CIM - Earnings call transcript Q1 2020 | Chimera Investment Corporation

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Chimera Investment Corporation First Quarter 2020 Earnings Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions]

to Relations. floor pleasure Mohr, to my Investor of now turn over the Emily It's ahead. go Please

Emily Mohr

Thank you, thank Quarter Holly, and Earnings Chimera's participating Conference First in Call. you everyone for

Harbor I'd review like Before we the begin, Safe statements. to

in which During Risk that predictions, or most statements filings. are risks are our are subject this statements on Factors current events. uncertainties, about projections, call, to making other will and forward-looking are we annual expectations the which quarterly future based statements section outlined These in be and recent and assumptions SEC

forward-looking results We forward-looking Actual differ earnings our events and may in annual disclaimer you materially release the from read and these addition to quarterly statements. to in our encourage filings. statement

measures. for to earnings During filings and to SEC reconciliation Please refer GAAP we the non-GAAP call today, measures. supplement our most may the comparable also financial discuss

this and contain only earnings Additionally, call undertake not as the any this or information. the revise information accurate call. date of conference content of this obligation to specifically that do is update of may disclaim We time-sensitive

turn will our Executive Chief and Please over Matthew conference Lambiase. I President Officer, go to ahead. the now

Matthew Lambiase

call to first Investment Welcome Corp. the Chimera for earnings quarter

open the CFO; the and Head our Mohit morning this Rob Colligan, up call Capital Markets. Operating CIO; our of for brief our Joining is then Vic some on Choudhary me comments Chief call our the questions. Yarlagadda, Marria, Officer; Falvo, make We'll

issues. at healthy that the not families We like have in and are as I'd significant March implemented plan saying hope work you stay employees and any Chimera contingency early working experienced all your by all that, well. from safe technology our to healthy and remotely home. start We and

markets. safer assets an fear sold economic the likely U.S. investors reinvesting and resulting into of cash. investments, Many bring would their credit COVID-XX such extreme notes income an felt risk-off conditions for pandemic March, T-bills, uncertainty month the the the Treasury lockdowns and that, environment while fixed of government-mandated created a near-catastrophic recession and as In they

managers Credit-focused bond volatility their funds of movements. and into holdings ETFs Treasuries and fund price markets from the heightened All fixed apart saw thin outflows downward sharp dislocations. experienced sectors market to sell forcing income market U.S. record creating

leverage time assets used forced yet March very of they meet strategies margin attempted who their in from were were were experienced swift lenders. shorter witnessed XXXX much investors and also part frame. crisis, to to as Market occurred of similar movements in the over as Some calls that their repo sell conditions XXXX, price to a

respond. was announced economic a Reserve federal to on Federal to was The funds combat night XX, cut to And Sunday March they X%. worsening quick The many rate initiatives conditions. the

implemented revive for XXXX plans and mortgage-backed funding the commercial programs paper like and from securities and TALF treasuries playbook. the facility purchase agency will Reserve Federal New were

largely actions order Liquidity Fed's securities. to not many Federal bringing fashion programs Reserve offered fixed for by were were secondary trade including challenged The areas they market. continue credit the and the mortgage-backed to of agency helpful income in securities in residential a market,

directly by crisis. individuals, the has where than different economy the part with was CARES its in the problems passing help Fed swiftly the depression. to it did the economic Like the since of the prior intent vastly U.S. abrupt today created impacted The also pandemic. to most great is economy Congress COVID-XX worst the shutdown Act U.S. COVID-XX by The some

an forbearance in that programs. we mortgage six applied the X.X% had unemployment coupled lasting past with this and weeks, these created persist market February. unemployment the to have a negative homeowners for people impacts the In will of have may forbearance contrast near-term, decided immediate for mortgage to newly soften U.S. on the take have But rate Many housing XX period. In blow to sharp U.S. extended benefits should initiatives government advantage they the the million economy. mortgage

a sheet years, balance our value, has our and the to margin lenders past several to Chimera the period dividends. taken our initiatives meet number calls in that Over all protect from book of this to repo helped difficult pay it

agency always dual legacy our source income mortgage-backed rather purposes, a source secondarily of primarily Our as securities spread than has portfolio selling and liquidity a as higher-yielding served of assets.

