Chimera Investment Corp
The end of the carry trade — Part 5
Back to Part 4 Impact on mortgage REITS The Treasury Department Financial Stability Oversight Council report mentioned the mortgage REIT sector specifically as at risk for a convexity event. A convexity event comes into play when interest rates move sharply. Because borrowers can prepay their mortgage without penalty, mortgage-backed securities are difficult to hedge in […]
Initial jobless claims jump
Initial jobless claims rose to an annualized rate of 360,000 for the week ended May 10th Initial jobless claims are one of the few labor market indicators that are released every week. Unemployment is a profound driver of economic growth, and persistent unemployment has been the Achille’s heel of this recovery. While it seems like […]
Consumer confidence ticks down as Americans fret the economy
The Conference Board Consumer Confidence Index fell to 79.7, from an upward-revised 81.8 in August. (Consumer confidence in 1985 was 100.)
Mortgage REITs Rose among the Volatile Market
The week ending December 24, 2015, reaped positive results for all of the mortgage REITs. The VanEck Vectors ETF Trust (MORT) ended with returns of 6.1%.
Chimera posts growth in third quarter profit and interest income
Chimera’s core earnings grew to $116 million compared to $93 million in the year-ago period. Growth was mainly due to an increase in net interest income.
What Are Leon Cooperman’s Top Holdings?
In Q3, billionaire investor Leon Cooperman’s top five holdings were Fiserv, Alphabet, United Continental, Chimera Investment, and Cigna.
Capacity Utilization falls in May
Capacity utilization is a bellwether of economic activity Capacity utilization is a good top-down macroeconomic indicator, which helps forecast the labor market, final demand, consumption, and inflation. While manufacturing is no longer the primary driver of the U.S. economy, it still influences the economy to a large degree, particularly for unskilled workers. U.S. manufacturing is […]
Consumer Confidence dips in May but still improving.
The Thomson Reuters/University of Michigan Consumer Confidence Index is a leading indicator for the U.S. economy The Thomson Reuters/University of Michigan Consumer Confidence Index is an important indicator of the consumer’s perception of the U.S. economy. Similar to other consumer confidence measures, it asks consumers about their views on the current economic conditions, and their […]
Weekly Realist real estate roundup (Part 6)
Back to Part 5 After a break last week, bonds have a more data-heavy week There’s more economic data on Thursday this week than there was all of last week. Earnings season is beginning to wind down, with only Chimera Investment Management (CIM) expected to report. Economic data this week Monday, August 12 Monthly budget statement […]
The end of the carry trade — Part 2
Back to Part 1 “The carry trade” is used to describe an investment technique based on using leverage to generate returns from low-risk investments The carry trade happens when an investor squeezes a higher return out of an investment using leverage. As we’ve seen in Part 1, using leverage (in other words, borrowed money) increases […]
Why initial jobless claims jumped on the government shutdown
Initial jobless claims increased to an annualized rate of 374,000 for the week ended October 4. Unemployment has been the Achilles’ heel of this recovery.
It appears affordable care isn’t adding to employment costs
These days, the Fed isn’t all that concerned about inflation raging out of control. Indeed, it would like to see higher inflation.
Highlights of Omega Advisors via 13G filings
Omega Advisors’ top holdings at end of third quarter were American International Group (AIG), Citigroup (C), SiriusXM (SIRI), and Chimera Investment (CIM).
In Spite of Falling Unemployment, the Fed Lifts Its Forecast
After the June FOMC meeting, the Fed forecast that 2015 unemployment would come in at 5.2%–5.3%, an increase from 5.0%–5.2% forecast in March. This is somewhat surprising.
Omega Advisors lowers position in Chimera Investment
Chimera Investment invests in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes. Chimera declared a fourth-quarter 2014 cash dividend of $0.09 per common share.
Initial jobless claims fall to 324,000
Initial jobless claims rose to an annualized rate of 324,000 for the week ended April 26th Initial jobless claims are one of the few labor market indicators that are released every week. Unemployment is a profound driver of economic growth, and persistent unemployment has been the Achilles heel of this recovery. While it seems like […]
Week Ahead: Job Openings Are the Highlight of a Data-Light Week
This week, investors will still be digesting the jobs report from last Friday. The biggest data points will be the JOLTS jobs report and retail sales.
Hotel and Mortgage REITs Took a Plunge
Within the iShares US Real Estate ETF (IYR), mortgage and hotel and resort REITs were the worst-performing subgroups of the week.
Mortgage Applications Rose despite Rate Hike
The Federal Reserve’s decision to increase the federal funds rate by 0.25% on December 16, 2015, had minimal impact on the mortgage volume.
Why Did REITs Rise as the Fed Increased the Rates?
Residential REITs derive their revenue from rentals and apartment sales. Rising rates could increase the borrowing cost for investors. The asset’s value falls.
Resource Capital Rallied 26.8% with Dividend Announcement
For the week ended December 18, the iShares Mortgage Real Estate Capped ETF returned 4%. Resource Capital and New Residential Investment were top performers.
The Rate Hike’s History and Its Impact on Mortgage REITs
Mortgage REITs like New Residential Investment, Chimera Investment, and American Capital Agency will witness the impact of a rate hike for the first time.
Omega Advisors exits position in Halliburton
Halliburton announced that it would lay off 5,000 to 6,500 employees due to declining oil and gas exploration and production activity amid falling oil prices.
Omega Advisors decreases position in Chimera Investment
Chimera Investment invests in residential mortgage loans, residential mortgage-backed securities (or RMBS), real estate-related securities, and various other asset classes.
Omega Advisors increases position in Ashland
Omega Advisors has increased its position in Ashland by over $69 million. The position now accounts for 1.74% of the fund’s total 4Q14 portfolio.
Omega Advisors trims position in Harbinger Group
Omega Advisors trimmed its position in Harbinger Group (HRG) this month. Omega holds 10,811,163 shares, a 5.38% stake, via an amended 13G filing.
Omega Advisors further reduces its stake in Chimera Investment
Omega Advisors further lowered its position in Chimera Investment (CIM) during the current quarter.
Initial jobless claims fell slightly, good for non-agency REITs
Initial jobless claims decreased to 339,000 for the week ended November 8. The financial industry is laying people off as the mortgage business dries up.
Week in preview: Expect two big homebuilder earnings reports
Next week is all about the FOMC (Federal Open Market Committee) meeting The FOMC meets on Tuesday and Wednesday, and we should have the announcement on Wednesday afternoon around 2:00 p.m. Taper? By how Much? Which securities? The Fed will also release its forecast of economic activity. The Fed has been consistently over-optimistic on economic growth, and […]