Chimera Investment Corporation (NYSE:CIM) – NYSE Listing Extension and the Way Forward


Dallas, Texas 09/11/2013 (Financialstrend) – A real estate investment trust (REIT), Chimera Investment Corporation (NYSE:CIM)’s key investments include agency and non-agency RMBS, residential mortgage loans, commercial mortgage loans, commercial mortgage backed securities (CMBS) and consumer and non-consumer asset backed securities (ABS).

Recently CIM has received an extension, provided the company files its FY12 Annual Report with the Securities and Exchange Commission on Form 10-K until January 31, 2014, for continued listing and trading of its stock on the New York Stock Exchange (NYSE). Though during the period of extension trading of CIM’s shares will remain uninterrupted, the extension is subject to ongoing review by NYSE.

The company is putting conscientious efforts to complete all the pending filings under applicable securities law. As a part of these efforts, company will file its Quarterly Report for the period ended June 2012 and all other remaining unfiled Quarterly and Annual reports as soon as possible.

The company offers annualized dividend yield of 12%, though the trend is declining and it is expected to continue. The heavy management fees paid by the company and issues with timely filing of Quarterly and Annual reports with the Securities and Exchange Commission have wondered the market watchers. Besides, compared to other industry players, the company has taken more risks as well.

Declining jobless claims and non-agency mortgage REITs

For the week ended August 30, 2013, the initial jobless claims fell to an annualized rate of 323,000 which is much better to the average of 356,000 during 1990 to 2007. Given the short supply of skilled construction workers, the homebuilders noted that they have to pay up for the talent which would again favor the labor market.

Non-agency mortgage REITs, which predominantly invest in non-governmental guaranteed mortgage-backed securities, like CIM, PennyMac Mortgage Investment Trust (NYSE:PMT), Two Harbors Investment Corp (NYSE:TWO) are affected by delinquencies and defaults largely driven by economic circumstances. Unemployment rate remains the key driver of defaults given their incapacity to re-pay the mortgages as well as shrink in pool of buyers as unemployed are unable to qualify for a mortgage.