Chimera Investment Corporation Sponsors Two Residential Mortgage Loan Securitizations

Rhea-AI Summary

On June 25, 2021, Chimera Investment Corporation (NYSE:CIM) announced the CIM 2021-R4 securitization, totaling $545.7 million in seasoned reperforming residential mortgage loans. Of this, approximately $463.8 million was sold to institutional investors, with Chimera retaining $81.9 million in subordinate interests. The average cost of debt for this securitization is significantly lower at 1.97%, compared to 3.79% for prior securitizations. Additionally, Chimera sponsored a $320.3 million prime jumbo securitization rated by Moody's and Fitch.

Positive

• Successful securitization of $545.7 million in seasoned mortgage loans.
• Reduced average cost of debt at 1.97%, enhancing financial efficiency.
• Retention of $81.9 million in subordinate interests, indicating confidence in asset value.
• Introduction of a $320.3 million prime jumbo securitization, expanding market presence.

Negative

• None.

On June 25, 2021, Chimera Investment Corporation (NYSE:CIM) sponsored CIM 2021-R4, a $545.7 million securitization of seasoned reperforming residential mortgage loans. The mortgage loans for the securitization were from the termination of Chimera’s CIM 2018-R1, CIM 2018-R2, and CIM 2018-R4 securitizations (the “Prior Securitizations”).

Securities issued by CIM 2021-R4, with an aggregate balance of approximately $463.8 million, were sold in a private placement to institutional investors. These senior securities represented approximately 85% of the capital structure. Chimera retained subordinate interests in securities with an aggregate balance of approximately $81.9 million and certain interest-only securities. Chimera also retained an option to call the securitized mortgage loans at any time beginning in June 2024. Chimera’s average cost of debt of this securitization is 1.97% compared to a weighted cost of debt of 3.79% for the Prior Securitizations.

In addition, Chimera sponsored its third prime jumbo securitization, $320.3 million of CIM 2021-J3 in June. The securitization is rated by Moody’s and Fitch.

Disclaimer

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.

About Chimera Investment Corporation

We are a publicly traded REIT that is primarily engaged in the business of investing, on a leveraged basis, in a diversified portfolio of real estate assets, including mortgage loans, Non-Agency RMBS, Agency CMBS, Agency RMBS, and other real estate assets.

Please visit www.chimerareit.com for additional information about the Company.

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