Cherry Hill Mortgage Investment Corporation Series B Still Attractive Despite Floating Rate Risk
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Cherry Hill Mortgage Investment Corporation is facing challenges due to high interest rates affecting its net interest income and common share dividends. Despite increasing RMBS holdings and leverage, shareholder equity has decreased. Preferred dividends remain covered, but common share dividends are at risk.
November 18, 2024 | 11:00 pm
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Cherry Hill Mortgage Investment Corporation is under pressure from high interest rates, affecting net interest income and common share dividends. Preferred dividends are secure, but common dividends are at risk.
The high interest rates are reducing net interest income, which is crucial for CHMI's profitability. This has led to pressure on common share dividends, making them at risk. Although preferred dividends are covered, the overall financial health is concerning, leading to a likely negative impact on stock prices.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100