Benzinga | Apr 29, 2021 05:09PM EDT

Chimera Investment Corporation Sponsors Two Residential Mortgage Loan Securitizations

Chimera Investment Corporation (NYSE:CIM) sponsored two securitizations totaling $977.1 million, $859.7 million CIM 2021-R3 and $117.4 million CIM 2021-NR3 of seasoned residential mortgage loans. The mortgage loans for both securitizations were from the termination of Chimera's CIM 2017-1, CIM 2017-5, and CIM 2017-6 securitizations (the "Prior Securitizations").

Securities issued by CIM 2021-R3, with an aggregate balance of approximately $730.8 million, were sold in a private placement to institutional investors. These senior securities represented approximately 85% of the capital structure. Chimera retained subordinate interests in securities with an aggregate balance of approximately $128.9 million and certain interest-only securities. Chimera also retained an option to call the securitized mortgage loans at any time beginning in April 2024.

Securities issued by CIM 2021-NR3, with an aggregate balance of approximately $82.1 million, were sold in a private placement to institutional investors. These senior securities represented approximately 70% of the capital structure. Chimera retained subordinate interests in securities with an aggregate balance of approximately $35.2 million. Chimera also retained an option to call the securitized mortgage loans at any time beginning in April 2022.

Chimera's expected weighted average cost of debt of these two securitizations is 2.12% compared to a weighted average cost of debt of 4.14% for the Prior Securitizations.