Chimera Investment Corporation invests in residential
mortgage-backed securities (RMBS), residential mortgage loans, real estate-related
securities and various other asset classes. Our objective is to provide attractive
risk-adjusted returns to our investors over the long-term, primarily through dividends
and secondarily through capital appreciation, by maintaining a business model that
evolves with market opportunities. We have elected to be taxed as a REIT for federal
income tax purposes. We are externally managed by Fixed Income Discount Advisory
Company (FIDAC), a wholly-owned subsidiary of Annaly Capital Management, Inc.
Chimera manages residential mortgage credit
risk. We strive to achieve our objective of providing attractive risk-adjusted returns
to our investors over the long-term by investing in a diversified investment portfolio
of RMBS, residential mortgage loans, real estate-related securities and various
other asset classes.
In addition, we engage in transactions with residential mortgage originators in
which we identify and re-underwrite residential mortgage loans owned by such entities,
and rather than purchasing and securitizing such residential mortgage loans ourselves,
we and the originator structure the securitization and purchase the resulting mezzanine
and subordinate non-Agency RMBS. We have and may continue to engage in similar transactions
with non-Agency RMBS in which we acquire originally AAA-rated non-Agency RMBS and
re-securitize those securities.
We may use leverage to increase potential returns to our stockholders. Subject to
maintaining our REIT qualification and availability of funding, we may use a number
of sources to finance our investments, including repurchase agreements, warehouse
facilities, securitizations, asset backed commercial paper and term financings.
Our strategy of balancing both interest rate and credit sensitive assets is designed
to generate attractive, risk-adjusted returns in a variety of market conditions.
Over time, we will modify our investment allocation strategy as market conditions
change to seek to maximize the returns from our investment portfolio.