CIM Stock Recent News

Chimera Investment Corporation is a New York REIT focused on residential credit investments, particularly mortgage loans and related securities. CIM operates on a blend of debt and equity to optimize returns and manage risks in a changing market affected by inflation and interest rate hikes. CIM's loan portfolio remains challenged and may only be a good investment for investors with an improving macroeconomic view. Margin headwinds are also anticipated.

Chimera Investment Corporation's common stock has been negatively impacted by the Fed's aggressive policy, leading to a collapse in earnings. The preferred stock of Chimera Investment offers a fixed quarterly dividend of $0.50 per share, currently offering a 10.2% dividend yield. The preferred dividend of Chimera has a wide margin of safety, as the worse is probably behind the company with respect to rising interest rates.

NEW YORK--(BUSINESS WIRE)--Chimera Investment Corporation (NYSE: CIM) (the "Company") announced today that it plans to release its financial results for the third quarter ended September 30, 2023 on Thursday, November 2, 2023 prior to 7:00 a.m. EDT. The Company will conduct a conference call and audio webcast to discuss the results on Thursday, November 2, 2023 at 8:30 a.m. EDT. Call-in Number:     U.S. Toll Free   (866) 604-1613 International   (201) 689-7810 Webcast   https://www.chimerareit.

This week, we shifted our allocation within the mortgage REIT Chimera Investment preferred suite. The goal of this shift was to take advantage of relative value, marginally derisk portfolio exposure, and lower the fix-for-life risk seen in other preferreds. Our "lazy-man" infrequent rotation strategy continues to deliver significant alpha and top up the beta of the preferreds.

Chimera Investment Corporation has lowered its dividend twice in the past year due to lower distributable earnings in a higher-rate environment. The rise in short-term interest rates has made the leveraged mortgage trust model less sustainable, leading to a large contraction in the company's distributable earnings. CIM stock is currently trading at a 52% discount to book value, indicating that passive income investors are pricing in another dividend decrease in the short term.

Chimera Investment Corporation is considering whether to keep CIM-B as a fixed-rate dividend or allow it to float as originally intended. The company previously stated that the LIBOR rate payable on their preferred shares was already replaced with SOFR by operation of law. The company's financial statements stated unequivocally that series B, C, and D would float. These statements were filed with the SEC a month after SOFR replaced LIBOR.

Chimera Investment (CIM) came out with quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.31 per share a year ago.

Chimera has consistently experienced substantial capital destruction, losing over 90% of its value since 2009 despite various market conditions. The allure of the company's high dividend yield, currently around 10%, has attracted income-seeking investors, but the unsustainable dividend policy leads to repeated cuts, resulting in further stock price declines. The heavy use of leverage and inadequate hedging practices make Chimera vulnerable to market fluctuations, making it a risky investment choice for long-term investors.

NEW YORK--(BUSINESS WIRE)--Chimera Investment Corporation (NYSE: CIM) (the "Company") announced today that it plans to release its financial results for the second quarter ended June 30, 2023 on Thursday, August 3, 2023 prior to 7:00 a.m. EDT. The Company will conduct a conference call and audio webcast to discuss the results on Thursday, August 3, 2023 at 8:30 a.m. EDT. Call-in Number: U.S. Toll Free (888) 437-3179 International (862) 298-0702 Webcast   https://www.chimerareit.com/news-events/.

Fixed-to-floating rate mREIT preferreds offer potential value as their market share price has moved opposite to their contracted earnings power. Chimera Investment Corporation's preferred issues, CIM.PB, CIM.PC, and CIM.PD, can be purchased for going-in dividend yields above 10%. At conversion on 03/30/2024, CIM.PB and CIM.PD will offer yields above 14% as measured against today's share prices, with potential for 30% capital appreciation.