Chimera Investment(CIM)2025-02-19 21:59Investment Portfolio - As of December 31, 2024, the investment portfolio consisted of approximately 88% residential mortgage loans, 8% Non-Agency RMBS, and 4% Agency MBS, compared to 91%, 8%, and 1% respectively in 2023[45] - The residential mortgage loan portfolio primarily includes reperforming loans that have been outstanding for over 120 months and have a history of delinquent payments[46] - The company has invested in residential mortgage loans to securitize them or retain them in the investment portfolio, financing through warehouse facilities and repurchase agreements[49] - The investment strategy includes acquiring Non-Agency RMBS, which are typically certificates created by the securitization of pools of mortgage loans[54] - The investment guidelines restrict any single industry from representing more than 20% of the portfolio's aggregate risk exposure[63] Financial Strategy - The debt-to-equity ratio was 4.0:1 as of December 31, 2024, indicating a leveraged financing strategy[63] - The company may evaluate revolving securitization structures for financing its RTLs in the future[47] - The company intends to maintain compliance with REIT regulations by distributing at least 90% of its annual taxable income to stockholders[67] Workforce and Diversity - As of December 31, 2024, the company had 77 full-time employees, with 36 added through the Palisades Acquisition, indicating a significant increase in workforce[78] - 61% of the workforce is either gender or racially diverse, reflecting the company's commitment to diversity and inclusion[78] - The company focuses on attracting and retaining employees through competitive financial benefits and internal training programs[76] - The company provides competitive compensation and benefits, including a 401(k) retirement plan with a company match and comprehensive healthcare benefits[77] Compliance and Regulation - The company holds all required licenses or exempt status through two wholly owned subsidiaries in 21 states as of December 31, 2024, ensuring compliance with regulatory requirements[74] - The company is registered with the SEC as an investment adviser under the Advisers Act, which imposes fiduciary duties and disclosure obligations[73] - The company engages third parties for independent reviews of mortgage files to assess credit underwriting and compliance[51] Cybersecurity - The Audit Committee and Risk Committee oversee management of cybersecurity risk, receiving regular reports on the company's cybersecurity program[246] - The Chief Information Security Officer (CISO) has over 25 years of experience in information technology, ensuring strong leadership in cybersecurity matters[247] - The Incident Response Team coordinates responses to cybersecurity incidents, involving both internal and external resources as necessary[248] Competition - The company competes with various entities including mortgage REITs and investment management firms, many of which are significantly larger and have greater access to capital[79]