Company: CIMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001628280-25-006426
Chunk: 251

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1A
Chunk 251
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ivatives, at fair value, net— Derivatives, at fair value, net— Total$2,500,000  $—  $— The effect of the Company’s derivatives on the Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022, respectively, is presented below.Net gains (losses) on derivativesfor the years endedDerivative InstrumentsLocation on Consolidated Statements ofOperations and Comprehensive IncomeDecember 31, 2024December 31, 2023December 31, 2022    (dollars in thousands)Interest Rate SwapsNet unrealized gains (losses) on interest rate swaps$4,224 $497 $(10,358)Interest Rate SwapsNet realized gains (losses) on interest rate swaps(17,317)(45,226)(561)Interest Rate SwapsPeriodic interest cost of interest rate swaps, net 23,780 17,167 (1,752)Treasury futuresNet unrealized gains (losses) on derivatives117 — — Treasury futuresNet realized gains (losses) on derivatives(4,223)(6,344)— SwaptionsNet unrealized gains (losses) on derivatives(1,378)(6,908)8,876 SwaptionsNet realized gains (losses) on derivatives— 10,613 — Total $5,203 $(30,201)$(3,795)When the Company enters into derivative contracts, they are typically subject to International Swaps and Derivatives Association Master Agreements or other similar agreements which may contain provisions that grant counterparties certain rights with respect to the applicable agreement upon the occurrence of certain events such as (i) a decline in stockholders’ equity in excess of specified thresholds or dollar amounts over set periods of time, (ii) the Company’s failure to maintain its REIT status, (iii) the Company’s failure to comply with limits on the amount of leverage, and (iv) the Company’s stock being delisted from the New York Stock Exchange, or NYSE. Upon the occurrence of any one of items (i) through (iv), or another 

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default under the agreement, the counterparty to the applicable agreement has a right to terminate the agreement in accordance with its provisions. If the Company breaches any of these provisions, it will be required to settle its obligations underthe agreements at