Company: CIMO
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001409493-25-000028
Chunk: 17

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 17
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 expense on secured financing agreements collateralized by Agency RMBS increased by $12 million due to higher balances. 

This increase was partially offset by a decrease in our average securitized debt balance of $235 million, which resulted in a decrease of $3 million in interest expense on Securitized debt during the quarter ended September 30, 2025, as compared to the quarter ended June 30, 2025. As we continued to rebalance our investment portfolio, we reduced our average secured financing agreements collateralized by Non-Agency RMBS through asset sales and paydowns, which decreased our interest expense on secured financing agreements collateralized by Non-Agency RMBS by $2 million during the quarter ended September 30, 2025, as compared to the quarter ended June 30, 2025. 

Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024

Interest expense increased by $31 million, or 8.4%, to $401 million for the nine months ended September 30, 2025, as compared to $370 million for the nine months ended September 30, 2024. The increase was primarily driven by an increase in interest expense on our secured financing agreements collateralized by Agency RMBS of $32 million, driven by higher borrowings to finance our Agency CMO and Agency Pass-through purchases, reflecting the deployment of leverage to support our Agency RMBS activities, during the nine months ended September 30, 2025 as compared to the prior period. Additionally, the interest expense on our Long Term Debt increased to $11 million during the nine months ended September 30, 2025 as compared to $3 million for the nine months ended September 30, 2024, driven by our additional unsecured long term debt issuance during the period to support our investment activities.

The increase in interest expense was offset by a decrease in our interest expense on secured financing agreements collateralized by Non-Agency RMBS of $8 million for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, due to a reduction in our average secured financing agreements collateralized by Non-Agency RMBS through asset sales and paydowns. Additionally, our interest expense on Securitized debt decreased by $2 million due to a reduction in our average securitized debt balance of $530 million during the nine months ended September 30, 2025, as compared