Chimera Investment Corporation · NYSE:CIM
Chimera Investment — Investor Presentation (May 2016)
17 slides from Chimera Investment's investor presentation, May 31, 2016
Slide 1: Investor Presentation
INVESTOR PRESENTATION NYSE: CIM June 1, 2016 Information is unaudited, estimated and subject to change.
Slide 2: Disclaimer
DISCLAIMER This presentation includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely
Slide 3: Chimera Investment Corporation
Chimera Investment Corporation Information is unaudited, estimated and subject to change. We develop and manage a portfolio of leveraged mortgage investments to produce an attractive quarterly dividend for shareholders Recent Corporate Developments Chimera Announces Internalization of Management Str
Slide 4: Total portfolio composition
Total portfolio composition Information is unaudited, estimated and subject to change. 73% of CIM’s equity capital is allocated to mortgage credit All data as of March 31, 2016 Financing excludes unsettled trades Residential Mortgage Credit PortfolioTotal Assets: $8.2 Billion(1) Agency MBS Portfolio
Slide 5: Agency MBS Portfolio and Funding
Agency MBS Portfolio and Funding Information is unaudited, estimated and subject to change. The majority of Chimera’s Agency Portfolio consists of highly liquid pass-through securities All data as of March 31, 2016Coupon is a weighted average for Commercial and Agency IONotional Agency IO was $4.0 b
Slide 6: Interest Rate Sensitivity
Interest Rate Sensitivity Information is unaudited, estimated and subject to change. Chimera hedges interest rate risk with interest rate swaps and financial futures All data as of March 31, 2016. (1) Projected Percentage Change in Portfolio Value is based on instantaneous moves in interest rates. D
Slide 7: Residential Mortgage Credit
Residential Mortgage Credit Portfolio Information is unaudited, estimated and subject to change. Chimera’s residential credit portfolio provides a high net interest spread Gross Asset Yield: 8.6% Financing Cost: 3.4% Net Interest Spread: 5.2% Net Interest Margin: 5.8% Credit Portfolio Composition Q1
Slide 8: Unique Mortgage Credit
Unique Mortgage Credit Portfolio Information is unaudited, estimated and subject to change. Key transactions distinguish Chimera from other Mortgage REITs 8
Slide 9: Re-Remic Subordinate Bond
Re-Remic Subordinate Bond Portfolio Information is unaudited, estimated and subject to change. Chimera creates long, term-funding through securitization The Securitization Process $100mm Non-Agency Mortgage Bond $100mm Trust(Non-Agency RMBS Collateral) $60mm Senior A Note Sold to 3rd party Deposit L
Slide 10: Re-Remic Subordinate Bond
Re-Remic Subordinate Bond Portfolio Information is unaudited, estimated and subject to change. The average yield on consolidated retained subordinate bonds is over 17% Re-Remic subordinate bonds have had slow prepayments considering the low interest rate environmentChimera expects the subordinate bo
Slide 11: Springleaf Seasoned Loan
Springleaf Seasoned Loan Portfolio Information is unaudited, estimated and subject to change. Chimera acquired $4.8 Billion Seasoned Loan Portfolio previously securitized by Springleaf Financial Springleaf Acquisition$ 4.8 billion seasoned loans7 original securitizations $775 million equity commitme
Slide 12: Risk Retention Seasoned Loan
Risk Retention Seasoned Loan Portfolio Information is unaudited, estimated and subject to change. Risk Retention Rule creates an opportunity for Mortgage REITs who have permanent capital Risk Retention RuleAll new mortgage securitizations must have an equity sponsorDeal Sponsor to have meaningful “s
Slide 13: 2016 Risk Retention Securitization
2016 Risk Retention Securitization Portfolio Information is unaudited, estimated and subject to change. Chimera expects high single digit yields on portfolio without leverageChimera expects to achieve mid-to-high teen yields with added recourse leverageDeals are callable in 4 years Estimated GAAP le
Slide 14: Small Balance Residential Loan
Small Balance Residential Loan Portfolio Information is unaudited, estimated and subject to change. Chimera has one of the largest seasoned, performing, small balance residential loan portfolios in the Mortgage REIT Industry Small Balance Residential Loan Portfolio Total Current Unpaid Balance $8.8
Slide 15: Small Balance Residential Loan Portfolio Considerations
Small Balance Residential Loan Portfolio Considerations Information is unaudited, estimated and subject to change. 15
Slide 16: Summary
Summary Information is unaudited, estimated and subject to change. Franchise Mortgage Assets Positive Macro Economic Environment Opportunity for Permanent Capital Chimera has a unique portfolio of high yielding assets, created through securitization, which would be difficult to recreate in size and
Slide 17: chimerareit.com
chimerareit.com
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