With the rally in rates, MBS agency prices have recovered almost the entire decline since year end. Hence CYS' book value is currently likely around the $13.25+ level by my estimate, although it was likely lower than that at the end of 1Q. CYS' book includes very liquid securities obviousy so on a snapshot basis you are looking at owning this at a 12% discount to NAV. This is among the cheapest of all agency mreits. The 11% dividend isn't too shabby in the absolute sense given the lower extension risk associated with the company's 15 yr heavy agency mix. Looks like pretty good risk/reward to me.
Agree, 11% is good. Employment report and continued Fed. Commodities (iron ore, coal, steel, alum, and anything else) is dirt cheap, no signs of inflation. As long as Economy limps along you are Good with CYS