#CHIMERA 65 PATCH#

#CHIMERA 65 PATCH#

Chimera’s P-B ratio has also normalized again… but this means that the big money has also already been made.Added Read Codes Online, Repair IMEI and Patch Cert/Patch Network for MTK models * : The big money has already been madeĬhimera has fundamentally revalued and the stock has appreciated by a lot since last year.Ĭhimera’s gains have been larger than gains for the S&P 500 and other mREITs.Ī lot of mREITs now trade around book value or at small discounts… like they used to before the crisis.

Chimera's book value still has not recovered to its pre-COVID-19 level and it will take a long time to get back there. Margin calls then pressure balance sheet values and can inflict huge losses upon firms using too much leverage. Their business models are based on a lot of short term debt that can create portfolio problems and. The pandemic has shown that mREITs have a lot of investment and valuation risk.

(Source: Author) Pandemic lessons and risk Because Chimera liquidated agency securities drastically in FY 2020, the firm didn’t benefit as much from improved financing conditions in the sector as more agency-focused mREITs. But, borrowing costs for residential credit increased in FY 2020. The dividend has just been increased to $.33-share.Ĭhimera’s financing costs for agency securities dropped to just 0.5% in the 2nd quarter 2020 and have declined ever since. The graphic representation of Chimera’s total book value shows how serious the situation last year was.īecause of the liquidation of agency MBS and lower income generated from a shrinking portfolio, Chimera lowered its dividend 40% to $.30-share last year. Margin calls and forced asset sales have proven toxic for Chimera’s book value which plummeted $1.82-share in the pandemic quarter as the mREIT racked up huge losses on these sales.Ĭhimera’s book value recovered in the 3rd quarter 2020 but the GAAP book value today is still a $1 less per share than before the pandemic. The residential mortgage loan portfolio increased its importance in Chimera’s portfolio from 54% before the pandemic to 79% in the last quarter… while agency MBS are now less than 10% of Chimera’s portfolio…Ĭhimera’s total portfolio value decreased 38% since the pandemic started a year ago.

Chimera has been a net-seller of mortgage-backed securities ever since… and the value of its balance sheet has dropped to $16.7b in the last quarter.Ĭhimera’s portfolio changed fundamentally because of these agency MBS sales.

The firm’s balance sheet shrunk from $27.1b in the quarter before the pandemic to $19.2b in the 1st quarter last year. On the onset of the pandemic, in the 1st quarter 2020, spreads widened and prices for mortgage securities plummeted, causing lenders to make margin calls.Ĭhimera reacted to margin calls by liquidating agency mortgage-backed securities and reducing the size of its balance sheet. The mREIT sector has moved on from the catastrophic effects the pandemic brought upon the sector a year ago. The big money has already been made here. Photo by marrio31/iStock via Getty ImagesĪ fundamental revaluation of Chimera Investment ( NYSE: CIM) has taken place over the last year and Chimera has reduced its investment portfolio size drastically.

Chimera 65