CYS Investments (CYS -3.9%) takes last night's report of a big drop book value hard despite the...

|About: CYS Investments, Inc. (CYS)|By:, SA News Editor

CYS Investments (CYS -3.9%) takes last night's report of a big drop book value hard despite the fact that shares are already trading at a healthy discount. The report shows management didn't do the greatest job hedging their book and the net realized loss of $211.4M ($1.22/share) shows the company was a big seller of MBS during the quarter to keep the leverage ratio from rising. The rise in interest rates was a 4 standard deviation event and a shock to the system, says CEO Kevin Grant on the CC. Credit Suisee downgrades to Neutral.