X.X our we securities XX% year-end. leverage, down sold pass-through and portfolio. deleverage first our debt quarter agency further ended overall This from to at down pay times the We quarter, recourse

Over acquired $XX low-loan approximately a seasoned non-agency balance portfolio and the past mortgages. or purchased we securities decade billion of legacy

as securitization, immune funded it a not to differentiated Chimera's but mortgage been through which historically protect consistent has company driver diligently industry. worked has leverage, for price earnings This portfolio, movements. portfolio makes well portfolio and We've as been our of repo REIT the in is downward to this

pricing economy the the we're restarting remain future A than currently the experiencing. fundamental at reverts We hopeful its of that of point pricing value rather in some these illiquid to the assets good which in should in the we recapturing improvement in our book spreads a lead lost an experienced value quarter. could be the to a believe of process, first and step credit

We've million months capital two structure. of facilities further side repo diversifies debt, for and assets been the over busy we've transactions executing of on liability our of our executed $XXX March, mortgage balance which $XXX million totaling issued $XXX In convertible liability securitizations credit last the two arranged our Chimera longer-term we million. sheet. In and

are While the able to capital crisis, pricing we markets. never a to is be access in heartened ideal

clear forward, hard is to up. on have how a economy going Looking it U.S. as the to perform it's back view starts

going and difficult We to love be back that the recovery, believe February. we'll uncharted an likely waters to would be to shaped in severe get we V but to were it's a changes most where We habits. social are back regard longer and unemployment in to high in take with to

we have the on totals mortgage forbearance our be housing market be term. clarity uncertainty will and will duration a The until in of challenging portfolio. very and credit near we adds in Mortgage and also degree the the mortgage outlook forbearance cautious high to more

Given conditions all for until will earnings few to these quarters the predict clarify. be the next complexities, difficult economic

liquidity, keeping on extending financing our portfolio our focused maintaining We will and terms credit intact. remain

through navigating are recover that the more but turbulent will market when restarts the and people a get return are normal period, mortgage We footing and hopeful the to economy to U.S. economy will we very work. back very

turn And with over to that, Mohit. I'll it

Mohit Marria

Matt. you, Thank

COVID-XX fell with over as to period a quarter of The Reserve note in basis XX-year cut a points first points by The X.XX% quarter part pandemic. Federal XXX period was basis yield year end market. overnight the two-week income its response XXX at first of began the extremely volatile U.S. rate The XXXX an the X.XX%. lending and treasury its to fixed the of

a margin in rate securities increase most large products. meet rates, drop interest sell prices to existing large Investors lower imbalance utilize leverage that in flight of their at fixed to and investor were across transactions. to funds repo The calls income quality sharp forced and on volatility

of unpledged clear sales has management immune. our was and Chimera's date. Chimera In as of Agency is not met of outright a part our assets the cash margins to first multifaceted. Chimera funding strategy. strategy utilized all balances, liquidity we successfully securities combination quarter overall

funding and for Our create utilizing to to continues primary has be been long-term our objective credit assets. securitization

had billion debt At securitized first nearly we quarter of the outstanding. end the $X.X of

And typically financing assets, new financing $XXX portfolio attractive effective when assets. post repo including facilities quarter which of mark-to-market totaling financing credit repo a facilities, added retained million. our end, we contain reduction use use two credit and maturity longer our management. counterparty these on non-Agency loans. assets, we Secondarily, more enables daily We features These on significant dates long-term and risk legacy securities

quarter. a months. And, of two XXXX-RX XXX. weighted loan has RX We XXX and priced successfully average in deals X% average loans debt. coupon securitization it this with continued warehouse. FICO from in with was sold loans a a strategy our $XXX We underlying cost March, securitization senior score million season weighted securities size our an The and reperforming with loan million loan XXX the we age X.XX% of CIM of of had average $XXX,XXX average

