CHIMERA Investment Strategy

We invest in Prime and Alt-A residential mortgage loans, residential mortgage-backed securities, or RMBS, debt and equity tranches of CDO's, commercial mortgage-backed securities and consumer and non-consumer asset-backed securities. Our investment strategy is to take advantage of opportunities in the current interest rate and credit environment, adjusting our strategy to the changing market conditions by shifting our asset allocations across these various asset classes as interest rate and credit cycles change over time.

Our strategy, combined with FIDAC's experience, is designed to enable us to pay dividends and achieve capital appreciation through changing market cycles. We take a long-term view of assets and liabilities, and our reported earnings and mark-to-market valuations at the end of a financial reporting period will not significantly impact our objective of providing attractive risk-adjusted returns to our stockholders over the long-term.