Quote & Headlines
5d 1m 3m 1y 5y 10y
To learn more about Seeking Alpha PRO, click here.
CYS Investments, Inc. to Present at the Bank of America Merrill Lynch Banking & Financial Services ConferenceBusiness Wire (Nov 5, 2013)
Business Wire (Oct 16, 2013)
Business Wire (Oct 3, 2013)
Business Wire (Sep 4, 2013)
Business Wire (Aug 27, 2013)
Business Wire (Jul 17, 2013)
Business Wire (Jul 2, 2013)
at CNBC.com (Jun 10, 2013)
CYS Investments, Inc. to Present at the Deutsche Bank dbAccess Global Financial Services Investor ConferenceBusiness Wire (May 22, 2013)
Business Wire (May 21, 2013)
Business Wire (May 2, 2013)
Business Wire (Apr 29, 2013)
CYS Investments, Inc. Announces Pricing of Public Offering of Series B Cumulative Redeemable Preferred StockBusiness Wire (Apr 23, 2013)
Business Wire (Apr 23, 2013)
Business Wire (Apr 17, 2013)
Business Wire (Apr 4, 2013)
at CNBC.com (Jun 10, 2013)
at CNBC.com (Jan 9, 2013)
at CNBC.com (Nov 8, 2012)
at CNBC.com (Sep 11, 2012)
at MarketWatch.com (Jul 11, 2012)
CYS vs. ETF Alternatives
Tuesday, Dec 1011:12 AMMortgage REITs unfazed by Hatteras dividend cut
Tuesday, Dec 1011:12 AM| 20 Comments
- The mREIT sector (REM +1.2%) is up for a 2nd consecutive day, with Hatteras Financial's (HTS +1.5%) 9% dividend cut overnight not hurting the stock and suggesting maybe a lot of bad news has been priced in. Core income in Q3 was $0.44 per share and the new payout is $0.50.
- Another adjustable-rate mortgage player, CYS Investments (CYS +2.4%) is also ahead, as is Capstead Mortgage (CMO +0.9%). Others: Annaly (NLY +1.5%), American Capital (AGNC +1.7%), Invesco (IVR +2.4%), Western Asset (WMC +1.3%).
- Related ETFs: MORT, MORL
Friday, Dec 64:23 PM
Friday, Dec 611:42 AMMinus sector giants, mREITs head higher
Friday, Dec 611:42 AM| 12 Comments
- There's a bit of green spreading across the mREIT sector this morning as Treasurys reverse an early plunge following the strong jobs report - the 10-year yield is now off 3 basis points to 2.85% after climbing to 2.93% just after the 8:30 ET release.
- However, there's no relief for sector leaders Annaly (NLY -1%) and American Capital Agency (AGNC -1.5%), both of which continue to reel following Goldman's Sell recommendation yesterday - each have carved out new 52-week lows this morning. There may be plenty of players in the mREIT sector, but for the institutional big boys who have the Goldman report on their desks, there's just NLY and AGNC. Others in the red include: Armour (ARR -0.7%) and CYS Investments (CYS -1.1%).
- Posting gains: Chimera (CIM +0.8%), Invesco (IVR +0.2%), Hatteras (HTS +0.2%), Dynex (DX +0.7%), New York Mortgage (NYMT +0.3%), Apollo Residential (AMTG +0.7%), Javelin (JMI +1.1%), AG Mortgage Investment (MITT +2.3%).
- Related ETFs: REM, MORT, MORL.
Thursday, Dec 51:17 PMAnnaly and American Capital lead mREIT decline after Sell rating
Thursday, Dec 51:17 PM| 37 Comments
- A check of the mortgage REITs following Goldman's interestingly-timed initiation of Annaly (NLY -1.6%) and American Capital Mortgage (AGNC -1.1%) with Sells finds the sector (REM -0.8%) again underperforming the broad market.
- To review: Annaly is off about 40% in 8 months and American Capital is off about 42% in 7 months. Yes, higher interest rates have delivered a hit to their portfolios (which tend to be longish in duration), but investor distaste for the names also has both trading at roughly 20% discounts to their book values.
- So is the call late? Maybe. On the other hand, one well-known hedge funder defines a 50% loss as holding a stock that goes from being down 80% to being down 90%.
- Other names of interest: CYS Investments (CYS -0.4%), Western Asset (WMC -1%).
- Related ETFs: MORT, MORL
Monday, Dec 23:48 PMNo bid for mortgage REITS as yields rise
Monday, Dec 23:48 PM| 36 Comments
- There's no mercy for the mREIT sector (REM -1.6%) as this morning's strong economic data sends the 10-year Treasury yield five basis points higher to 2.80%. Among the new 52-week lows today are sector giants Annaly (NLY -1.6%) and American Capital Agency (AGNC -1.8%).
