# Bimini Weighs Debt Paydown as Fed Hikes Could Raise Funding Costs By John Kim Canonical URL: https://www.tokenpost.com/news/business/51795 Published: 2026-11-08T20:30:36.000Z Updated: 2026-11-08T20:30:36.000Z Section: Business > Management tied the consideration to possible higher funding costs and described the third quarter as difficult for leveraged mortgage-backed securities investors. Bimini Capital Management, Inc. is considering using available cash to repay trust preferred debt as continued Federal Reserve rate increases could raise the company’s funding costs. Management is weighing the possible paydown amid difficult conditions for mortgage-backed securities investors. Robert E. Cauley, Bimini’s chairman and CEO, described the third quarter of 2026 as “very challenging to levered RMBS investors, particularly late September and early October.” Bimini management also pointed to interest rates at multi-decade highs and a spike in implied rate volatility during the quarter. The company has been broadening its advisory business beyond mortgage-backed securities. Tom Johnson Investment Management, LLC (TJIM), in which Bimini acquired an 80% stake on April 1, 2026, contributed $1.69 million in third-quarter advisory revenue, as covered in [Bimini’s third-quarter results](). The acquisition expanded Bimini’s advisory work into equity and fixed-income markets. Its subsidiary, Bimini Advisors, manages a mortgage-backed securities portfolio for Orchid Island Capital. ## Links in this article - [Bimini’s third-quarter results](https://www.tokenpost.com/news/business/51320)