Comments on: Non-agency mortgage REIT Chimera (CIM): Collect 15% in dividends while you wait for the stock to double or triple? http://financialhippie.com/2009/08/non-agency-mortgage-reit-chimera-cim-collect-15-in-dividends-while-you-wait-for-the-stock-to-double-or-triple/ the long and the short of it... Tue, 06 Oct 2009 13:05:57 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: admin http://financialhippie.com/2009/08/non-agency-mortgage-reit-chimera-cim-collect-15-in-dividends-while-you-wait-for-the-stock-to-double-or-triple/comment-page-1/#comment-15 admin Tue, 01 Sep 2009 01:15:28 +0000 http://financialhippie.com/?p=233#comment-15 I own NLY too... CIM is more of a late cycle play, in that... later in the cycle as the fed tightens, NLY's spread will narrow, they will have to increase leverage also to maintain ROE. But CIM has no or very little repo funding and if the fed is tightening that means things are getting better, CIM should be able to maintain spread and even increase leverage through non recourse methods. I would say today is a risk aversion trade, China being down 7%... but CIM held up pretty well against the tape... light volume sell off in the morning followed by buyers coming in the afternoon and buying all the way into the close... I own NLY too… CIM is more of a late cycle play, in that… later in the cycle as the fed tightens, NLY’s spread will narrow, they will have to increase leverage also to maintain ROE. But CIM has no or very little repo funding and if the fed is tightening that means things are getting better, CIM should be able to maintain spread and even increase leverage through non recourse methods.

I would say today is a risk aversion trade, China being down 7%… but CIM held up pretty well against the tape… light volume sell off in the morning followed by buyers coming in the afternoon and buying all the way into the close…

]]> By: hootrlvr http://financialhippie.com/2009/08/non-agency-mortgage-reit-chimera-cim-collect-15-in-dividends-while-you-wait-for-the-stock-to-double-or-triple/comment-page-1/#comment-14 hootrlvr Tue, 01 Sep 2009 00:04:22 +0000 http://financialhippie.com/?p=233#comment-14 why not own NLY, arent they the best in class. i'd worry we get another major risk aversion trade in which CIM gets spanked. where on earth they gonna get the needed leverage? seems like a pipe dream, but i hear ya, if it happens its a homerun. why not own NLY, arent they the best in class. i’d worry we get another major risk aversion trade in which CIM gets spanked. where on earth they gonna get the needed leverage? seems like a pipe dream, but i hear ya, if it happens its a homerun.

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