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.

If you liked this article you might like

Most Investors Should Own a Lot More REITs

Mortgage REITs Are Rolling Right Along

Have Faith in Mortgage REITs

Have Faith in Mortgage REITs

3 Hold-Rated Dividend Stocks: CYS, SIR, NOK

What To Sell: 3 Sell-Rated Dividend Stocks CYS, CMO, PAGP