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.
Motley Fool  Oct 12  Comment 
Mortgage REITs have been beaten down recently, but which high-yielding stock is the better value: Two Harbors or Chimera?
Motley Fool  Sep 24  Comment 
Comparing mREITs American Capital Agency and Chimera Investment to determine which is the better dividend stock.
DailyFinance  Sep 12  Comment 
CIM Commercial Trust Corporation (NASDAQ:CMCT), a diversified real estate investment trust (REIT), announced today that its Board of Directors has declared a quarterly cash dividend of $0.21875 per common share. The dividend...
SeekingAlpha  Sep 8  Comment 
By Jason Ditz: In Greek mythology, a Chimera is a monstrous hybrid creature far stronger than the sum of its parts. The name appears to fit the philosophy of Chimera Investment Corporation (NYSE:CIM), which has endeavored to assemble an array of...
DailyFinance  Aug 21  Comment 
CIM Commercial Trust Corporation (NASDAQ:CMCT), a real estate investment trust (REIT) focused on office properties in dynamic urban markets, announced today that its Board of Directors has approved CIM Group’s recommended...
Mondo Visione  Aug 15  Comment 
The Securities and Exchange Commission today announced charges against a Houston-based penny stock company and four individuals behind a pump-and-dump scheme that misled investors to believe the company was on the brink of developing revolutionary...
SeekingAlpha  Aug 12  Comment 
Chimera Investment Corp. (NYSE:CIM) Q2 2014 Earnings Conference Call August 12, 2014 10:00 A.M. ET Executives Willa Sheridan Matthew J. Lambiase - President and CEO Mohit Marria - Chief Investment Officer Analysts Steven...
DailyFinance  Aug 11  Comment 
Chimera Investment Corporation (NYSE:CIM) today announced its financial results for the quarter ended June 30, 2014. Financial Performance and Key Metrics The Company reported net income for the quarter ended June 30, 2014 of ...


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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