QUOTE AND NEWS
Motley Fool  Dec 2  Comment 
Chimera Investment Corporation sports a meaty 10.7% dividend yield. But is that dividend safe for the long run? A dividend payout ratio analysis offers guidance.
Wall Street Journal  Nov 20  Comment 
Real-estate investor CIM Group, a lender to the developers of New York’s Trump SoHo hotel and condominium, on Thursday won a foreclosure auction that will allow it to own the property, a CIM executive said.
Motley Fool  Nov 15  Comment 
Book value growth, a stable dividend, and core earnings covering dividend payments make Chimera Investment an interesting mortgage REIT investment for income investors.
TheStreet.com  Nov 11  Comment 
NEW YORK (TheStreet) -- Chimera Investment shares are rising 2.2% to $3.22 on Tuesday after the specialty finance company released its third quarter earnings results yesterday after the closing bell. The company reported core earnings of 11...
newratings.com  Nov 10  Comment 
WASHINGTON (dpa-AFX) - Chimera Investment Corp. (CIM) reported third-quarter net income of $377.6 million or $0.37 per share, compared to $67.4 million or $0.07 per share, prior year. Core earnings per share was $0.12, for the quarter. On...
TechCrunch  Nov 4  Comment 
 What’s a 3D scanner for? More than just providing source material for 3D printers, reckons Fuel3D, an Oxford University spin-out that last year Kickstarted a consumer-grade, high-resolution handheld 3D scanner. Today it’s announcing a $6.4...
SeekingAlpha  Oct 17  Comment 
By Christopher F. Davis: Chimera Investment Corporation (NYSE:CIM) has performed well in the last two years after having a dismal performance from the Great Recession to 2011, which saw its dividend cut in half along with its share price. But now...
Motley Fool  Oct 13  Comment 
Chimera may be a cheap stock, but it's among Wall Street's most hated companies. Find out why Wall Street would just as soon give Chimera the boot and whether or not the stock can buck Wall Street's pessimism and head higher.




 
TOP CONTRIBUTORS

Chimera Investment Corporation (NYSE:CIM) is a specialty finance company and investment company. The primary focus of Chimera is real estate backed securities. The company is externally managed by Annaly Capital Management (NLY).


Trends and Forces

Mortgage backed leveraging problems

Although the Company had reported leverage of just 0.5 to 1 at 12/31/07, the calculation excluded a $750 million payable for MBS, which was resolved at the end of January, when CIM entered into a $500 million repo facility with CSFB and a $350 million repo facility with Deutsche Bank -- levering up four-fold in the process just as competitor America First Mortgage Investments (MFA) was selling assets to de-lever its balance sheet. The agency-backed and AAA markets dislocated again, and Chimera's repos have created a liquidity problem for the newly-formed company. Chimera held cash and cash equivalents of just $6.0 million at December 31, 2007, and warned in its 10-K that: An increase in prepayment rates substantially above our expectations could cause a temporary liquidity shortfall due to the timing of the necessary margin calls on the financing arrangements and the actual receipt of the cash related to principal paydowns.

Bank Repurchase agreements

Chimera has had to amend its repurchase agreement with Deutsche Bank twice since initiating it in January to bring the liquidity covenant down to $40 million from $100 million. For this, it has had to agree to:

  • Provide daily liquidity reports through April 15, 2008
  • Provide mark to market positions and advance rates with respect to all loans and securities

In addition, Chimera agreed to allow DB the right to act as the lead underwriter in connection with the next securitization or other similar public or private pass-through disposition of any Loan sponsored by Seller or an Affiliate thereof, for a market-rate fee.

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