Times are tough in the mortgage business. The Federal Reserve's aggressive tightening campaign has raised interest rates and choked off mortgage refinancing activity. Higher rates also have hurt the values of mortgage-backed securities. PennyMac Mortgage Trust (NYSE: PMT) , a real estate investment trust (REIT) that is tied to the mortgage market, has a 12% dividend yield. Is this sustainable? 

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PennyMac Mortgage Trust has three basic business strategies: Credit-sensitive strategies, Interest-rate-sensitive strategies, and correspondent production. These different strategies separate PennyMac Mortgage Trust from the typical mortgage REIT, which focuses on investment income from mortgage-backed securities. 

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Source Fool.com