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CHMI - Cherry Hill Mortgage Investment Corporation ()

Overview

Company Summary


Cherry Hill Mortgage Investment Corporation (CHMI) is a publicly traded real estate finance company that primarily operates in the residential mortgage market in the United States. It focuses on investing in, acquiring, and managing a portfolio of residential mortgage assets.

CHMI primarily employs a strategy known as a mortgage real estate investment trust (mREIT). As an mREIT, the company is required to distribute a significant portion of its earnings to shareholders as dividends in exchange for certain tax advantages.

The company mainly generates its income through investments in mortgage-backed securities (MBS), which are bonds backed by residential mortgages. MBS are typically issued by government-sponsored enterprises like Fannie Mae and Freddie Mac. By acquiring MBS, CHMI essentially becomes the owner of a portfolio of mortgage loans.

CHMI's strategy revolves around generating a spread between the interest income from these mortgage loans and the cost of borrowing funds to finance these investments. The company aims to achieve consistent and attractive returns by actively managing its assets and liabilities, capitalizing on interest rate fluctuations, and employing various hedging strategies.

In addition to residential mortgage assets, CHMI may also invest in other mortgage-related investments, including non-agency residential mortgage-backed securities and other real estate-related assets.

Overall, Cherry Hill Mortgage Investment Corporation operates as a real estate finance company focused on residential mortgage assets, employing an mREIT structure to generate income for its shareholders through investments in mortgage-backed securities and other mortgage-related investments.

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