- Also down sharply are Armour (ARR -2.4%), CYS Investments (CYS -2.4%), Dynex (DX -2.5%), American Capital Mortgage (MTGE -2.8%), AG Mortgage (MITT -2.4%), and Arlington Asset (AI -3.1%).
- Management matters, and investors have clearly lost some faith in the leadership of Annaly and American Capital - both of which trade at more than 20% discounts to book value. The newest favorite is that of Ellington Financial (EFC), where management has mostly been able to preserve book value this year. Company structure may have helped too - Ellington is a partnership, not a REIT and has somewhat more flexibility with its portfolio. The stock trades at just a 6% discount to October 31 reported book.
- ETFs: MORT, MORL
Tuesday, Nov 261:54 PMAnnaly leads more declines in mREITs
Tuesday, Nov 261:54 PM| 44 Comments
- At what point do you just liquidate the portfolio? Habits die hard and traders used to hitting the sell button on the mREITs (REM -0.5%) are doing so again today even as interest rates slide a bit.
- Hitting another multi-year low today, Annaly (NLY -1.3%) - with a portfolio of very liquid assets heavily hedged against rising rates - is now selling for 20% less than September 30's reported book value.
- American Capital Agency (AGNC -0.8%) - with an equally liquid hedged portfolio - is also at about a 20% discount. Previous: CIO Kain promises to continue buybacks at this discounted level.
- Other agency players: Hatteras (HTS -1%), CYS (CYS -1.4%), Capstead (CMO -1%).
- Non-agency mREITs are slipping as well - even as Case-Shiller reports continued solid gains in home prices (which should boost portfolio values). Two Harbors (TWO -1.5%), MFA (MFA -1.4%), Western Asset (WMC -1.1%).
- ETFs: MORT, MORL
Friday, Nov 223:11 PMMortgage REITs continue to slide
Friday, Nov 223:11 PM| 8 Comments
- A nice backup in rates (the 10-year Treasury yield is off 4 bps to 2.75%) is of no help to the mortgage REITs (REM -0.3%), with sector kingpins Annaly (NLY -1.4%) and American Capital Agency (AGNC -1.2%) both hunkered down (NLY earnings call, AGNC earnings call) for the Fed taper, and both hitting 52-week lows today.
- Earlier this week, AGNC and MTGE CIO Gary Kain took his case all the way to Asia at the Citi financial services conference in Hong Kong (transcript). Yes, book value has been hit by higher rates, but also by how much the market is willing to pay for it. Whereas AGNC traded at an average of 110%-120% of book over the past 4-5 years, it's now at sub-90%.
- Discounts can last for awhile, he admits, but also reminds this isn't some opaque bank balance sheet, but instead an easily valued, highly liquid portfolio of assets trading at $0.85-$0.90 on the dollar. As long as it persists, American Capital will continue selling MBS for $1 and buying back stock at a discount.
- Previous: Kain makes a similar case
- Related ETFs: MORT, MORL
- Other sector stocks: Armour (ARR), Two Harbors (TWO -0.8%), CYS (CYS +0.1%), AG Mortgage (MITT -0.5%)
Monday, Nov 114:28 PMCheap mREIT sector could get cheaper
Monday, Nov 114:28 PM| 27 Comments
- After Q2's shock, earnings maximization turned to book value preservation, says Nomura's Bill Carcache, but the market isn't rewarding management teams for this at the moment. "We have no confidence getting back in now in hopes that shares will begin their climb back toward book value ... 30-year MBS is not an asset class we want to own ahead of [tapering]."
- Hedge books may offer some protection, he says, but at quarter-end American Capital Agency (AGNC -1.8%), Annaly (NLY -2.3%), and CYS Investments (CYS -0.5%) held 43%, 80%, and 42% of their portfolios in 30-year MBS, respectively.
- American Capital is of particular interest given the "management premium" its CIO Gary Kain has enjoyed. "This quarter’s review made it clear to us that traditional active managers have no edge and are holding back to see how the mortgage market reacts to Fed tapering." Ouch.
- Given the above, Nomura thinks a 15% discount to book value is entirely appropriate for the agency players and lowers its price target accordingly on AGNC and NLY. CYS has its price target nudged higher as it's already below 85% of book.
- Earlier today: Annaly de-levered and heavily hedged.
- Previous: AGNC's Kain hunkers down.
- Previous: CYS's Kevin Grant is perhaps a bit more aggressive.
- Relevant ETFs: REM, MORT, MORL.
Friday, Nov 89:51 AMMortgage REITs take out new lows post-jobs report
Friday, Nov 89:51 AM| 8 Comments
- Sharply higher interest rates has a number of mREITs (REM -2.4%) hitting new 52-week lows. Most of the stocks were already on the defensive over the past few sessions following near-universally disappointing Q3 results.
- Annaly (NLY -3.3%), American Capital (AGNC -2.9%), (MTGE -2.5%), Armour (ARR -3.7%), Invesco (IVR -3%), CYS Investments (CYS -5.3%), Hatteras (HTS -3%).