securitization. a call on March retained RX calendar Chimera the XXXX option

months. $XXX loans average RX was million sold FICO a a securities XXX. $XXX size underlying In an We senior addition million CIM and weighted with which debt. XXX $XXX,XXX average had in a average the average XXXX-RX with of coupon deal of of The we had securitized and X.XX% of X.XX% age weighted loan loan a cost

lowest interest of drop In yielding increased our pass-throughs. liquid the volatility our were pass-throughs been repo calls, needs. in margin the most of this billion X.X quarter rates, strategy and portfolio significant our part in to have liquidity portfolio meet always assets price to agency entire response and sold our These residential and we

notional futures balance agency also positions hedge We treasury $X.X all rate comprised our and interest swaps. on billion note of terminated U.S.

to years many Agency portfolio, which retained. us taken has The was CMBS accumulate

As quarter of billion. this end, $X.X the totaled portfolio

relative portfolio income These haircuts like We and and residential profile Ginnie the superior project in this and as continue spread convexity to well rates loans Agency have securities Agency of to traditional markets the financed repo the pass-throughs. similar pass-throughs. by generated Mae

valuable characteristics part end, began on as interest lockout are and assets quantitative Fed program. The After of these prepayment purchasing easing security when to their spreads penalties begin fall. trades unique MBS as quarter explicit rates of Agency tighten the

over end as recourse This XX% at Portfolio X.X the and three over activity last quarter company's quarter reduction X.X this months We XX% months. past represents leverage reduced the quarter XXXX. measured from recourse times at the ended third end significantly recourse down by year risk of leverage of the exposure times of at a has the and X.X leverage. six the times

important book component high-yield portfolio quarter. down marked our to value -- lower largest market current is have has value to down contributed which is of assets, Chimera's value, note marked our been conditions, have this It booked which and in due the to credit been

the Our security over ability value works its and pandemic. opt increases to for as this enables the portfolio way restarts retain current economy the through time to country opportunity

economic to remain cautiously forward move we As optimistic. the crisis, current we

mortgage And after and tenor repo for new the will past into opportunities credit to longer crisis, from the seek continue repo. we to resulting will decade. have maturities we seek as and the We space deploy for get as we housing more visibility investment into economics cash our

now will the over our to turn financial call results. discuss to I Rob

Rob Colligan

review first was $XX.XX of Thanks, per book quarter at end the financial Chimera's the Mohit. I'll first highlights the quarter. value for share. GAAP

the net GAAP $X.XX Our million loss or quarter per first was share. for $XXX

first the share. per $XXX core quarter basis net first the for On million. income million net for was Economic $XXX $X.XX or interest quarter was income a

first on assets interest-earning average was quarter, For X.X%. yield the the

interest cost was funds net our was average X% of X.X%. Our and spread

quarter last consistent Total quarter. fees were for for million recourse $XX.X expenses and ended first first quarter transaction the leverage was Expenses X.X:X. the with the leverage quarter at while excluding X.X:X, servicing

our both about to unencumbered stock information paid current assets. $XXX We the $XXX preferred currently cash is dividends common in provide Given have and and liquidity. market million. totaling we approximately additional after This environment, wanted million we

in a important public we Also that were we're $XXX convertible closed open happy bond capital the believe this to have liquidity us raised it's achieve market offering this to for markets April, that We and goal. million. in ample

balance to new finding continue and portfolio increase monitor to opportunities will in We and liquidity supporting our current assess market. liquidity opportunities and the

we'll concludes call questions. That open for the and our remarks now

Operator

you. from And to the question Suisse. Doug line of Instructions] come going Thank [Operator our Credit first is with Harter

Doug Harter

and you is kind of in portfolio how opportunity about of, – what deploy with you level right liquidity thinking the as guess, absence liquidity of the know, of capital? Agency the the kind Agency you just today Thanks. mentioned you're I about with Can you environment talk as liquidity RMBS of just, of portfolio kind the think just kind balancing that current acted in buffer, the of to -- hold do kind about how just

