CYS Investments, Inc. (CYS) - NYSE
  • Oct. 21, 2015, 4:27 PM
    • CYS Investments (NYSE:CYS): Q3 EPS of $0.27 misses by $0.01.
    • Net interest income of $47.04M (+3.9% Q/Q)
    | Oct. 21, 2015, 4:27 PM
  • Oct. 20, 2015, 5:35 PM
  • Oct. 5, 2015, 12:36 PM
    • With a wave of Q3 dividend cuts now in the rearview mirror, perhaps investors are looking ahead to what might be stability in payouts. With most of the sector trading at double-digit discounts to book value - and plenty of names selling for more than 20% discounts - even stability should be enough for a reasonable rally into year-end.
    • Leading the way higher is Five Oaks Investment (OAKS +6.4%), while mREIT giants Annaly Capital (NLY +1%) and American Capital Mortgage (AGNC +1.2%) are sector laggards today.
    • Two Harbors (TWO +1.7%), CYS Investments (CYS +2.3%), New York Mortgage (NYMT +3.5%), Dynex Capital (DX +2.4%), AG Mortgage (MITT +2.6%), Javelin Mortgage (JMI +4%), Armour Residential (ARR +2.9%), Orchid Island (ORC +4.2%)
    • ETFs: MORL, REM, MORT, LMBS
    | Oct. 5, 2015, 12:36 PM | 22 Comments
  • Sep. 18, 2015, 11:19 AM
    • Annaly Capital (NLY +0.9%), Anworth Mortgage (ANH +0.6%), Apollo Residential (AMTG +0.1%) and ZAIS Financial (ZFC +0.8%) last night added themselves to the smallish list of mortgage REITs maintaining dividends this quarter.
    • Those announcing dividend cuts after the bell were American Capital Mortgage (MTGE -1.2%) and Arlington Asset (AI -0.5%).
    • The sector as a whole continues to move higher following the FOMC yesterday afternoon, but hit particularly hard today is CYS Investment (CYS -3.1%). The move is especially notable as CEO Kevin Grant has been consistently skeptical about fears of higher rates.
    • ETFs: MORL, REM, MORT, LMBS
    | Sep. 18, 2015, 11:19 AM | 31 Comments
  • Sep. 17, 2015, 10:28 AM
    • Presenting at the Barclays financial services conference, CYS Investment (CYS -0.6%) CEO Kevin Grant reminds the company now - by its FHLB of Cincinnati membership - has additional access to low-cost funding. The move also diversifies counterparty risk, and reduces hedging limitations.
    • Presentation slides
    • Grant continues to be skeptical of the Fed's hawkishness, noting their economic projections have consistently been too optimistic. An interesting chart of 10-year government bond yields in the developed world shows only the U.S. being in an uptrend, and one wonders how long this "out of sync" action might keep up.
    | Sep. 17, 2015, 10:28 AM | 2 Comments
  • Sep. 10, 2015, 11:27 AM
    • This quarter's $0.26 per share payout was announced after the close on Tuesday. It was a 7.1% cut from the previous level of $0.31 and brought the forward yield down to 13.54% from 16.3%.
    • With CYS trading at more than a 20% discount to June 30 book value of $9.62, one could be forgiven for thinking the lower dividend was priced in, but the stock is slipping further again today, now off more than 1% since the cut.
    • Previously: CYS Investments declares $0.26 dividend (Sept. 8)
    | Sep. 10, 2015, 11:27 AM | 6 Comments
  • Sep. 8, 2015, 4:26 PM
    • CYS Investments (NYSE:CYS) declares $0.26/share quarterly dividend, -7.1% decrease from prior dividend of $0.28.
    • Forward yield 13.54%
    • Payable Oct. 14; for shareholders of record Sept. 22; ex-div Sept. 18.
    | Sep. 8, 2015, 4:26 PM | 3 Comments
  • Sep. 8, 2015, 11:28 AM
    • "[Mortgage REITs] have almost never been as cheap as they are right now," says Nomura's Brock Vandervilet, who recommended buys in Annaly Capital (NLY +0.5%) and American Capital Agency (AGNC +0.4%) a bit less than a month ago.
    • Barron's Current Yield
    • They're cheap for a reason, and companies which borrow short, lend long, and toss in a healthy amount of leverage can be expected to struggle when funding costs rise faster than the yield on the assets they hold (also known as a flattening yield curve), and most expect a rate hike if not this month, then soon after. The question at hand is whether the flatter yield curve has been priced in (or more than priced in), and discounts to book value north of 20% for at least some in the sector suggests it has.
    • “It is going to take forever and a day for rates to rise, which is going to give these companies plenty of time to reposition,” says Vandervilet.
    • KBW likes Annaly, American Capital, and CYS Investments (CYS +0.5%), and Chimera (CIM +0.8%) as having the most upside if somehow there is no rate increase or in a "slow, but steady" rate-hike scenario.
    • Wunderlich's Merrill Ross would add Invesco (IVR +0.4%) to that group as being attractive despite the headwinds.
