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Chimera Investment Corporation Message Board

  • theheckwithtech theheckwithtech Feb 17, 2012 10:53 AM Flag

    You're missing one key factor.....

    In the ongoing speculation about what the dividend & per share price will be, it seems to be overlooked that CIM has roughly 75% NON Agency investment, which is not as affected as full agency investment by a flattening yield curve. NLY, AGNC and those guys are being more affected by the yield curve, and when (not if) interest rates start to go up, their earnings will suffer, and CIM, who holds a much larger percentage of adjustable rate paper, will benefit from higher interest rates after a few quarters of mortgage resets.

    I am as anxious as anyone to see the earnings report because even though I have sold about 9000 shares recently, I am still holding around 80,000 or so. If the earnings suprise to the upside, my portfolio gets a boost. If earning stay flat, well, I'm still making about 15% in dividends. If earnings fall slightly, then I'll use the opportunity to lower my cost basis further and wait for the recovery in share price however many months or years later it comes. In any scenario for this earning report, it is a win/win/win for me. I have been investing with NLY for many years now, and I trust these guys a lot. You do however, need to pay attention to your cost basis, and always have some cash on hand to buy on big down days that have no explanation.

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CIM
12.32-0.12(-0.96%)Feb 5 4:01 PMEST