Chimera Investment Corporation (NYSE:CIM) Q3 2023 Earnings Call Transcript

Eric Hagen: Okay. And then how are we thinking about the option value you have to call and resecuritize the existing portfolio? And really just kind of how sensitive you see that optionality being to interest rates going forward here?

Phillip Kardis: Yes. So it’s sensitive to interest rates. Obviously, as rates decline, it makes it more economic. It also depends on how the transactions have paid down, the size of the senior, the size of the transaction that you would — in terms of when you refinance it. So you look at all those factors. And so right now, the longer those stay out, the better in this environment. And then obviously, as the CPR picks up, it’s just going to be more accretive. So we have this optionality now, and we think it’s very valuable, but we’re going to be cautious in terms of — in the near term. But as rates begin to moderate, we’ll start to look at this more and more closely.

Operator: Thank you. We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Phil Kardis for any closing comments.

Phillip Kardis: Thanks, everyone, for participating in our third quarter earnings call, and we look forward to speaking to you in February with our call related to fiscal year 2023.

Operator: This does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.