Chimera Investment Announces $1.5 Billion Residential Mortgage Loan Securitization

Chimera Investment Corporation CIM disclosed it sponsored CIM 2016-1: a $1.5 billion securitization of seasoned residential mortgage loans on April 29. According to the company, securities with an aggregate balance of about $1.275 billion were sold through a private placement to institutional investors.

Chimera indicated it retained interests in securities with an aggregate balance of approximately $225 million. The company also retained an option to call the outstanding notes at any time commencing from April 2020.

The company was engaged investing in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes. Therefore, its main objective was to generate income from the spread between yields on its investments and its cost of borrowing and hedging activities.

Shares of the company closed 0.28 percent higher on Friday.