Chimera Investment still a Buy at Nomura

• Following a meeting with management this week, analyst Brock Vandervliet has increased conviction on Chimera (CIM +1%) and his Buy rating.
• "Given the post-Brexit interest rate environment, the stock should be in the front rank of financial services sector investments." The company's portfolio of highly interest rate insensitive seasoned subprime MBS and subordinated tranches, along with a growing GNMA project finance portfolio leave it "exceptionally well-positioned."
• The dividend, he says, is "more than sustainable." While not expecting an imminent increase, the path at least is flat to up, in contrast with a grind lower in earning and dividends for other mREITs.