Top Quality Companies To Watch For 2015

Top Quality Companies To Watch For 2015: CYS Investments Inc (CYS)

CYS Investments, Inc. is a specialty finance company created with the objective of achieving consistent risk-adjusted investment income. The Company invests in Agency residential mortgage-backed securities (RMBS) collateralized by fixed rate single-family residential mortgage loans (typically 15, 20 or 30 years), adjustable-rate mortgage loans (ARMs), which typically have coupon rates that reset monthly, or hybrid ARMs, which typically have a coupon rate that is fixed for an initial period (typically three, five, seven or 10 years) and thereafter resets at regular intervals. In addition, its investment guidelines permit investments in collateralized mortgage obligations issued by a government agency or government-sponsored entity that are collateralized by Agency RMBS (CMOs), although the Company had not invested in any CMOs as of December 31, 2011.

The Company finances its Agency RMBS investments using a diversified approach involving repurchase agreements w ith multiple commercial and investment banks. Agency RMBS are residential mortgage pass-through securities, the principal and interest of which are guaranteed by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) or the Government National Mortgage Association (Ginnie Mae). Its portfolio of Agency RMBS is backed by fixed rate mortgages and hybrid ARMs that typically have a fixed coupon for three, five or seven years, and then pay an adjustable coupon that generally resets annually over a predetermined interest rate index. As of December 31, 2011, its Agency RMBS portfolio consisted of 10 Year Fixed Rate, 15 Year Fixed Rate, 20 Year Fixed Rate, 30 Year Fixed Rate and Hybrid ARMs. On September 1, 2011, the Company acquired certain assets and entered into agreements to internalize its management (the Internalization).

Advisors' Opinion:

• [By Amanda Alix]

  As the spread ! between short-term and long-terminterest rates began to contract, strangling profits, competition for MBSes also caused prices to rise. Other agency mREITs were nervous, too. CYS Investments (NYSE: CYS  ) noted at the time that QE3 turned the Federal Reserve into the sector's biggest rival for mortgage bonds, and as spreads began to shrink, so did dividends. By December of last year, Annaly, Armour, and Capstead Mortgage (NYSE: CMO  ) had all trimmed their payouts.

• [By Amanda Alix]

  Analysts at odds over mREITs
  Financial analysts have been busy noting the underperformance of mREITs lately, especially since the Fed dropped the QE3 taper bombshell almost two weeks ago -- immediately igniting fears of rising interest rates, which would decrease the value of the trusts' legacy assets, thus dinging book values. The pain hasn't been limited to the stocks mentioned above, as CYS Investments (NYSE: CYS  ) , and even hybrids like Invesco (NYSE: IVR  ) , have been on a roller-coaster ride ever since.

• [By Kraken]

  The preferred market won't get you yields on what the mREIT preferreds offer, but I can guarantee you that investors will be able to relax knowing that they don't have to worry about volatility. This bring me CYS Investments (CYS).

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-quality-companies-to-watch-for-2015.html