The REIT Forum

The REIT Forum

Share this post

The REIT Forum
The REIT Forum
Adding CIMN To Coverage
Copy link
Facebook
Email
Notes
More

Adding CIMN To Coverage

ColoradoWealthManagementFund's avatar
ColoradoWealthManagementFund
May 30, 2024
∙ Paid
5

Share this post

The REIT Forum
The REIT Forum
Adding CIMN To Coverage
Copy link
Facebook
Email
Notes
More
Share

We’re adding another baby bond to coverage.

Chimera Investment Corporation (CIM) has a baby bond (CIMN).

Key metrics:

  • Coupon rate: 9%

  • Callable: 5/15/2026

  • Maturity: 5/15/2029

  • Current price: $24.50

  • Initial baby bond risk rating: 2.5

  • Yield to maturity: 9.95%

  • Yield to call: 10.66%

  • Expected first dividend: About $.525.

Note: Baby bonds are graded on a harsher scale for risk rating. 

CIMN should be more stable than other types of investments with a similar risk rating.

Because baby bonds typically mature in about 5 years, a smaller price swing can have a significant impact on the yield to maturity. 

That generally leads to less price volatility.

Note: The yield to maturity and yield to call are materially enhanced by the discount to face value. They also benefit from the dividends being paid out quarterly. Compounding leads quarterly payments to create a yield in excess of the coupon rate.

Disclosure: I am long CIM-B. We do not currently have any positions in any of the other CIM securities. I may place any trades (buying or selling) in any of the CIM securities at any point. I foreshadow potential trades explicitly for paid members.

Notes About CIMN

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 ColoradoWealthManagementFund
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More