- Other related ETFs: MORT, MORL.
- Earlier: Big beat on jobs number sends Treasury prices south.
Tuesday, Oct 299:20 AMAmerican Capital and Armour results chill mREIT sector
Tuesday, Oct 299:20 AM| 3 Comments
- The first post-earnings downgrade for American Capital Agency (AGNC) comes from BAML, which removes its Buy rating. The quick take from the company's results (reported last night) shows CIO Gary Kain lightening up the portfolio and shortening duration just as the bond market was set to reverse course and move sharply higher. Today's 11 ET conference call should prove a worthy listen. AGNC -4.7% premarket.
- Armour Residential results show pretty much the same thing, with the book dropping to $16.7B from $22.6B a quarter earlier. ARR -4.1%.
- Other agency players premarket: Annaly (NLY) -1.9%, CYS Investments (CYS) -0.8%.
- Kain's non-agency vehicle: American Capital Mortgage (MTGE) -4.3%.
- ETFs: REM -0.6%. Also: MORT, MORL.
Friday, Oct 258:02 AMCYS no longer deemed a Sell at BAML
Friday, Oct 258:02 AM| Comment!
- CYS Investments (CYS) looks to continue a nice post-earnings run after Bank of America removes its Sell rating on the stock and boosts the price target to $8.50.
- The company last week reported September 30 net asset value of $10.10 per share and this is the 2nd upgrade since.
- Q3 results, earnings call report.
- Shares +0.35% premarket to $8.71.
Tuesday, Oct 2212:50 PMMortgage REITs welcome jobs news
Tuesday, Oct 2212:50 PM| 6 Comments
- Throwing a small party in wake of the slow jobs number and resultant tumble in interest rates is the mREIT sector (REM +1.5%). The stocks were mercilessly punished all late spring and summer as interest rates rose, but have regained their footing since about September. The 10-year Treasury yield is at a 3-month low of 2.53%.
- Sector giants American Capital (AGNC +2%) and Annaly (NLY +1.5%) are now up about 15% from their 52-week lows set a couple of months ago.
- Sector fans will recall the stocks getting hit late in 2012 over fears rates - rate spreads, actually - were too low for the companies to earn any return on. With the taper off the table, will those worries return? Tough business.
- Other big movers today: Invesco (IVR +2.6%), Hatteras (HTS +2.9%), CYS (CYS +2.8%), Anworth (ANH +4.7%), New York Mortgage (NYMT +1.5%), Western Asset (WMC +1.1%).
- Other ETFs: MORT, MORL.
Friday, Oct 1812:47 PMCYS boosted at Maxim Group
Friday, Oct 1812:47 PM| 1 Comment
- CYS Investments (CYS +0.6%) gains for a 2nd day post-earnings with Maxim Group upgrading to Buy with $10 price target, noting the strong quarter and the large discount to book value.
- The company reported book held nearly steady at $10.10 per share (after $0.34 dividend) as of September 30 vs. the current price of $8.50 - still a 14.9% discount after two days of gains.
- Q3 results.
- Earnings call coverage.
Thursday, Oct 179:34 AMCYS management pleased with Yellen appointment
Thursday, Oct 179:34 AM| 1 Comment
- The cheapest fixed income assets anywhere across the globe are residential mortgage-backed securities, says CYS Investments (CYS +1.5%) CEO Kevin Grant on the company earnings call. Grant was responding to a question about maybe increasing the size of stock buybacks. The questioner responded that that statement could mean buying the stock of companies which own MBS (boosted buybacks). Grant's retort was to read into it what you like.
- Responding to another question, Grant says spending all possible funds on buybacks would be the textbook corporate finance move given the big discount to book value CYS' shares are trading at. Being a REIT however, and having investors dependent on a stream of dividends, makes that impossible.
- September 30 reported book value of $10.10 puts last night's closing price of $8.27 at an 18.1% discount.
- Bullish about company prospects going forward, Grant says he would feel a whole lot differently had it been Larry Summers instead of Janet Yellen picked to lead the Fed.
- Q3 results from last night.
- Related ETFs: MORT, MORL, REM.
Wednesday, Oct 164:12 PMFirst mREIT to report, CYS sees $0.10 drop in book value
Wednesday, Oct 164:12 PM| 2 Comments
- Net asset value per share of $10.10 is off a dime from the end of Q2.
- Core income of $0.36 per share is off one penny from Q2.
- Continued decline in leverage amid expected higher interest rate volatility leaves leverage ratio at 6.5:1 vs. 7.5:1 last quarter.
- Net interest margin of 1.66% is 30 basis points higher than last quarter.
- Company repurchased 5.9M shares at average price of $7.77 each.
- CYS +1.5% AH to $8.27.
- Conference call tomorrow at 9 ET.
- Press release.
Wednesday, Oct 164:04 PM
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.