8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 10, 2011

Cypress Sharpridge Investments, Inc.

(Exact name of Registrant as specified in its charter)

Maryland	001-33740	20-4072657
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

437 Madison Avenue, 33^rd Floor

New York, New York 10022

(Address of principal executive offices) (Zip code)

(Registrant’s telephone number, including area code): (212) 612-3210

Not Applicable

(Former name or former address, if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01. Regulation FD Disclosure.

On May 10, 2011, Cypress Sharpridge Investments, Inc. (the “Company”) announced that the Company’s Chief Executive Officer, President and Chairman of the Board, Kevin E. Grant, will be giving a live presentation at the Tenth Annual UBS Financial Services Conference in New York City on May 10, 2011 at 8:00 a.m. (eastern time). A copy of the presentation slides is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference in its entirety.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Cypress Sharpridge Investments, Inc. Presentation Slides, dated May 10, 2011

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CYPRESS SHARPRIDGE INVESTMENTS, INC.
Date: May 10, 2011	By:	/s/ Thomas A. Rosenbloom
		Thomas A. Rosenbloom
		Secretary

INDEX TO EHXIBITS

Exhibit No.	Description
99.1	Cypress Sharpridge Investments, Inc. Presentation Slides, dated May 10, 2011

EX-99.1

Investment Outlook

May, 2011

UBS Global Financial Services Conference

May 10, 2011

Exhibit 99.1

Forward Looking Statements

1

This presentation contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended,

and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on management’s beliefs and assumptions,

current expectations, estimates and projections. Such statements, including information relating to the Company’s expectations for

future distributions and market conditions, are not considered historical facts and are considered forward-looking information under

the federal securities laws.  This information may contain words such as “believes,” “plans,” “expects,” “intends,” “estimates” or

similar expressions.

This information is not a guarantee of the Company’s future performance and is subject to risks, uncertainties and other important

factors that could cause the Company’s actual performance or achievements to differ materially from those expressed or implied by

this forward-looking information and include, without limitation, changes in the Company’s distribution policy, changes in the

Company’s ability to pay distributions, changes in the market value and yield of our assets, changes in interest rates and the yield

curve, net interest margin, return on equity, availability and terms of financing and hedging and various other risks and uncertainties

related to our business and the economy, some of which are described in our filings with the SEC.  Given these uncertainties, you

should not rely on forward-looking information.  The Company undertakes no obligations to update any forward-looking information,

whether as a result of new information, future events or otherwise.

CYS: Overview

Agency Residential Mortgage Backed Securities

Currently financing lines with 32

lenders 

Swap agreements with 16 counterparties

Company intends to distribute all or substantially all of its REIT taxable income

Scaled Management Fee: 1.0% to 1.5%

No Incentive Fee

Kevin Grant, CEO, President, Chairman

Frances Spark, CFO

Pay dividends and achieve capital appreciation throughout changing interest rate

and credit cycles

Be the most efficient Agency REIT in the market

Focus on Cost

Efficiency

Target Assets

A Real Estate Investment Trust formed in January 2006

Ample Financing

Sources

Dividend Policy

Objective

Senior Management

2

Attractive Environment Likely to Persist

Steep Curve

Creates significant positive carry

Very Low Cost of financing

Significant ROE

Hedge flexibility very important

Fed still fighting deflation

May 6, 2011

May 6, 2011

Source:   Bloomberg.

(1) As of May 6, 2011

Mortgage Yields Currently Attractive

Par-Priced

5/1

hybrid

rates

now

3.06%

(1)

30

Year

fixed

rates

now

4.14%

(1)

15 Year fixed rates now 3.35%

(1)

Hedging rates historically low

5/1

Hybrid

Net

Interest

Margin:

1/05

–

5/11

5

Year

Swap

vs.

1

Month

LIBOR:

1/05

–

5/11

3

Wide Spreads Create Good Environment

Source:   Bloomberg.

Note:

Spreads

calculated

as:

(i)

5/1

Hybrids

Index

–

50/50

3-Year

Swaps/LIBOR,

and

(ii)

5/1

Hybrids

Index

–

1-Month

LIBOR

Index.

