Profile: Chimera Investment Corp (CIM.N)
22 Aug 2014
Chimera Investment Corporation, incorporated in June 1, 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 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 Capital Management, Inc.
Residential Mortgage-Backed Securities
The Company has invested in and intend to continues 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 certain credit characteristics of these types of securities, including, but not limited to, loans balance distribution, geographic concentration, property type, occupancy, periodic and lifetime caps, weighted-average loan-to-value and weighted-average Fair Isaac Corporation (FICO) score.
The Company may invest in net interest margin securities (NIM), which are notes that are payable from and secured by excess cash flow that is generated by RMBS or home equity line of credit-backed securities, or HELOCs, after paying the debt service, expenses and fees on such securities. The Company may also invest in interest-only (IO) Agency and Non-Agency RMBS. The Company 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 where payments of both interest and principal, plus pre-paid principal, on the securities are made monthly to holders of the security, in effect passing through monthly payments made by the individual borrowers on the mortgage loans that underlie the securities, net of fees paid to the issuer/guarantor and servicers of the securities. The Company may also invest in collateralized mortgage obligations, or CMOs, issued by the Agencies.
Residential Mortgage Loans
The Company has invested in and may in the future invests in residential mortgage loans (mortgage loans secured by residential real property) primarily through direct purchases from selected mortgage originators. The Company may also purchase mortgage loans on the secondary market.
Commercial Mortgage Loans
The Company may invest in commercial mortgage loans. Generally, the Company 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. These loans may or may not conform to the Agency guidelines. The Company may also purchase mortgage loans on the secondary market. The Company expects these loans to be secured primarily by residential properties in the United States. The Company may originate mortgage loans or provide other types of financing to the owners of real estate.
Commercial Mortgage Loans
The Company may invest in commercial mortgage loans. Generally, the Company 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. These loans may or may not conform to the Agency guidelines.
Other Asset-Backed Securities
The Company may invest in securities issued in various CDO offerings to gain exposure to bank loans, corporate bonds, ABS, mortgages, RMBS, CMBS, and other instruments. The Company 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. These securities may be senior, subordinated, investment grade or non-investment grade. The Company intends to invest in CMBS that will yield current interest income and where the Company considers the return of principal to be likely. The Company intends to acquire CMBS from private originators of, or investors in, mortgages loans, including savings and loan associations, mortgage bankers, commercial banks, finance companies, investment banks and other entities.
Chimera Investment Corp
Suite 2902, 1211 Avenue of the A
NEW YORK NY 10036