This Day On The Street
Continue to site
ADVERTISEMENT
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

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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs