Chimera Investment Reports Q3 2026 GAAP Net Loss Amid Interest Rate Volatility
Chimera Investment (CIM) reported a significant GAAP net loss of $193.7 million, or $2.31 per diluted common share, for the third quarter of 2026. The loss was primarily driven by higher interest rates and wider mortgage spreads, which negatively impacted asset valuations. Consequently, the company's book value fell to $14.82 per share, a 16.5% decline from the previous quarter due to market volatility and rising Treasury yields. Despite these valuation headwinds, Chimera's subsidiary, HomeXpress Mortgage, saw a 27% year-over-year increase in funding volume, reaching $1.12 billion. The company is actively repositioning its Agency MBS portfolio by moving into higher coupon securities to shorten duration and manage risk. Additionally, the firm launched its inaugural Prism Capital conduit securitization following the quarter's end to capitalize on non-QM loan originations.
Topics: Book Value Decline Funding Volume GAAP Net Loss Leverage Ratio Mortgage Spreads
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