Annaly Capital Management, Inc. (NLY): 3 Agency Mortgage REITs Insiders Love

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CYS Investments

The month of February saw significant insider buying at CYS Investments Inc (NYSE:CYS). Insiders, including the CEO of the company bought shares, demonstrating their confidence in the company’s future. Overall, over 240k shares of the company were purchased since the beginning of the year. The CEO increased his stake by adding around 159k shares.

CYS Investments operates as a pure-play mortgage REIT and has large chunks of 15-year fixed rate Agency paper. The company is also invested in hybrid ARMs and posted prepayments speeds of 17.6% at the end of the fourth quarter of 2012. This is lower than Annaly Capital Management, Inc. (NYSE:NLY) prepayment speeds of 19%.

Conclusion

Mortgage rates have climbed since the beginning of the year. These increased rates will lead the aforementioned mREITs to post higher spreads in the coming quarters. Looking at the improved situation, insiders are busy increasing their stakes in Annaly Capital, American Capital and CYS Investments. Therefore, I believe it is time for you to add Agency mortgage REITs in your regular income portfolio.

The article 3 Agency Mortgage REITs Insiders Love originally appeared on Fool.com and is written by Adnan Khan.

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