CHMI - Cherry Hill Mortgage Investment: One Preferred Is Better Than The Other
2024-03-12 07:04:40 ET
Summary
- Cherry Hill Mortgage Investment Corporation is struggling with the high interest rate environment, resulting in a swing from net interest income profit to a loss.
- The company's balance sheet shows increased investment in residential mortgage-backed securities and a shift towards short-term financing.
- The preferred B series shares offer a higher dividend yield and better preservation of capital compared to the common shares.
Cherry Hill Mortgage Investment Corporation ( CHMI ) is an mREIT that earns income through the investment of mortgages. Like its peers, the company utilizes leverage (borrowing) to invest in and earn income from its assets. Since I last wrote about Cherry Hill two years ago , the restrictive rate regime put into place by the Federal Reserve has created a challenging environment for the company, but I believe that income investors can earn a great return with an investment in Cherry Hill’s B series preferred shares ( CHMI.PR.B )....
Cherry Hill Mortgage Investment: One Preferred Is Better Than The Other