Obviously, over time, we're investing into the subordinate tranches but we bought over $500 million of CMO floaters during the quarter. Our agency investments in the interest rate sensitive strategies are obviously very liquid, and that's a place where we can deploy capital quickly upon sales of the MSRs in addition to, as David mentioned, repurchasing stock.

Operator

The next question is from the line of Jason Weaver with JonesTrading.

Jason Weaver

First of all, I want to dovetail off of Doug's second question there regarding the buyback. Look, I realized how attractive this is given the discount in the marketplace right now versus deploying into other investments. But help us understand how you think about sizing that relative to your overall leverage level. given the amount of capital that you could build up within the course of 4 quarters or so, would that be a limitation for you to push leverage higher by virtue of just repurchasing the stock?

David Spector

Look, any activity we do as it pertains to asset investing or stock buyback, we're going to factor in the effect it's going to have on leverage, okay? So it's not going to be repurchased at any leverage level. I think we are very mindful. We've got a history of it of really focusing on leverage and, in particular, the nonrecourse debt to equity leverage. And I think it's just something that as we sell MSRs, we're going to look to -- we're obviously going to look to continue to invest, but there's a portion of those sales that's going to go into buying back stock. And that's how we've historically done it. It's not an all or none decisioning, and it's not one that we take lightly. But I do think that it's something that running an investment vehicle, if you just look at the return, when you look at the returns of the investments you can't ignore return opportunity that our investors are looking at in the stock buyback.

Jason Weaver

Got it. And then to follow up, the sales during -- the $13 billion in sales during the quarter as well as the ones you've executed in October. Can you talk about what sort of valuation levels you were able to move those at and how that compared with your carrying value?

Marshall Sebring

Yes. Without getting into the actual levels at which they traded, I can tell you that we sold them at our carrying values. And this is a mix of both high note-rate and low note-rate MSR holdings. So hopefully, that answers your question.

Operator

The next question is from the line of Crispin Love with Piper Sandler.

Crispin Love

Adjusted EPS improved in the quarter and also in your run rate potential on Slide 9 did as well, I think you're looking at ROEs of nearly 11% now. Can you just discuss some of the puts and takes there, the major drivers for the improved outlook even with a more challenging rate environment, rate backdrop? Is it really the diversification, the strategic shift here, but I'm just curious on some of the puts and takes.

Kevin Ryan

It's a combination of the diversification and the rotation of the capital out of MSR into some of the higher returning investments, as Marshall talked about, as well as the higher interest rate environment for PMT is not actually, necessarily a more challenging environment. Some of the challenges on -- for PMT over the past few quarters have been the speeds on the MSR portfolio that obviously is mitigated with interest rates at higher levels. And so the combination of those 2 factors are really primary drivers between driving the run rate higher through the next 4 quarters compared to last quarter.

Crispin Love

Great. And then just 1 follow-up on securitization demand today. I think on Slide 13, you're still saying, expect approximately 30 securitizations in 2026. Just curious if you -- just how demand is today, if you've seen any differences kind of recently or -- and just how is that trending?

Marshall Sebring

Yes. This is Marshall. I would say that demand continues to be strong. Certainly, if there was, I think, some amount of modest repricing wider within the non-Agency space, I would say, modest compared to the amount of spread widening that we saw in the agency MBS. We were able to already price 2 deals so far this quarter. And yes, so I think that demand continues to remain strong. I think the frequency by which we are in the market and a consistent issuer also allows us to price favorably compared to competitors, and I think that helps us in terms of overall subscription as well.

Operator

The next question is from the line of Trevor Cranston from Citizens JPM (sic) [ Citizens JMP ]. Trevor Cranston, your line is open. Please go ahead.

Trevor Cranston

Okay. Can you guys talk about how you're thinking about the impact of higher rates on your pace of loan acquisition and securitization activity, I guess, in particular, I'm thinking about some of the more rate-sensitive products like the prime jumbo loans?

Marshall Sebring

Sure. I think based off of PMT's, not only taking in the correspondent non-Agency origination but also the ability and its practice of acquiring loans from PFSI despite the fact that we've seen, obviously, a drop-off in origination volumes, relative to the size of the monthly deals that we're doing kind of by collateral type. We still see sufficient originations to support those efforts.

Trevor Cranston

Got it. Okay. Then on the bulk MSR market, I mean, you guys have obviously announced some transactions. We've heard from some peers the intent to sell some MSRs in 4Q. Can you maybe provide some color on kind of how much supply you guys are seeing come to market on the bulk MSR side? And if you think there's enough depth in the buyer base to kind of support continued opportunistic sales there in the near term?

Marshall Sebring

Yes. I think the short answer is that we do think that there's a depth to support at least what has kind of been indicated in terms of prospective sales, there is 1 servicer that was out talking about selling upwards of $80 billion. We understand that a large amount of that has already transacted. So our thinking is that certainly, it depends on the type of MSR asset. PMT has a large amount of low note-rate MSR. That part of the market is particularly well bid. So I think that overall, we don't really see depth currently at -- especially given the higher for longer, I think, outlook for rates. We think that the depth of the market certainly is supportive of continued MSR sales.

Trevor Cranston

Okay. That's helpful. Thank you.

Operator

There are no further questions at this time. I will now turn the call back to David Spector for closing remarks.

David Spector

Thank you, operator, and thank you all for joining us at this late hour. We really appreciate it. If you have any additional questions, please reach out to our Investor Relations team. And again, have a good evening, and thank you.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.