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): June 7, 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 June 7, 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 REITWeek: NAREIT’s Investor Forum on Tuesday, June 7, 2011, at approximately 11:45 a.m. (EDT). 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 June 7, 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: June 7, 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 June 7, 2011

EX-99.1

June 7, 2011

Exhibit 99.1

1

Forward Looking Statements

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.

2

CYS: Overview

Focus on Cost

Efficiency

Target Assets

Agency Residential Mortgage Backed Securities

A Real Estate Investment Trust formed in January 2006

Ample Financing

Sources

Currently

financing

lines

with

32

lenders

Swap agreements with 16 counterparties

Dividend Policy

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

Scaled Management Fee: 1.0% to 1.5%

No Incentive Fee

Objective

Senior Management

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

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

June 3, 2011

June 3, 2011

Source:   Bloomberg.

(1) As of June 3, 2011

Mortgage Yields Currently Attractive

Par-Priced 7/1 hybrid rates now 2.65%

(1)

30 Year fixed rates now 3.97%

(1)

15 Year fixed rates now 3.24%

(1)

Hedging rates historically low

5/1

Hybrid

Net

Interest

Margin:

1/05

–

6/11

5 Year Swap vs. 1 Month LIBOR: 1/05 –

6/11

3

4

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.

June 3, 2011

CYS

Investment

Strategy

5/1

Hybrids

Hedged

with

Swaps:

1/05

–

6/11

Simple ‘Carry

Trade’: Borrow

Short/Lend

Long

Hedged Hybrids

(i)

Unhedged

Hybrids

(ii)

5

10 Year Treasury Note Auctions

11/98

–

5/11

Treasury Auction Volume

2 Year Treasury Note Auctions

2/00

–

5/11

3 Year Treasury Note Auctions

10/00

–

5/11

Source: Bloomberg, US Treasury

5 Year Treasury Note Auctions

2/00

–

5/11

7 Year Treasury Note Auctions

2/00

–

5/11

30 Year Treasury Note Auctions

2/00–

5/11

Hawkish

Dovish

Neutral

Hoenig

Bullard

Plosser

Fisher

Lacker

Duke

Tarullo

Dudley

Pianalto

Kohn

Kocherlakota

Lockhart

Evans

Pianalto

Yellen

Rosengren

Raskin

Bernanke

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

Williams

?

Obama

Nominee

6

Hawkish

Dovish

Neutral

Other Central Banks are Waging the Inflation War

Xiaochuan

China

Bernanke

USA

Shirakawa

Japan

Trichet

EU (Outgoing)

Australia

Stevens

New Zealand

Bollard

Draghi

EU (Incoming)

Tombini

Brazil

Subbarao

India

(Outgoing)

Consequences: US Rates Likely To Be Lower For Longer

Canada

Carney

7

8

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

1/1/40-5/1/11

%

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

9

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.

Source: Bloomberg 6/3/11

Economics of Forward Purchase

Example: 15 yr. 3 ½% drop = 10/32 pt. per month

1

9

CYS Dividends: 10/09 –

7/11²

$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

CYS Agency RMBS Portfolio¹

Total Agency RMBS: $8.5 million

Apr-11

1

As of 3/31/11

2

CYS paid quarterly dividends of $0.35 per share of common stock on October 21, 2009, $0.55 per share of common stock on January 27, 2010 and April 28, 2010, and $0.60 per share of

common stock on July 28, 2010, October 20, 2010, December 29, 2010, and April 20, 2011.  On June 6, 2011, CYS declared a dividend of $0.60 per share of common stock for the second

quarter of 2011. The dividend will be paid on July 27, 2010 to stockholders of record on June 22, 2010.

$0.60

Jul-11

$0.60

10

11

Portfolio Characteristics

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*

(1)

“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.

(2)

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.

(3)

Weighted average months to reset of our Hybrid ARM portfolio.

* As of 3/31/11

12

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

13

Historical Financials

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 (in 000's)

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

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

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

Net assets per common share

$11.74

$11.59

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.

14

Financial Highlights

Steep yield curve and attractive spreads in target assets

Tailwinds likely to continue

Investment Company accounting provides transparency

June 7, 2011