May 6, 2011

CYS

Investment

Strategy

Simple ‘Carry

Trade’: Borrow

Short/Lend

Long

Hedged Hybrids

(i)

Unhedged

Hybrids

(ii)

5/1

Hybrids

Hedged

with

Swaps:

1/05

–

5/11

4

5

10 Year Treasury Note Auctions

11/98 –

4/11

Treasury Auction Volume

2 Year Treasury Note Auctions

2/00 –

4/11

3 Year Treasury Note Auctions

10/00 –

4/11

Source: Bloomberg, US Treasury

5 Year Treasury Note Auctions

2/00 –

4/11

7 Year Treasury Note Auctions

2/00 –

4/11

30 Year Treasury Note Auctions

2/00–

4/11

Hawkish

Dovish

Neutral

Hoenig

Bullard

Plosser

Fisher

Lacker

Duke

Tarullo

Dudley

Pianalto

Kohn

Kocherlakota

Lockhart

Evans

Pianalto

Yellen

Rosengren

Raskin

Bernanke

Obama

Nominee

Governors

2010 Voters

2011 Voters

2012 Voters

Sources: Macroeconomic Advisers, LLC,  Bank of America Merrill Lynch, Bloomberg, Wall Street Journal, Indiana University,  Marketwatch, Thomson Reuters, Federal Reserve Bank of Atlanta,

Federal

Reserve Bank of

Chicago,

Federal

Reserve

Bank

of

Cleveland,

Maryland

Consumer

Rights

Coalition,

Boston

Globe,

Businessweek,

Newsweek,

Washington

Post,

CNBC.

Fed Board has Become More Dovish

Diamond

Williams

6

Other Central Banks are Waging the Inflation War

Hawkish

Dovish

Neutral

Other Central Banks are Waging the Inflation War

Xiaochuan

China

Bernanke

USA

Shirakawa

Japan

Trichet

EU (Outgoing)

Canada

Carney

Australia

Stevens

New Zealand

Bollard

Draghi

EU (Incoming)

Tombini

Brazil

Subbarao

India

(Outgoing)

Consequences: US Rates Likely To Be Lower For Longer

7

Source:

S&P,

Fiserv,

and

Macromarkets

LLC

/

Haver

Analytics,

BLS,

Challenger,

Gray

&

Christmas

U.S. Retail Gasoline Price: Regular Grade

2006 –

Present

%

Capacity Utilization: Manufacturing

2006 –

Present

%

Unemployment Rate

1940-present

%

Economic Recovery Below Normal Pace

CPI-U All Items (Less Food and Energy)

2004 –

Present

% Change -

Year to Year

Total Nonfarm Private Payroll Employment

2000-present

000’s

Challenger, Gray & Christmas, Inc.

Job Cut Announcement Report

1990 –

Present

8

9

Source: Bloomberg  5/6/11

Economics of Forward Purchase

Example:

15

yr.

3

½%

drop

=

9/32

pt.

per

month

1

9/32 represents a discount to the purchase price of the security of approximately $0.30 per month from trade date to settlement date.

1

$0.35

$0.55

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

Oct-09

Jan-10

$0.55

Apr-10

$0.60

Jul-10

$0.60

Oct-10

$0.60

Dec-10

Portfolio Composition and Results

Total Agency RMBS: $8.5 million

$0.60

Apr-11

1

As of 3/31/11

CYS Agency RMBS Portfolio

1

CYS

Dividends:

10/09

–

4/11

10

11

Portfolio Characteristics

* As of 3/31/11

Par Value

Fair Value

Weighted Average

Asset Type

(in thousands)

Cost/Par

Fair

Value/Par

MTR

(1)

Coupon

CPR

(2)

15-Year Fixed Rate

$4,033,535

$4,123,587

$102.21

$102.23

N/A

3.88%

11.0%

20-Year Fixed Rate

635,489

643,471

102.36

101.26

N/A

4.14%

3.9%

30-Year Fixed Rate

993,473

1,048,091

104.36

105.50

N/A

5.20%

33.2%

Hybrid ARMs

2,609,512

2,674,050

102.24

102.47

62.9

3.37%

14.40%

Total/Weighted Average 

$8,272,009

$8,489,199

$102.49

$102.63

62.9

(3)

3.90%

11.4%

CYS Portfolio Characteristics*

“Months to Reset” is the number of months remaining before the fixed rate on a hybrid ARM becomes a variable rate. At the end of the fixed period, the variable rate 

will be determined by the margin and the pre-specified caps of the ARM. 

