- Chimera manages a portfolio of leveraged mortgage assets dominated by securitized mortgage loans.
- Over the last decade, households have significantly reduced their exposure to mortgages, and with interest rates rising, convention would suggest this trend would continue.
- However, home prices are likely to continue to rise, making households more likely to increase their exposure to mortgages, rather than diminish it.
- Chimera’s fundamentals show that the company has the ability to increase dividends in the next quarter, having dramatically grown its warchest in the last 2 years.
- Chimera is trading at its lowest levels in 2014, providing investors with an attractive margin of safety.
For further details see:
Investors Are Missing Out On Chimera's 11% Dividend Yield