Chimera Investment Corp. (CIM) is a REIT that invests directly, or indirectly, in mortgage-backed securities (MBS), the majority of which are residential (RMBS). Chimera Investment Corp. first caught my eye because of its fat dividend yield that would most certainly scare anyone away barring the most ignorant or the most aggressive of investors. I decided to take a deeper look into their operations out of a desire to learn more about the Real Estate sector.

Chimera Investment Corp. has cash and cash equivalents of roughly $236 million. This represents about 6% of its current market cap, but what really drives Chimera's value is its portfolio of investment securities that drive its income. This is where we will really want to look. Chimera's investment portfolio is separated into the following: