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CYS Investments, Inc. announces financial results.

NEW YORK, NY: CYS Investments, Inc. announced financial results with December 31, 2017 book value per common share of $8.38, after declaring a $0.25 dividend per common share on December 8, 2017.

Core Earnings plus Drop Income was $33.6 million ($29.0 million Core Earnings and $4.6 million Drop Income), or $0.22 per diluted common share ($0.19 Core Earnings and $0.03 Drop Income).

Our transition to a higher weighting of 30-year Agency RMBS, which is priced off of the longer-end of the yield curve, from 15-year securities, which are priced off the front-end of the yield curve, during the year and in the Fourth Quarter helped soften the effect of Fourth Quarter price declines spurred by rising short-term rates and the flattening yield curve. The yield on 5-year U.S. Treasuries climbed 27 bps during the Fourth Quarter to end the year at 2.21%, while yields on 10-year U.S. Treasuries rose only 8 bps for the same period to end the year at 2.41%. Prices of Agency RMBS dropped in the Fourth Quarter as rates moved higher. The price of generic 30-year 3.5% Agency RMBS fell $0.32 during the Fourth Quarter, while the price of 15-year 3.0% Agency RMBS dropped $0.84 for the period.

During the Fourth Quarter, we took advantage of "special" financing in the U.S. Treasury market in the form of negative interest rates, and replaced some of our 15-year Agency RMBS holdings with 3-year U.S. Treasuries as the market provided very attractive, negative financing rates. This repositioning resulted in lower price volatility in our overall investment portfolio, while

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Article Type:Financial report
Date:Feb 24, 2018
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