Company: CIMO
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001628280-25-038345
Chunk: 173

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 173
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 the quarter ended March 31, 2025

Interest expense increased by $14 million, or 11.4%, to $135 million for the quarter ended June 30, 2025, as compared to $121 million for the quarter ended March 31, 2025. This increase was primarily driven by an increase in our borrowings under secured financing agreements collateralized by Agency RMBS balance of $807 million to finance the Agency RMBS purchases during the quarter. During the quarter ended June 30, 2025, the interest expense on secured financing agreements collateralized by Agency RMBS increased by $8 million due to higher balances. Additionally, the interest expense on Securitized debt, collateralized by Loans held for investments and secured financing agreements collateralized by Loans held for investments increased by $3 million and $2 million, respectively, due to higher financing rates during the quarter ended June 30, 2025, as compared to the quarter ended March 31, 2025. 

Six Months Ended June 30, 2025 compared to the six months ended June 30, 2024

Interest expense increased by $16 million, or 6.6%, to $257 million for the six months ended June 30, 2025, as compared to $241 million for the six months ended June 30, 2024. The increase was primarily driven by an increase in interest expense on our secured financing agreements collateralized by Agency RMBS of $15 million, driven by higher borrowings to finance our Agency CMO and Agency Pass-through purchases during the six months ended June 30, 2025, as compared to the prior period. Additionally, the interest expense on our Long Term Debt increased to $7 million during the six months ended June 30, 2025 as compared to $1 million for the six months ended June 30, 2024, driven by our additional unsecured long term debt issuance. 

These increases were offset by a decrease in our average securitized debt balance of $486 million, which decreased our interest expense on Securitized debt by $1 million during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. As we rebalanced our investment portfolio, we reduced our average secured financing agreements collateralized by Agency CMBS and Non-Agency RMBS, which combined with lower financing costs, decreased our interest expense on secured financing agreements collateralized by Agency CMBS