A Preferred Share Worth Scrutinizing From Chimera
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Chimera's preferred share CIM-A, with an 8% coupon rate and 8.6% strip yield, is considered unattractive above $23.20 due to limited upside and better alternatives. Baby bonds from Chimera offer superior benefits, including mandatory interest payments and over 9% yield to maturity.

December 07, 2024 | 12:30 pm
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Chimera's preferred share CIM-A is not recommended above $23.20 due to limited upside and better alternatives like baby bonds with higher yields.
The article highlights the limited upside of CIM-A and suggests that baby bonds from Chimera offer better investment opportunities with higher yields and mandatory interest payments. This negative outlook on CIM-A could lead to a short-term decrease in its attractiveness and price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80