CPR is a method of expressing the prepayment rate for a mortgage pool that assumes that a constant fraction of the remaining principal is prepaid each month or 

year. Specifically, the constant prepayment rate is an annualized version of the prior three month prepayment rate.  Securities with no prepayment history are excluded 

from this calculation. 

Weighted average months to reset of our Hybrid ARM portfolio.

(1)

(2)

(3)

History of Transparent and

Consistent Financial Reporting

CYS uses Financial Reporting for Investment Companies

CYS financial reporting -

Best in Class

Schedule of investments

NAVs

have reflected mark-to-market accounting since inception

No OCI account on balance sheet

Realized and unrealized losses taken through income statement

Losses expensed in period incurred

12

Historical Financials

13

3/31/2011

12/31/2010

Income Statement Data

(in 000's)

Investment

Income

–

Interest

Income

$40,980

$25,025

Total expenses

7,522

5,306

Net Investment Income

33,458

19,719

Net gain (loss) from investments

19,820

(66,125)

Net gain (loss) from swap and cap contracts

(1,181)

29,138

Net Income (Loss)

$52,097

($17,268)

Net Income (Loss) Per Common Share (diluted)

$0.74

($0.38)

Distributions per Common Share

$0.60

$0.60

Non-GAAP

Measure

(in 000's)

Core Earnings (1)

$21,599

$12,396

Non-GAAP Reconciliation

NET INCOME

$52,097

(17,268)

Net (gain) loss from investments

(19,820)

$66,125

Net (gain) loss on termination of swap contracts

-

$13,427

Net unrealized (appreciation) depreciation on swap and cap contracts

($10,678)

($49,888)

Core Earnings

$21,599

$12,396

Balance Sheet Data

(in 000's)

3/31/2011

12/31/2010

Cash and Cash Equivalents

$6,001

$1,510

Total Assets

$8,787,632

$6,389,267

Repurchase Agreements

$5,364,030

$3,443,843

Net assets

$969,266

$690,339

Quarter Ended

As of

(1) Core Earnings is defined as net income (loss) excluding net realized gain (loss) on investments, net unrealized appreciation (depreciation) on investments, net realized gain (loss) on termination of swap

contracts and unrealized appreciation (depreciation) on swap and cap contracts. 

(2) Our average yield on Agency RMBS for the period was calculated by dividing our interest income from Agency RMBS by our average Agency RMBS.

(3) Average cost of funds and hedge for the period was calculated by dividing our total interest expense, including our net swap and cap interest income (expense), by our average repurchase agreements.

(4) Interest rate spread net of hedge for the period was calculated by subtracting our average cost of funds and hedge from our average yield on Agency RMBS

(5) Operating expense ratio is calculated by dividing operating expenses by average net assets

(6) Leverage ratio was calculated by dividing total liabilities by net assets

* All percentages are annualized. 

(in 000’s)

Key Portfolio Statistics*

Average Yield on Agency RMBS (2)

3.27%

3.23%

Average Cost of Funds & Hedge (3)

1.44%

1.49%

Interest Rate Spread Net of Hedge (4)

1.83%

1.74%

Operating Expanse Ratio (5)

2.11%

2.28%

Leverage Ratio (at period end) (6)

8.1:1

8.3:1

Net assets per common share

$11.74

$11.59

Financial Highlights

Steep yield curve and attractive spreads in target assets

Tailwinds likely to continue

Investment Company accounting provides transparency

14

UBS Global Financial Services Conference

May 10, 2011

Investment Outlook

May, 2011