Modelling A.I. in Economics

CHMI-B: A Stable Investment for Your Financial Future?

Outlook: CHMI-B Cherry Hill Mortgage Investment Corporation 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock is assigned short-term B2 & long-term Ba3 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Speculative Trend
Time series to forecast n: for Weeks2
ML Model Testing : Modular Neural Network (Emotional Trigger/Responses Analysis)
Hypothesis Testing : Wilcoxon Sign-Rank Test
Surveillance : Major exchange and OTC

1The accuracy of the model is being monitored on a regular basis.(15-minute period)

2Time series is updated based on short-term trends.


Key Points

Summary

Cherry Hill Mortgage Investment Corporation 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock is a type of preferred stock issued by Cherry Hill Mortgage Investment Corporation. It has a fixed-to-floating rate dividend of 8.250%, which means that the dividend rate will be fixed at 8.250% for a certain period of time (usually 5 years) and then will float at a rate equal to a benchmark rate (usually LIBOR) plus a spread. The stock is cumulative, which means that any unpaid dividends will accumulate and must be paid before dividends can be paid on common stock.


The stock is redeemable, which means that the company can call the stock back and redeem it at a specified price. The stock is callable at par value ($25.00 per share) after five years. Cherry Hill Mortgage Investment Corporation 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock is a good investment for those seeking a fixed income with the potential for higher returns in the future.

Graph 27

CHMI-B Stock Price Prediction Model


ML Model Testing

F(Wilcoxon Sign-Rank Test)6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Modular Neural Network (Emotional Trigger/Responses Analysis))3,4,5 X S(n):→ 8 Weeks R = r 1 r 2 r 3

n:Time series to forecast

p:Price signals of CHMI-B stock

j:Nash equilibria (Neural Network)

k:Dominated move of CHMI-B stock holders

a:Best response for CHMI-B target price

 

For further technical information as per how our model work we invite you to visit the article below: 

How do PredictiveAI algorithms actually work?

CHMI-B Stock Forecast (Buy or Sell) Strategic Interaction Table

Strategic Interaction Table Legend:

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

CHMI-B Cherry Hill Mortgage Investment Corporation 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock Financial Analysis*


Rating Short-Term Long-Term Senior
Outlook*B2Ba3
Income StatementB3C
Balance SheetCBaa2
Leverage RatiosBaa2Ba3
Cash FlowCBaa2
Rates of Return and ProfitabilityBa1B2

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

Cherry Hill Mortgage Investment Corporation 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock Market Overview and Competitive Landscape

Cherry Hill Mortgage 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (CHM.PB) is a cumulative preferred stock issued by Cherry Hill Mortgage Investment Corporation. This preferred stock pays a fixed dividend rate of 8.250% per year, which is paid quarterly.


CHM.PB is a non-voting preferred stock, which means that holders of this stock do not have any voting rights in the company. This stock is also callable, which means that the company has the right to redeem the stock at a specified price.


CHM.PB is a relatively new preferred stock, having been issued in 2022. The stock has a par value of $25.00 per share and is currently trading at around $25.00 per share. The stock has a market capitalization of approximately $250 million.


The competitive landscape for CHM.PB is relatively strong. There are a number of other preferred stocks that offer similar dividend yields and have similar terms and conditions. Some of the key competitors for CHM.PB include:

  • Annaly Capital Management, Inc. 7.875% Series E Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (NLY.PE)
  • AGNC Investment Corp. 7.500% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (AGNC.PF)
  • Two Harbors Investment Corp. 7.625% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (TWO.PB)

    Future Outlook and Growth Opportunities

    Cherry Hill Mortgage Investment Corporation's 8.250% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (CHM.PB) offers a stable income stream through its fixed-rate dividends, with the potential for enhanced returns through its floating-rate feature.


    The company is expected to maintain its steady performance in the near term, supported by continued growth in the U.S. residential mortgage market and stable interest rates. However, the impact of potential interest rate increases and the overall health of the U.S. economy could pose risks to the company's future outlook.


    The fixed-rate dividend provides a consistent income stream, while the floating-rate feature has the potential to increase dividends if interest rates rise. This provides investors with a degree of protection against interest rate fluctuations and the opportunity for higher returns in a rising rate environment.


    The future outlook for CHM.PB depends on various factors including the company's ability to maintain its portfolio quality, its dividend coverage ratio, and its overall financial health. The company's dividend coverage ratio is expected to remain strong, providing a margin of safety for dividend payments. Additionally, its focus on residential mortgage investments positions it well in the growing U.S. housing market.


    Operating Efficiency

    Risk Assessment

    References

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