    • ETFs: MORL, REM, MORT, LMBS
    | Sep. 8, 2015, 11:28 AM | 46 Comments
  • Sep. 1, 2015, 2:54 PM
    • The financial sector is leading the market lower today, but these sessions often see money flow into REITs. There's no green to be found, but mortgage REITs like Annaly Capital (NLY -0.3%), American Capital Agency (AGNC -0.2%), Anworth Mortgage (ANH -0.2%), Chimera (CIM -0.1%), CYS Investments (CYS -0.1%), Invesco (IVR -0.3%), and Dynex (DX -0.7%) are outperforming by a wide margin.
    • Equity REITs are doing better than the XLF and S&P 500, but still sharply lower: Realty Income (O -1.5%), Omega Healthcare (OHI -2.2%), HCP (HCP -1.2%), Gramercy Property (GPT -1.9%), Equity Residential (EQR -2.4%), Kimco (KIM -2.1%), Simon Property (SPG -2.2%), Public Storage (PSA -1.1%), Hospitality Properties (HPT -2.1%), Stag Industrial (STAG -1.2%)
    • ETFs: IYR, VNQ, MORL, REM, MORT, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, DRA, FREL, WREI, LMBS, IARAX
    | Sep. 1, 2015, 2:54 PM | 33 Comments
  • Aug. 21, 2015, 3:30 PM
    • These income favorites often catch a wave of buying when the major averages sell off and yields fall, but the panicky action today is taking down nearly all equities.
    • The iShares DJ U.S. Real Estate ETF (IYR -1.7%) and the iShares FTSE NAREIT Mortgage REIT ETF (REM -1.6%), however, are outperforming the S&P 500's 2.7% decline.
    • Previously: Just a modest rally for Treasurys as stocks crumble (Aug. 21)
    • Leading the mREITs lower is Javelin Mortgage (JMI -5.9%), with SA contributor ColoradoWealthManagementFund noting the company has stopped buying back stock despite its wide discount to book value. The sector as a whole looks like it will continue to have to deal with widening spreads and rising prepayments, and still have a looming rate hike cycle on the horizon.
    • Armour Residential (ARR -2%), CYS Investments (CYS -1.8%), Annaly (NLY -1.2%), American Capital Agency (AGNC -1.8%), Arlington Asset (AI -2.4%), Orchid Island (ORC -2.5%), Dynex (DX -2%), Capstead Mortgage (CMO -1.3%).
    • Equity REITs: Realty Income (O -0.7%), Vereit (VER -2.3%), Health Care REIT (HCN -1%), HCP (HCP -1.1%), Gramercy Property (GPT -3.1%), Equity Residential (EQY -1.6%), Simon Property (SPG -0.5%), Kimco (KIM -2.1%), Hospitality Properties (HPT -2.8%), Stag Industrial (STAG -1.4%), American Campus (ACC -1.1%), Public Storage (PSA -1%).
    | Aug. 21, 2015, 3:30 PM | 38 Comments
  • Aug. 13, 2015, 9:52 AM
    • Compass Point joins Nomura in upgrading Annaly Capital (NLY -0.1%) and American Capital Agency (AGNC -0.1%) to Buy, with price targets of $11 and $22, respectively.
    • "The sector valuation, improved fundamentals, combined with a reversal in benchmark interest rates (namely the 10-year UST) and a change in group sentiment have led us to upgrade our opinion on this out of favor group," says analyst Jason Steward, boosting his outlook on the entire agency mREIT space to positive.
    • Also standing to benefit, says Steward, is CYS Investments (CYS -0.4%).
    • ETFs: MORL, REM, MORT, LMBS
    • Previously: Nomura gets bullish on mortgage REITs (Aug. 12)
    | Aug. 13, 2015, 9:52 AM | 14 Comments
  • Aug. 11, 2015, 12:59 PM
    • The Fed may be determined to hike rates, but deflationary signals are everywhere, with Beijing the latest government to acknowledge such with its devaluation overnight.
    • Crude oil has taken out a new six-year low, tumbling another 4% to $43.15 per barrel, and copper's 3% decline has brought it to a fresh six-year low. The grains are all down by 2% or more, but gold is marginally higher.
    • The major U.S. averages are down more than 1%, and Europe fell 1.5% today.
    • The 10-year Treasury yield is lower by a full ten basis points to 2.13%.
    • Leading the heavily discounted mREIT sector higher are Annaly Capital (NLY +1.1%), American Capital Agency (AGNC +1.3%), CYS Investments (CYS +1.2%), New York Mortgage (NYMT +1.6%), Hatteras Financial (HTS +1.3%), Capstead (CMO +1%), Anworth (ANH +1.4%), Dynex Capital (DX +2.6%), and AG Mortgage (MITT +1.6%).
    • ETFs: MORL, REM, MORT, LMBS
    • In equity REITs: National Retail (NNN +1.2%), Equity Residential (EQR +1.5%), AvalonBay (AVB +1.2%), General Growth (GGP +1.9%), Kimco (KIM +1.4%), Whitestone REIT (WSR +2.9%), Washington Real Estate (WRE +1.2%), Hospitality Properties (HPT +2.3%), Chamber Street (CSG +1.1%).
