Profile: Chimera Investment Corp (CIM.N)
9 Dec 2013
Chimera Investment Corporation, incorporated in June 2007, is a specialty finance company that invests, either directly or indirectly through its subsidiaries, in residential mortgage-backed securities (RMBS), residential mortgage loans, commercial mortgage loans, real estate-related securities and various other asset classes. The Company's targeted asset classes and the principal investment it expects to make includes RMBS, residential mortgage loans, commercial mortgage loans and other asset-backed securities. In January 2010, the Company formed Chimera Special Holding LLC, which is a wholly-owned subsidiary of Chimera Asset Holding LLC. In July 2010, the Company formed CIM Trading Company LLC, a wholly owned subsidiary. Chimera Securities Holdings, LLC, Chimera Asset Holding LLC, Chimera Holding LLC, and Chimera Special Holding LLC are qualified real estate investment trust (REIT) subsidiaries. CIM Trading Company LLC is a taxable REIT subsidiary. Annaly Capital Management, Inc. (Annaly) owns approximately 4.38% interest of the Company. The Company is managed by Fixed Income Discount Advisory Company (FIDAC), an investment advisor registered with the Securities and Exchange Commission (SEC). FIDAC is a wholly-owned subsidiary of Annaly.
Residential Mortgage-Backed Securities
The Company has invested in and focuses to continue to invest in RMBS, which are typically pass-through certificates created by the securitization of a pool of mortgage loans that are collateralized by residential real estate properties. The Company invests in investment grade and non-investment grade RMBS. The Company evaluates the credit characteristics of these types of securities, including, but not limited to, loan balance distribution, geographic concentration, property type, occupancy, periodic and lifetime cap, weighted-average loan-to-value and weighted-average FICO score. The Company may invest in net interest margin securities (NIMs). It may invest in mortgage pass-through certificates issued or guaranteed by Ginnie Mae, Fannie Mae or Freddie Mac, which are securities representing interests in pools of mortgage loans secured by residential real property. Agency RMBS are collateralized by either fixed-rate mortgage loans, or FRMs, adjustable-rate mortgage loans (ARMs).
Residential Mortgage Loans
The Company has invested and focused to continue to invest in residential mortgage loans (mortgage loans secured by residential real property) primarily through direct purchases from selected originators. The Company may to enter into additional mortgage loan purchase agreements with a number of primary mortgage loan originators, including mortgage bankers, commercial banks, savings and loan associations, home builders, credit unions and mortgage conduits. The Company may also purchase mortgage loans on the secondary market. The Company invests primarily in residential mortgage loans underwritten to its specifications. It may originate mortgage loans or provide other types of financing to the owners of real estate. It acquires residential mortgage loans for its portfolio with the intention of either securitizing them and retaining them in its portfolio as securitized mortgage loans, or holding them in its residential mortgage loan portfolio.
Commercial Mortgage Loans
The Company may invest in commercial mortgage loans. It may invest in first or second lien loans secured by multifamily properties, which are residential rental properties consisting of five or more dwelling units, or by mixed residential or other commercial properties, retail properties, office properties or industrial properties.
Other Asset-Backed Securities
The Company may invest in securities issued in various collateralized debt obligation (CDO) offerings to gain exposure to bank loans, corporate bonds, asset backed securities (ABS), mortgages, RMBS, commercial mortgage backed securities (CMBS), and other instruments. It may invest in CMBS, which are secured by, or evidence ownership interests in, a single commercial mortgage loan or a pool of mortgage loans secured by commercial properties. CDO issuers are special purpose vehicles that hold a portfolio of income-producing assets financed through the issuance of rated debt securities of different seniority and equity.
Chimera Investment Corp
1211 Avenue of the Americas
NEW YORK NY 10036