Chimera Investment Corporation Provides Update on Financing Environment as of March 18, 2020
March 18 2020 - 12:02PM
Business Wire
In light of recent market events, Chimera Investment Corporation
(“Chimera” or the “Company”) announced a $150 million common stock
buyback on March 13th and through March 17th Chimera has
repurchased $22 million of its common stock. In addition, Officers
and Directors have purchased shares.
The Covid-19 Virus has caused disruptions, but Chimera has the
technology in place for all employees to work remotely with little
or no change in normal working patterns. Federal Reserve actions
have added liquidity to the system to ensure liquidity is available
and they have started a purchase program to assist in price
stability. Both of these measures are intended to insure the
mortgage backed security market and related repurchase market
maintain liquidity and order and that transactions between market
participants continue to be efficient. Chimera has rolled the
financing of approximately $7.3 billion of collateral since March
1, 2020, including approximately $2.1 billion of collateral this
week.
Chimera’s observations regarding the financing environment for
its residential mortgage assets are unaudited and have not been
verified or reviewed by any third party, and this information is
subject to change upon completion of the Company’s 2020 first
quarter-end review and procedures (and such change could be
material). The Company undertakes no obligation to update or revise
the information set forth in this press release.
About Chimera Investment
Corporation
We are a publicly traded REIT that is primarily engaged in the
business of investing directly or indirectly through our
subsidiaries, on a leveraged basis, in a diversified portfolio of
real estate assets, including mortgage loans, Agency RMBS,
Non-Agency RMBS, Agency CMBS, and other real estate assets.
Forward-Looking Statements
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. These forward-looking statements involve significant
risks and uncertainties that could cause actual results to differ
materially from expected results, including, among other things,
those described in our most recent Annual Report, and any
subsequent Quarterly Reports on Form 10-Q, under the caption “Risk
Factors.” Factors that could cause actual results to differ
include, but are not limited to: our expected funding of any common
share repurchases, or if any such repurchases are consummated; the
state of credit markets and general economic conditions; changes in
interest rates and the market value of our assets; the rates of
default or decreased recovery on the mortgages underlying our
target assets; the occurrence, extent and timing of credit losses
within our portfolio; the credit risk in our underlying assets;
declines in home prices; our ability to establish, adjust and
maintain appropriate hedges for the risks in our portfolio; the
availability and cost of our target assets; our ability to borrow
to finance our assets and the associated costs; changes in the
competitive landscape within our industry; our ability to manage
various operational risks and costs associated with our business;
interruptions in or impairments to our communications and
information technology systems; our ability to acquire residential
mortgage loans and successfully securitize the residential mortgage
loans we acquire; our ability to oversee our third party
sub-servicers; the impact of any deficiencies in the servicing or
foreclosure practices of third parties and related delays in the
foreclosure process; our exposure to legal and regulatory claims;
legislative and regulatory actions affecting our business; the
impact of new or modified government mortgage refinance or
principal reduction programs; our ability to maintain our REIT
qualification; and limitations imposed on our business due to our
REIT status and our exempt status under the Investment Company Act
of 1940.
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.
Readers are advised that the financial information in this press
release is based on company data available at the time of this
presentation and, in certain circumstances, may not have been
audited by the company’s independent auditors.
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