Chimera Investment Corp. Preferred A offers 9.3% yield with 16% capital gains potential amid strong fundamentals.

Chimera Investment Corp.'s Preferred A shares (CIM-A) present a compelling investment opportunity with a 9.3% dividend yield and 16% potential capital gains, supported by strong Q1 performance and robust asset collateralization. The preferred shares are safer than common equity due to significant overcollateralization and continuous equity issuance, despite some exposure to interest rate risk. CIM-A trades at a discount to par compared to peers, enhancing total return potential. The company's large allocation to re-performing loans is offset by excellent collateral quality, making CIM-A a medium risk investment with attractive reward potential.