Full Description

Chimera Investment Corporation is a specialty finance company that invests in residential mortgage-backed securities (RMBS), residential mortgage loans, real estate-related securities and various other asset classes. The Company is externally managed by Fixed Income Discount Advisory Company (FIDAC). The Company's targeted asset classes and the principal investments it expects to make includes RMBS comprising agency and non-agency RMBS, residential mortgage loans consisting of prime mortgage loans, jumbo mortgage loans, and Alt-A mortgage loans and other asset backed securities (ABS) consisting of debt and equity tranches of collateralized debt obligations (CDOs), commercial mortgage backed securities (CMBS) and consumer and non-consumer ABS.

The Company focuses its investment activities on acquiring non agency RMBS and on purchasing residential mortgage loans that have been originated by select originators, including the retail lending operations of commercial banks. At December 31, 2008, the Company’s investment portfolio is weighted toward non-Agency RMBS.

The Company intends to invest in mortgage pass-through certificates issued or guaranteed by Ginnie Mae, Fannie Mae or Freddie Mac. It refers to these United States government agencies as Agencies, and to the mortgage pass-through certificates they issue or guarantee as Agency Mortgage Pass-through Certificates.

The Company has invested in residential mortgage loans (mortgage loans secured by residential real property) primarily through direct purchases from selected originators. The Company focuses 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 intends to invest in securities issued in various CDO offerings to gain exposure to bank loans, corporate bonds, ABS, mortgages, RMBS and CMBS and other instruments. The Company may also invest in consumer ABS, and CMBS secured by, or evidence ownership interests in, a single commercial mortgage loan or a pool of mortgage loans secured by commercial properties.