Update: Jefferies Downgrading Chimera Investment Corporation

Jefferies & Co. is downgrading shares of Chimera Investment Corporation CIM to Hold, and is lowering its price target to $3.80. In a note to clients, Jefferies writes, "Our downgrade is based on our expectation for additional headwinds in CIM's business, both fundamental and optical. Considering the overhangs of the run-off of the re-REMIC portfolio, increasing realized losses, and a slowdown in foreclosure activity, we expect shares to remain in a holding pattern until CIM is able to capitalize on opportunities in the new issue market." Shares of CIM closed at $3.94 yesterday.