NLY - Chimera Investment: Re-Rating Opportunity And A 10% Covered Yield
2024-02-19 23:49:05 ET
Summary
- Chimera Investment Corporation's stock fell to new lows, but its dividend is now well-covered by earnings, making it a compelling risk/reward opportunity.
- The company's portfolio consists mainly of residential mortgage loans, which provide recurring interest income and have seen a decline in delinquencies.
- Chimera Investment is selling at a significant discount to book value and has the potential for a stock re-rating in 2024.
A higher-than-expected reading of inflation data on Tuesday triggered a minor meltdown for stocks, including in the high-yield sector that consists of mortgage real estate investment trusts and business development company....
Chimera Investment: Re-Rating Opportunity And A 10% Covered Yield