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CYS Investments, Inc. Message Board

  • nickspinner Mar 26, 2013 2:55 PM Flag

    CYS is a POS, as bad as ARR but with lower dividend.

    Anyone have any different thoughts on the matter?

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    • What is your basis for saying CYS is a POS?

      The company paid out $2.37 in dividends last year and grew BV. The current portfolio is of newer vintage with lower refi risk and more than half of the mbs are in fairly predictable 15 yr pools. The lower dividend is a function of the company not wanting to reach for yield or pay up in price for lower CPR specified pools. The current 10% discount to marked-to-market BV is excessive in my opinion. Mgt owns a decent amount of stock and has a shareholder friendly compensation/expense system.

      ARR mgt, on the other hand, doesn't seem to know how to manage risk, recklessly employs high leverage, and seems to be awful at security selection, paying high prices for high CPR securities.

      Sentiment: Strong Buy

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