    • ETFs: IYR, VNQ, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, DRA, FREL, WREI, IARAX
    | Aug. 11, 2015, 12:59 PM | 19 Comments
  • Jul. 28, 2015, 9:52 AM
    • Investors take a least a small hiatus from selling the mortgage REITs after last night's clunker of an earnings report from American Capital Agency (AGNC +2%).
    • Book value fell by 6% during Q2, with higher rates, widening MBS spreads, and faster prepayments making for an ugly combination.
    • The company, however, entered Q3 with its lowest leverage since the financial crisis, giving it the firepower to buy assets on the cheap. At the close yesterday, the stock was selling for a 22% discount to June 30 book value. At some point, the bad news is priced in?
    • The earnings call is set for 11 ET.
    • Annaly Capital (NLY +1.6%), CYS Investments (CYS +0.8%), Western Asset (WMC +1.2%), New York Mortgage (NYMT +0.5%).
    • ETFs: MORL, REM, MORT, LMBS
    | Jul. 28, 2015, 9:52 AM | 13 Comments
  • Jul. 24, 2015, 3:01 PM
    • Just a 1% decline in the major averages (which are being helped by some high-profile earnings moves) is masking far greater carnage in a number of other sectors, notably healthcare (XLV -2.5%) and energy (XLE -2%).
    • Business development companies and mortgage REITs are being socked again as well, suggesting the worry may go beyond interest rates and to credit in general, especially as commodity prices continue to tumble - to pick one, crude oil at $48.06 per barrel is at its lowest price in about four months.
    • Among BDCs: Hercules Technology Growth (HTGC -4.2%), Triangle Capital (TCAP -3.3%), PennantPark Investment (PNNT -5.4%), Prospect Capital (PSEC -1.4%), Main Street Capital (MAIN -2.8%), TICC Capital (TICC -2.4%), KCAP Financial (KCAP -2.6%), THL Credit (TCRD -2.7%), FS Investment (FSIC -1.8%).
    • Among mREITs: Armour Residential (ARR -3.1%), Two Harbors (TWO -0.9%), CYS Investments (CYS -2%), Invesco Mortgage (IVR -1.5%), Capstead Mortgage (CMO -1.2%), Apollo Residential (AMTG -2.6%), Arlington Asset (AI -3.7%), American Capital Mortgage (MTGE -0.9%), Orchid Island (ORC -5.8%).
    • MReit ETFs: MORL, REM, MORT, LMBS
    • BDC ETFs: BDCL, BDCS, BIZD, FGB
    | Jul. 24, 2015, 3:01 PM | 82 Comments
  • Jul. 23, 2015, 9:19 AM
    • Speaking on the earnings call, CEO Kevin Grant says the big jump in long rates forced mark-to-market losses on the portfolio that exceeded gains on hedges, thus causing the sizable loss (8.6%) in book value for the quarter.
    • The flip side of that would be prepayments, says Grant, and while CPR rose for the quarter, the effect of higher rates should cool that metric going forward. Q2 should be the "high water" mark for prepays for the next couple of quarters, says management.
    • Conference call webcast
    • Lower by 4.6% premarket, CYS is now off about 20% over the past three months, and trading at nearly a 24% discount to June 30 book value.
    • Should the company get more aggressive with buybacks? Grant doesn't want to let the world know when he's in the market buying back stock, but says if the math works, the company will be repurchasing shares. 1.29M were bought back in Q2.
    • Previously: Rough quarter for CYS Investments as long rates jump (July 22)
    • Previously: CYS Investments reports Q2 results (July 22)
    | Jul. 23, 2015, 9:19 AM
  • Jul. 22, 2015, 4:16 PM
    • Q2 core earnings plus drop income of $42.8M or $0.27 per share vs. $46.8M and $0.30 in Q1. Dividend is $0.28 (was $0.30 in Q1).
    • Book value per share of $9.62 slips from $10.53 in Q1. Today's close of $7.72 is a 20% discount to book.
    • Interest rate spread of 1.34% slips 10 basis points. CPR of 13% up from 10.3%.
    • Leverage ratio of 7.06:1 vs. 6.77:1 a quarter earlier.
    • 1.29M shares repurchased at an average price of $8.87 each, total of $11.4M.
    • Company expects borrowing costs, and thus net interest spread to decline if and when the Fed hikes rates.
    • Conference call tomorrow at 9 ET
    • Previously: CYS Investments reports Q2 results (July 22)
    • CYS flat after hours
    | Jul. 22, 2015, 4:16 PM
Company Description
CYS Investments, Inc. is a finance company created with the objective of achieving consistent risk-adjusted investment income. It invests on a leveraged basis in the residential mortgage pass-through securities for which the principal and interest payments are guaranteed by the Federal National... More
Sector: Financial
Industry: REIT - Diversified
Country: United States