This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

CYS Investments' CEO Presents At Barclays Capital Global Financial Services Conference (Transcript )

Stocks in this article: CYS

So yes, CYS is an agency-only mortgage REIT, and I’ll bring your attention to our forward looking statement cautionary paragraph. I’ll let you read this at your leisure. But suffice it to say, I’ll make some forward looking statements and we could change our mind in five minutes. Just be aware the markets change very quickly, and we react.

So the company is an agency-only mortgage REIT. We actually started privately in 2006, and at the time it was a hybrid strategy. And that was something that at the time we felt a lot of value could come from. But very early on in our life, we realized that the credit markets were changing drastically. We changed our investment guidelines in 2007 to be agency-only, and that was very prescient. We got that right. And even today the residential mortgage market really is an agency-only world.

I’m the founder of the company. Started the company in 2006. The team that started the company, really including Frances, has been in place right since the beginning. As Mark mentioned, we are self-managed. Our view on this is that when the company was small it was valuable to have an external manager, really for resources, because you could lean on the external manager. It’s very expensive to start one of these companies.

But as you scale, it really makes sense to become self-managed, and we brought management inside just about a year ago, a little over a year ago, and essentially that transaction was for free. The company had to pay for computers and office buildout and so forth, but essentially it was pretty close to a for-free transaction. We think this is the right structure for us, our particular circumstances, and it really does deliver economies of scale as the business grows.

We’ve got a lot of financing in place, with a lot of different counterparties. We’ve got over 34 counterparties in place now. Believe it or not, we’ve got more counterparties in the works for financing and interest rate swaps. It’s very important to manage these counterparties. The capacity moves around.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs