Tag Archive for CIM

CIM, a good money holder with high returns

I feel like lately I’ve been on a high yielding binging spree… First I recommended LINN Energy, and now comes another semi-controversial company who’s been on my radar for a few years but I’ve always feared getting into: Chimera Investment Corporation (NYSE: CIM).

Lets start with a quick introduction…

CIM is a mREIT (mortgage REIT) that’s externally managed by Fixed Income Discount Advisory Company (FIDAC) which is owned by Annaly Capital Management (NYSE:NLY). The whole purpose behind CIM really is to allow NLY to invest in riskier instruments that aren’t guaranteed by government equities or groups like Freddy Mac or Fannie Mae (such as residential mortgage-backed securities, residential mortgage loans, real estate-related securities, etc. rather than physical real estate).

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