Chimera Investment Corporation 9.250% Senior Notes due 2029 (CIMO)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I view CIMO as a senior note, not the common equity. The issuer is a 39-employee mortgage REIT holding mortgage loans and mortgage-backed securities, so the key question is not a durable competitive moat—there is little evidence of one—but whether the spread business can cover debt. FairStock’s company figures at the 2026-10-26 close show P/B 0.77, ROE 8.38%, ROCE 1.64%, and D/E 3.75; those speak to issuer credit, not direct note valuation. The note itself is $25.15, with a 9.250% coupon due 2029. Filed results show net income of $126.1M in FY2023, $176.1M in FY2024, and $230.5M in FY2025. That looks like progress, and FairStock labels it a TURNAROUND based on returning to profit after a loss within three years. But the path is uneven: in fiscal Q1 2026, the quarter ended 2026-03-31, net loss was $43.9M and diluted EPS was -$0.78; in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $17.4M but diluted EPS was still -$0.05. Revenue is n/a in the provided filings, so I cannot verify top-line growth. The coupon is the main attraction, but at $25.15 within a $24.65-$25.85 range, the note trades near fair value, not at a distress bargain. I would want a margin of safety from balance-sheet strength and steady coverage; here the high coupon is compensation for high leverage and volatile REIT earnings.

In plain English: Chimera Investment Corporation owns mortgage loans and mortgage-backed securities. It is a small, heavily borrowed mortgage real estate company: full-year profits rose from $126.1 million in 2023 to $230.5 million in 2025, but it lost $43.9 million in the first quarter of 2026 before earning $17.4 million in the second. The 9.25% senior notes due 2029 trade at $25.15, near the middle of their 52-week range; the price looks fair rather than cheap, and the high interest rate reflects real credit and rate risk.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer