{"data":{"id":"sw_c4e85ce39d6596e09097","slug":"chimera-s-8-series-a-preferred-trades-below-par-five-years-after-its-call-date-p","title":"Chimera's 8% Series A Preferred Trades Below Par Five Years After Its Call Date Passed","subheadline":"CIM-A and four sibling preferred series from the mortgage REIT all sit at discounts to par despite being redeemable now, a gap that has persisted since October 2021.","summary":"Chimera Investment's 8% Series A preferred stock has traded below its $25 par value for five years past its October 2021 call date, part of a five-security preferred stack from the mortgage REIT that remains discounted despite being callable.","body":"Chimera Investment Corporation's 8% Series A Cumulative Redeemable Preferred Stock, listed under tickers including CIM-A and CIM.PRA, has traded below its $25 liquidation preference for five years since becoming callable on October 30, 2021. The stock last closed at $19.94, a discount of roughly 20.24 percent, or $5.06 per share, to par. That gap has persisted even though the REIT has had the right to redeem the shares at face value for half a decade and has not done so.\n\nThe pattern extends across Chimera's capital structure. In addition to the Series A shares, the company has four other preferred series outstanding with coupons of 7.75 percent, 10.30 percent, 10.51 percent and 10.75 percent, alongside a 9.00 percent baby bond. All five preferred series sit at discounts to their par values, according to the securities' current pricing, even though each is now callable. The gap between call eligibility and actual redemption first stood out in data reviewed on Preferred Stock AI, a Madison Labs research site.\n\nWhat the discount signals is open to interpretation. One reading of a preferred stock trading below par while callable is that the market assigns a low probability to near-term redemption, since Chimera would have no economic reason to call an 8% coupon security for cash at $25 unless it could refinance more cheaply or had another strategic reason to retire it. Another reading is that investors are simply pricing in the security's perpetual nature and treating the call date as optional rather than imminent, a common feature across the preferred stock market broadly. Because the shares are perpetual with no maturity, holders have no contractual date by which they are guaranteed to receive par back.\n\nFor investors, the discount matters in two directions. A share purchased today at $19.94 that continued paying its full $2.00 annual dividend would generate a current yield of 10.03 percent, above the security's 8.00 percent original coupon, because the yield is calculated against the market price rather than the $25 face value. At the same time, anyone holding the shares carries the risk that Chimera could choose to redeem at $25 at any point, which would cap further price appreciation, or that the discount could persist or widen if the shares remain out of favor. Chimera's other preferred series, some with meaningfully higher coupons, are also trading at discounts, according to the current pricing on the issuer's other securities, suggesting the phenomenon is not isolated to the Series A shares.\n\nChimera is an internally managed real estate investment trust incorporated in Maryland in 2007 that invests in residential mortgage loans, non-agency and agency residential mortgage-backed securities, business purpose loans, mortgage servicing rights, agency commercial mortgage-backed securities, home equity lines of credit and reverse mortgages. In October 2025 the company acquired HomeXpress Mortgage Corp for approximately $272 million, expanding into direct origination of non-qualified and qualified mortgages as well as investor business purpose residential loans. The Series A preferred shares were originally issued in October 2016, with 5.4 million shares offered at the time.\n\nChimera's common stock, which trades separately from its preferred securities, closed at $10.41, down 3.16 percent on the day and within a 52-week range of $14.67 to $10.38. The Lincolnian Online reported on September 23, 2026 that Chimera's common shares hit a new 12-month low. Separately, the company declared a third-quarter 2026 common dividend of $0.45 per share, or $1.80 annualized, according to Kalkine Media and a company release carried by Yahoo Finance on September 17 and 18, 2026.\n\nThe broader mortgage REIT preferred market has generally traded at discounts to par in the current rate environment, a dynamic tied to where new-issue preferred yields sit relative to older, lower-coupon securities still outstanding from issuers across the sector. Chimera's Series A discount of roughly 20 percent compares with an average discount closer to 17 percent across a wider universe of more than 130 yield-bearing preferred issues, based on current market pricing, making the Series A gap somewhat deeper than the typical preferred security trading in similar conditions.\n\nInvestors watching Chimera's preferred stack are likely to focus on whether the company takes any redemption action across its five outstanding preferred series now that all are callable, how the common stock's recent decline to fresh 12-month lows affects sentiment toward the broader capital structure, and how the HomeXpress acquisition integration performs as Chimera expands into direct loan origination. Any future filings, dividend declarations or redemption notices from the company would be the next concrete data points for holders of CIM-A and its sibling preferred series to track.","source":{"name":"Preferred Stock AI","slug":"preferredstock-ai"},"category":"Preferred Stocks","article_type":"News","license":"Free to republish, in full or in part, with attribution to Capital Data Wire and a link to the original article. No fees, registration, or permission required.","quality_score":85,"human_reviewed":false,"original_url":"https://preferredstock.ai/symbol/CIM-P-A","featured_image":null,"published_at":"2026-09-25T11:26:12.663923+00:00","updated_at":"2026-09-25T11:26:12.663923+00:00","is_demo":false,"attribution":"Via Capital Data Wire. Discovered via Preferred Stock AI.","attribution_html":"Via Capital Data Wire. Discovered via Preferred Stock AI."},"meta":{"demo_data":false}}