CYS Investments Inc (NYSE:CYS) sees red, edging on green
Mortgage REIT’s got a pounding last Friday and the start of this week saw them getting hammered to the ground. Almost all the players got shoved around to a certain degree, but the agency trusts got shoved the hardest. CYS Investments Inc (NYSE:CYS) dived almost 8.00%, American Capital Agency dipped 6.00%, and ARR lost more than 8%.
It was only in Tuesday’s trading that CYS saw some breath being pumped into it and it gained 1.75%. The shares opened at a price of $6.85, touched an intraday high of $7.03 and closed at $6.77. Almost 8.32 million shares were traded in Tuesday’s session while the average volume of shares traded over 30 days was 3.53 million. The company has a market cap of $1.23 billion.
So, what was it that exactly happened on Friday and Monday? Well, it was a bunch of things that caused the dip in a sector that has gone through a great deal of angst lately. The sort of positive jobless claims announcement last Friday had showed a 15,000 decrease in new unemployment-claims from the previous week. This was the backdrop for the earthquake that was to follow and the mREITs began their spin into the bowels of the earth.
Another factor that added to the shakeup was news that Larry Summers might be the favored replacement for Ben Bernanke, in the Federal Reserve Chair. He is considered to be more likely to accelerate the taper, than Janet Yellen, his rival.
Monday dawned to some more negative action when 10 year Treasury yields planed for a short while at 2.0% which was the highest level in 2 years.
Everyone is on edge as the minutes from the Federal Open Market Committee meeting that was held in July, will be released. Today, investors and analysts will hope to find some evidence of a taper timeline which will help them plan accordingly. Irrespective of what the decision is, the fact remains that it is going to take a while for things to settle down.