Matthew Lambiase

question. you thank yes, for Well, the

with at I think, at liquidity both spot securities. cash moment with and we are pretty the unleveraged good a

at stuff a could make is of at a market price to think make kind it's looking the trying and day-by-day in what market. forward. at kind loan it's now in dislocated. We're the that financing trajectories trying assets going be But you right about lockdown the of We're of with have I The the sure sure to you understand space. opportunities the us looking moment. of thing lot

really feel So, we've a now we out period chaotic good very us process market and liquidity start about to the positions and of look at is pretty come I to opportunities day-by-day settle deploying I to the moment. best capital. it, everything this cash we about think a and think I starting at our look our for just in it's down as think at And

we And start that's the There's is time our executing think of to a in a again. marketplace. securitizations lot process. out lot to loan a lot talking investors the securitization, can market I going we're It's opportunity. and that it's to of just of see us thinking about where providers this can a there. of now of is when overhang this space matter space in I everything think still lot that we again, happen. And of now. It's going a if We chaotic for get different think dislocated. we market capital how And there's spent and up time just in day-by-day coming a with very

Rob Colligan

add to addition of as over the Fed $X a far billion. that's in just and portfolio in the the CMBS core we of of is for to also CMBS a with the And Agency on Matt as disruption it form said event And the buying liquidity market. have have the April currently assets Agency what cash of unencumbered we as to still end us

Doug Harter

kind to are be assets kind that would Would funded that? kind or of the lockdown to guess of new assets? some And then just are securitize Matt comment thinking on about and financing that I by assets your just you looking that are of securitization. Great. how repo, about of for follow-up be that currently credit

Matthew Lambiase

a it's both. little think I of bit

couple it's think I a of things. actually

deal think done. you probably to get done, would what get can do to want a I you

lot So, -- buyers I think sense have that the don't on it's it's interesting want of an and to from a is they buy. a what senior we very clarity market

yes, I would the for looking very doing sense think we've them. the deal that are like we deals out at But loans I lot or I And make in there's been callable something think the a there. most package think lot exit of for have out may one sale right now. of It's upfront. of be that just market assets that of to available attractive securitization figure trying a

I… So

Rob Colligan

becomes XXXX of had our year over and to sort earnings eight going capital sort and our over were hopes the and we and structures. re-lever of that those the callable Yes. call for $X the again, billion calendar to deals Doug, last back focus UPB tap of XXXX markets

market open point with market once new and Matt's securitization we happened pause. again. sort of think to being the But stabilizes We evaluating are obviously in issue that on will that up what March still window

both the closing as on were But bonds of senior able attractive I levels. of from at the remarks midst two loans March sell successfully mentioned we lines. in did securitizations opening complete we the warehouse crisis pretty In our deal where to

think term not the the years. near-term may the addition securitizing but evaluating do over I assets to that be in further those available at and last lines are warehouse employed how the those down strategy we've we financing one by several pair re-lever

Doug Harter

guys Thank answer. for Great. you that

Operator

Thank you.

the question will next Eric with from of come KBW. line Our Hagen

Eric Hagen

portfolio? how it forbearance of guys I your morning And over What's and Good the so? the in think for should we asking portfolio in borrowers hope impact thanks. doing rate last you're forbearance the call Hey of well. overall the weeks been about or six

prime seasoned is that portfolio at is just probably sits just is us you there know profile us of the majority I Can what the in this some Thanks. but the give in loan balance it that within know give in there of jumbo breakdown what loan a investor of loans a -- there breakdown the I Additionally, there? properties. what's of can and you point? portfolio, some

Mohit Marria

just of the from pandemic as and We portfolio, rumin forbearance to March let's say in what went going Mohit. we started stride. through cycle Hey a our is materially as standpoint is Eric, do from was March in the nothing that on different this middle COVID think April uptick but experienced the was

