This Day On The Street
Continue to site
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 )

The capacity is very good right now in the repo markets, but it does move around. And all of our counterparties have all their own issues, and we like to diversify our sources of financing and types of financing. And, of course, we’re a REIT, so whatever we earn we’ve got to pay out, and it goes out to you all in the form of dividends to our shareholders.

We’re now three years plus as a public company, and we’re very proud of the track record thus far. And we hope to continue to deliver these results. Essentially, since our IPO we’ve just about doubled our initial public investors’ investments, since that June 2009 IPO.

On the expense ratio side, I actually said in the IPO roadshow that our goal was to become the most efficient provider of access to these markets, to our investors. And by these markets I mean the agency mortgage market, the repo market, which is very difficult for you to access yourself, and the interest rate derivatives, basically the hedging markets, the swaps markets.

So if we’re the most efficient provider of access to these markets than anyone else, then we will always be able to generate a better return. And when returns were in the 15%, 16%, 17% neighborhood, the investor base really didn’t focus on expense ratio.

But now we’re in a low teens investment environment, and I think the market is beginning to realize that this expense ratio load and efficiency and quality of management really is a pretty significant differentiator, and we think this really matters to our shareholders and ultimately, obviously, the multiple on the stock.

So let’s move to the mortgage investing environment. Rates are low. The Fed is our biggest competitor for assets, in a very significant way. And the Fed’s activities in the markets and the expectations of more activity in the market is driving the absolute level of rates. A 7/1 hybrid ARM, par priced - this is very theoretical - would yield about 1.4% right now. There really is no such thing. The entire market is a premium market.

Read the rest of this transcript for free on

3 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs