Chimera Investment Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Chimera Investment Corp has submitted its 2023 10-K filing, detailing its financial performance and operational data for the fiscal year ending December 31, 2023.</b>

AI Summary

CHIMERA INVESTMENT CORP (CIMO) filed a Annual Report (10-K) with the SEC on February 29, 2024. Chimera Investment Corp filed its 10-K for the fiscal year ending December 31, 2023. The company is incorporated in Maryland and operates within the Real Estate Investment Trusts sector. Key addresses include 520 Madison Avenue, 32nd Floor, New York, NY 10022. The filing covers the period from January 1, 2023, to December 31, 2023. The report includes data related to various preferred stock classes and securitized loans.

Why It Matters

For investors and stakeholders tracking CHIMERA INVESTMENT CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Chimera Investment Corp's financial health, asset holdings, and liabilities for the fiscal year 2023, crucial for investors assessing its performance and future prospects. The detailed breakdown of assets, including Non-Agency Residential Mortgage-Backed Securities and securitized loans, offers insights into the company's investment strategy and risk exposure within the real estate and financial markets.

Risk Assessment

Risk Level: medium — CHIMERA INVESTMENT CORP shows moderate risk based on this filing. The company's significant holdings in Non-Agency Residential Mortgage-Backed Securities and securitized loans expose it to market and credit risks inherent in the real estate and financial sectors, as indicated by the detailed asset classifications in the filing.

Analyst Insight

Investors should review the detailed asset and liability schedules within the 10-K to understand Chimera Investment Corp's exposure to interest rate fluctuations and credit risk in its mortgage-backed securities portfolio.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-29 — Filing Date (Filed as of date)
• 6798 — SIC Code (Standard Industrial Classification)
• 001-33796 — SEC File Number (SEC file number)

Key Players & Entities

• CHIMERA INVESTMENT CORP (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240229 (date) — Filed as of date
• 520 MADISON AVENUE (address) — Business address street 1
• NEW YORK (location) — Business address city
• MD (location) — State of incorporation
• 212-626-2300 (phone) — Business phone
• CIMO (ticker) — Ticker symbol

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-29: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document detailing Chimera Investment Corp's financial status for the fiscal year 2023.)

Real Estate Investment Trusts

Companies that own, operate, or finance income-generating real estate. (This is the industry classification for Chimera Investment Corp, indicating its core business.)

Non-Agency Residential Mortgage-Backed Securities

Securities backed by residential mortgages that are not guaranteed by government-sponsored entities like Fannie Mae or Freddie Mac. (These are significant assets for Chimera Investment Corp, indicating potential exposure to specific market risks.)

Key Financial Figures

• $0.01 — ch Registered Common Stock, par value $0.01 per share CIM New York Stock Exchange

Filing Documents

• cim-20231231.htm (10-K) — 3961KB
• cim-123123exhibit41.htm (EX-4.1) — 485KB
• cim-123123exhibit102.htm (EX-10.2) — 77KB
• cim-123123exhibit103.htm (EX-10.3) — 52KB
• cim-123123exhibit109.htm (EX-10.9) — 196KB
• cim-123123exhibit211.htm (EX-21.1) — 7KB
• cim-123123exhibit231.htm (EX-23.1) — 4KB
• cim-123123exhibit311.htm (EX-31.1) — 10KB
• cim-123123exhibit312.htm (EX-31.2) — 11KB
• cim-123123exhibit321.htm (EX-32.1) — 7KB
• cim-123123exhibit322.htm (EX-32.2) — 7KB
• cim-123123exhibit97.htm (EX-97) — 32KB
• cim-20231231_g1.jpg (GRAPHIC) — 104KB
• 0001628280-24-007962.txt (&nbsp;) — 19155KB
• cim-20231231.xsd (EX-101.SCH) — 105KB
• cim-20231231_cal.xml (EX-101.CAL) — 121KB
• cim-20231231_def.xml (EX-101.DEF) — 709KB
• cim-20231231_lab.xml (EX-101.LAB) — 1081KB
• cim-20231231_pre.xml (EX-101.PRE) — 857KB
• cim-20231231_htm.xml (XML) — 3597KB

BUSINESS

BUSINESS 3 ITEM 1A.

RISK FACTORS

RISK FACTORS 10 ITEM 1B. UNRESOLVED STAFF COMMENTS 38

CYBERSECURITY

ITEM 1C. CYBERSECURITY 38 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 38 ITEM 4. MINE SAFETY DISCLOSURES 38 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 38 ITEM 6. [RESERVED] 40 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 41 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 66 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 72 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 72 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 72 ITEM 9B. OTHER INFORMATION 73 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 73 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 73 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 74 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 74 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 74 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 74 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 74

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 77

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 130

SIGNATURES

SIGNATURES 131 1 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS We make forward-looking statements in this report that are subject to risks and uncertainties. These forward-looking statements include information about, among other things, possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words believe,'' expect,'' anticipate,'' estimate,'' plan,'' continue,'' intend,'' should,'' may,'' would,'' will'' or similar expressions, we intend to identify forward-looking statements. Statements regarding the following subjects, among others, are forward-looking by their nature: our business and investment strategy; our ability to accurately forecast the payment of future dividends on our common and preferred stock, and the amount of such dividends; our ability to determine accurately the fair market value of our assets; availability of investment opportunities in real estate-related and other securities, including our valuation of potential opportunities that may arise as a result of current and future market dislocations; our expected investments; changes in the value of our investments, including negative changes resulting in margin calls related to the financing of our assets; changes in inflation, interest rates and mortgage prepayment rates; prepayments of the mortgage and other loans underlying our mortgage-backed securities, or MBS, or other asset-backed securities, or ABS; rates of default, delinquencies, forbearance, deferred payments or decreased recovery rates on our investments; general volatility of the securities markets in which we invest; our ability to maintain existing financing arrangements and our ability to obtain future financing arrangements; our ability to affect our strategy to securitize residential mortgage loans; interest rate mismatches between our investments and our borrowings used to finance such purchases; effects of interest

Business

Item 1. Business The Company We are a publicly traded REIT that is primarily engaged in the business of investing directly or having a beneficial interest in a diversified portfolio of mortgage assets, including residential mortgage loans, Agency RMBS, Non-Agency RMBS, Agency CMBS, business purpose and investor loans, and other real estate-related assets. The MBS and other real estate-related securities we purchase may include investment-grade, non-investment grade, and non-rated classes. We use leverage to increase potential returns from our investments. Subject to maintaining our REIT status and exemption from registration under the 1940 Act, we do not have any limitations on the amounts we may invest in any of our targeted asset classes. Our principal business objective is to provide attractive risk-adjusted returns through the generation of distributable income and through asset performance linked to mortgage credit fundamentals. We were incorporated in Maryland on June 1, 2007 and commenced operations on November 21, 2007. Our Investment Strategy We make investment decisions based on various factors, including expected cash yield, relative value, risk-adjusted returns, credit fundamentals, macroeconomic considerations, supply and demand, credit and market risk concentration limits, liquidity, cost of financing and financing availability, as well as maintaining our REIT qualification and our exemption from registration under the 1940 Act. Our primary source of income is net interest income from our investment portfolio. Net interest income is the interest income we earn on investments less the interest expense we incur on borrowed funds. Our investment strategy is intended to take advantage of opportunities in the current interest rate and credit environment. We adjust our strategy in response to changing market conditions by shifting our asset allocations across various asset classes as interest rate and credit cycles change over time. We believe

View Full Filing

View this 10-K filing on SEC EDGAR