Chimera Investment: Discount To Book Value Is Attractive

The Good Brigade Investment Thesis Pessimism surrounding Chimera Investment (NYSE:CIM) has brought the stock to a 5-year low, at around $12 per share at the time of this writing. As a mREIT, this isn't too unusual, as a lot of mortgage REITs trade at cheap valuations due to rising rates in the past that have crushed book values. However, at this price the discount to book value is way too wide, and I think future dividend cuts are unlikely. I think book values and dividends have stabilized, which should sup ...