April that May. of the government announcing took and they And people in programs those expect we probably more with advantage

rumin telling. the be cycle will next So, more

Ginnie. -- profile I given think of it GSE are and performing itself Fannie, it track will the portfolios the way the portfolio will the Freddie,

as So, stands more numbers materially QX on we could earnings but those today. we as call I it said, nothing report the as different get

is of in of majority mid-XXX is It's on vast XXX-plus It the lack over just and the the has effective FICO under portfolio Again, X%. the seasoning. re-performing. months portfolio

have the -- It of of in of not reported a the there. several balance the stuff over origination much consolidated of part of the years investor the is last company. we our some portion smaller that sheet, it's any so portfolio done new The not is numbers even

as nothing and May out. play deferral newly and far stuff a As we the of again think, expect choosing goes, materially I the pass. forbearance originated how that performance people when on through That's sort from the see April. performance we different And had will I seen uptick in like larger June we said

Eric Hagen

Got it.

think that. just flow cash then the are of you, Thank as cash in what we should and and the portfolio. for agency off how generally throw without to much able And Great. far flow the the Okay. portfolio rate as paydown about principal assets very

there's Now, balance by at having portfolio. strike structured. cash in point liquidity I in are natural the assets of portfolio and lot other a can sort a this an in of words, And flow and the subordinate that know agency that nature you

we should naturally reduce to you how flow on based the today? portfolio about So, cash will leverage ability just if looks what like with Thanks. the think

Matthew Lambiase

have we are way as up. locked our I I your far principal most limited mean point is portfolio risk as reinvestment mean securities the the given of structured, to

the cycle as even in on is standpoint have So re-REMIC secured and portfolio. entitled delevering $X.X as which far billion going well themselves as our portfolio performance interest receive again our structures debt from notice retained to of as The in men a all we goes. loan coming principal mentioned our on as I outstanding we paydowns anything through different the collections, April the didn't in collections

That go the how principal down. going delever to will number down right? as we're pay that's And the get

or principal of have lower overall mid/late system position is delevered post leverage. the dollar repo we from retained sort providers March up. place too time, gradually What also the the in leverage we've decrease in gone over is that that will coming have have haircuts also know that portfolio any spend took the On in is as

So, the going lever. I reduce also to think that's

those to you leverage So, the to you want available recourse least significant of amount have at term. in near

Eric Hagen

And following realized losses what the Got from quarter on then unrealized book some marks? percentage impact value opening the up the first was or it. versus of in comments just remarks,

Rob Colligan

come any sell out tomorrow. we didn't sell lower was financials sell, actually It see on we the realized loans agencies did added have didn't on you'll or some the obviously, disruption those. those would did because We those loss Of purchased mostly non-Agency them unrealized. We realized few lot our when we given sell that and levels that some agencies and had Yes. years ago had of market gains this portfolio a of the an unrealized a we even gains. of at the

I So, don't that -- think don't unrealized any at sell we loss. remember anything -- didn't but... material an I

Matthew Lambiase

And crazy especially hope and March, thought think that is marketplace. don't really assets period the in and to still is to and a assets to that that assets -- we your much great think the securitize we have. early the realize so was are sell we our losses And April took gather just time the we want of you end that

void to back we these or point that's and end asset future some in up. at we we at of the these sell March. in I And why liquidity why think didn't did book think we that realize back didn't ride -- value So, the come are want to into prices the going

Eric Hagen

Got much well. Appreciate it. and it. very Thank stay you,

Operator

our JMP the line Trevor going come And of Cranston question with Securities. next from to is

Trevor Cranston

Thanks. right. All

the rates like significant what out are credit sort able in you just some could many who maybe versus terms of or a kind little in if get seeing April? against and a February. this landscape haircuts securities. are but repo on been there? longer-term you're you I wondering some color on willing reduction add And was terms commentary look able bit, to in maybe general counterparties today in what touched of Thanks. people you're loans January You additional and And lend to were to of on the There's on the provide how

Matthew Lambiase

financing vast Trevor, some needs counterparties start our because still XX-plus such about assets XXXX. that have of But question the those have. of into we backwards guys we your majority part finance. was financing latter a of over with of will that and I'll came We had the The the were reason financing financing us counterparties group as the diverse were counterparties. we Agency

we didn't and we are As event pare still to those we we the naturally go exist lend reduce counterparties financing we and But exposed those available the into are overall position, number agencies. the just to in them Agency that down for need of add because assets. were to back counterparties

continues credit side, that financing the same On us. was anybody us thing, to finance

