UPDATE: Bank of America Downgrades Chimera Investment to Underperform on Further Downside Lying Ahead

Bank of America reduces its rating on Chimera Investments

from Neutral to Underpeform and reduces its price objective from $2.80 to $2.50. Bank of America comments, "We are downgrading Chimera Investment (CIM) to Underperform from Neutral, given the likelihood for further dividend reductions and possible BV erosion. CIM recently reduced its quarterly dividend payout to $0.09 from $0.11 and reported lower economic BV of $2.76, as of Q1'12. CIM is already down 6% on the news, though the dividend trajectory argues for further downside risk, in our view." CIM closed at $2.74 on Wednesday.