Dallas, Texas 12/25/2013 (FINANCIALSTRENDS) – In the trading session on Tuesday there was a drop of 1.17% in CYS Investments Inc (NYSE:CYS). The shares opened at $7.63, climbed to an intraday high of $7.70 and closed at $7.60. Close to 1.19M shares were traded on Tuesday and the average volume of 3.04M shares got traded over a period of 30 days. The 52-week low of CYS Investments Inc (NYSE:CYS) shares is $6.74 while the 52-week high stands at $13.08. The company has a market capitalization of $1.27 billion.
About the company
CYS Investments Inc (NYSE:CYS) is a specialty finance-company that has been created with the objective to achieve consistent risk-adjusted investment-income. It invests in Agency RMBS that has been collateralized by a fixed rate single-family residential mortgage loan (typically this could be 15, 20 / 30 years), adjustable-rate mortgage-loans or ARM’s which generally have coupon rates that are reset on a monthly basis/ hybrid ARMs, which generally have a coupon-rate that has been fixed for the initial period (typically 3,5/7/10 years) and thereafter it resets at very regular intervals.
In addition to this, the company’s guidelines also permit investments in collateralized-mortgage obligations that have issued by a government-agency or a government-sponsored entity that have been collateralized by Agency RMBS, although CYS Investments Inc (NYSE:CYS) had not invested in any CMOs as of 31 December 2011.
CYS Investments Inc (NYSE:CYS) finances Agency RMBS investments with the use of a diversified approach that involves repurchase agreements that have multiple commercial & investment banks. Agency RMBS are the residential mortgage pass-through-securities. The principal and the interest of which are guaranteed by Federal National Mortgage Association or Fannie Mae, the Federal Home Loan Mortgage Corporation or Freddie Mac or the Government National Mortgage Association/ Ginnie Mae. CYS Investments Inc (NYSE:CYS)’s portfolio of Agency-RMBS is backed by fixed-rate mortgages & hybrid ARMs that have a fixed coupon for 3/5/7years.