As there. without that issues side post-March Rob affect on the to mentioned, just March and the come in that still that And sort cost that we've any sold financing that. credit financing any really roles up have of had haircuts we have the haven't assets is but rolled and adjusted of associated the with it, have people

XX As remarks, of the longer on we an between our repo anywhere some to entered two add and transactions mitigate totaling million, We've of risk. assets currently the on our different those taken approach months. $XXX XX to we mentioned range in have mark-to-market tenors plus tenor into opening to

focused of locking of and the as to and cost that up two-year, is we past financing just of credit assets again the the cost costs longer we're I coming for sheet. in on our months of that the being the financed financing And deferrals. mentioned generically gone and kept forbearances assets balance type as up done uncertainty always to But what We've are three-year have it subject tenor. tenor. in coming relates see given We've that the some trades

Trevor Cranston

capitalize as versus your stock talk sounds helps. talked like how those the you in to opportunities looking although unclear own you other investment, just exactly little about balancing opportunities able then might And at loan about be Can you. Okay. Thanks. you buying a potentially that. such some back? for That when you're bit Thank it some things on space of

Rob Colligan

Sure.

was So happened in back spread the disarray security which as March significantly mid, side, the of obviously, late in April. Matt has pretty in some mentioned, come tightening that's

there's in lot talk and the of agreement. where mentioned non-QM space And you about we've the QX from and past, in us. a the we never convexity has earnings the I flow the still partnerships think never there and loan been can call as a returns opportunity worked really having loans as profile recall like for having

Now we're with all on originators overhang where lot clearer more that we're looks that evaluate attractive. I pricing termed just we picture cohorts product But the be to watch side looking Again, financing assets it's The where different pay was able is the stocks out, a assets. deferrals on also between technical some is, to these also supply. forbearances as an of and to There result we securitize and relation originations returns new a will cautiously with to of finally where to until the get mean is buying also at issue the of market of a lead evaluating. favorable available. opportunities shake those have we versus capital and going to as in halting deployment

Trevor Cranston

you comments. Thank the Okay. for

Operator

Thank you.

question next from Howlett, Matthew of come line Nomura. Our the will

Matthew Howlett

question. taking Hi, my guys. Thanks for

that's come debt? and Just any it you question, come down? assuming or at bought back in I'm of looking outstanding you that the price securitization buying on down have has are back

Rob Colligan

Yeah.

we time. to for widen we'd relever capital there's us well where evaluate. a the able only we good if and of March. we buy would that that -- take was didn't of the on that of on exit be capital a the opportune picture because to it you as debt was in as clearer the it use some to sort thing use that to stabilizes extinguish But will more is did as at around and market of it's now right far a asset in products the But like capital. if re-lever away would be the the And king. is spread think -- otherwise need Buying would don't again But strategy that As with were uncertainty goes, think we secured debt forbearance, we future. obviously, available, cash best still that's other

Operator

Laws James. of Our next the line question come with Raymond Stephen will from

Stephen Laws

Hi, good morning.

Following to position. has questions, little up Have pledged on raised understand had but losses, things previously you financing money in improve So recovery We've the some the side. of a collateral you you've imagine on on the to liquidity completely unrealized the offerings to in options loans you through improving margin bit calls? resulted which your similar got some being and meet stabilize as the is liquidity limited guys. concerns new unlocked when I

versus buying think do about you back how So maybe debt stock?

alternative how below there originated repurchases they look given at maybe talk I other versus you are Additionally and are you securities a things in equity? don't And AAA be? but really would you consider would about debt loans. cycle? are newly maybe you in seem mean, still that investment some this might for to what to do investments have where buying market we return at right Can the stepping look grade

Matthew Lambiase

be risk from hang the creates relative largest to as that and the for earlier on mentioned investment return look start I'll investment the assets. and there deployed. to the the focus the and So the was security AAs, of given BBB of for reach AAA curve the just at putting has stack A than the steeper is aside need some and the a especially start just But side. capital structure investment-grade to Loans part the at option I mentioned, the credit year as profile. the it overall for best team The you significantly exists of opportunity capital the lagged is

add on exist, you could those available, potentially assets those again, would if -- leverage think we But is we assets. opportunities and those

Fed return as tightening total assets buying outside other cheap relative spread Our of as product of from reach standpoint thought investors good those and by create opportunity effectively should some spread a will for non-Agency is all value that sort look credit, the a yield other well.

So again, evaluate to that. we continue will

the Like would I said, to on picture waiting We're where an just clear exit have be. securitization present a opportunity. loans

that at exit on into and where ideas would we that equate some can have what on pricing. loan sort We of backing we to think

chop of bid there's think versus where want people a wood based little on the I there to be. sell would still where bit to

And going So to continue past you off in evaluate we've again, buying mean the if issued to securitizations say when debt opportunity. or... debt, the you I of that we're don't back know

Stephen Laws

think -- the debt debt preferred your side... that of off either I I see distribution or but Well did your your on some both mean, or corporate securitizations we

Matthew Lambiase

here up. the I rule is model a looking securitization priority the we're right that things back way one is at think number we'd now to get like

a we need have assets and re-lever and sheet can that balance to figured things think And new we I been that on. or it can time of it's -- call are for at for spending looking we've to assets bit have balance sheet we that or -- put ways we get this securitization restart liquidity the on out. figuring what that's beneficial out And our figure be that what I our think exits it. to market that quite once we on would that very

our been very other figure that thing the assets we've working diligently for to credit on on financing sheet. longer-term out balance and think trying on I is the

down. of one another things those that's ongoing discussions And I locked and think getting these again

little a on with the starting things little around But get think settled farther the I securitization two those to think we more the and with of or to a want bit back to -- event note, to we I regard from and we need or decide bit have pieces and stock buying things. are puzzle we I to we place, sit the in financing look once do think markets. and And really back the preferreds a can and positive get the start percolate. regard away -- landscape those whether things get

we're getting traction. So

seeing some think things happen. we're positive I

optimistic. So cautiously we're

Stephen Laws

comments. the Thank Appreciate Great. you.

Operator

Thank you.

for come Our the Family. last of question with the from day Lee Cooperman line will Omega

Lee Cooperman

Thank you. clearly guys surprised very Look have by you been development.

was term this this dividend and the sustainable with assume I in optimistic. cautiously used surprises you twice was that felt things guess declared on assuming call that which you You've did no one offering you as $X.XX the anticipate? connection unfold something being Could you

Matthew Lambiase

ever I've the that's we stuff to we're really totally figure play tell unemployment when of forbearance as have people thinking difficult about you in still lot projections we're that just never quarter, worlds I -- it's mortgage up different the seen far number programs out. I've this business. coming things never very Lee as the seeing seen little that I've the when I and we has. before. going marketplace. economy and started seen it in think the and regard to rate a the started second into is think with and of never could seen market we the that unemployed never the quarter and first I a

month going don't dividend just a what's with pay it in manager it's It's think of ago what prudent to not I to visibility a the and highest this the I a cautious. our other shareholders. was is complicated we're being think the -- but And all cautiously a two that clear think possible. or very I optimistic, focus just a lot not ago. say business market -- thing and it's on being We're have I think they And any we're very the want in very for currently environment in months we But future. of just businesses

Lee Cooperman

healthy. and luck Thank you. stay Good

Matthew Lambiase

you. Thank

Rob Colligan

Lee. Thanks,

Operator

Thank you. Lambiase closing turn now over to comments. I conference to would Matt the for like

Matthew Lambiase

support. everybody shout a Chimera. want all to the Listen, appreciate call want for We at say I I your joining out employees our certainly to of to thank today.

you quarter the They've worked You've to from again forward results we year. great look for brilliantly and second and in home done safe. job speaking the a to later stay

Operator

conference Thank your That you. conclude appreciate We participation. call. will today's

may You disconnect. now

Chimera Investment (CIM) 6 May 202020 Q1 Earnings call transcript