Exhibit 99.2

About Us:

We invest in a leveraged portfolio of almost exclusively residential adjustable-rate mortgage (“ARM”) securities issued and guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. ARM securities reset to more current interest rates within a relatively short period of time allowing for:

• the expansion of financing spreads during periods of falling interest rates,

• the recovery of financing spreads diminished during periods of rising interest rates, and

• smaller fluctuations in portfolio values from changes in interest rates compared to fixed-rate mortgage securities.

Experienced Management

Formed in 1985, Capstead’s experienced management team has over 80 years of combined mortgage finance industry experience.

Quality Assets

Agency-guaranteed residential mortgage securities are considered to have little, if any, credit risk, particularly given federal government support for Fannie Mae and Freddie Mac. These mortgage investments are highly liquid and can be financed with multiple funding providers through standard repurchase arrangements.

Proven Strategy

We prudently leverage our portfolio to provide the financial flexibility needed to successfully manage through periods of changing market conditions.

Third Quarter Highlights

• Reported earnings of $23.7 million, or $0.27 per diluted common share.

• Book value of $11.77 per common share at September 30, 2010.

• Portfolio increased $264 million to $7.94 billion at September 30, 2010.

• Portfolio leverage increased to 6.37 times long-term investment capital at September 30, 2010.

• Total financing spreads averaged 1.40%, absorbing the last of the GSE buyouts of seriously delinquent loans.

• Portfolio runoff moderated significantly after conclusion of GSE buyout programs in July 2010.

Quarterly Results

(In thousands, except per share data)	Sept. 30, 2010			June 30, 2010			March 31, 2010			Dec. 31, 2009*			Sept. 30, 2009
Interest income:
Mortgage securities and similar investments	$	40,614		$	47,634		$	60,150		$	70,458		$	74,695
Other interest-earning assets		111			135			92			76			69
		40,725			47,769			60,242			70,534			74,764
Interest expense:
Repurchase arrangements and similar borrowings		(11,096	)		(11,146	)		(13,368	)		(21,697	)		(26,802	)
Unsecured borrowings		(2,186	)		(2,187	)		(2,187	)		(2,187	)		(2,186	)
		(13,282	)		(13,333	)		(15,555	)		(23,884	)		(28,988	)
Net interest margins		27,443			34,436			44,687			46,650			45,776
Net income		23,673			29,759			40,437			2,595			42,085
Income (loss) available to common stockholders		18,615			24,700			35,379			(2,464	)		37,027
Diluted earnings (loss) per common share		0.27			0.35			0.51			(0.04	)		0.56
Common dividends per share		0.26			0.36			0.50			0.54			0.56
Common equity raises		—			—			10,423			1,715			71,288
Common shares outstanding (EOQ)		70,129			70,129			70,116			69,319			69,098

* In December 2009 the Company recorded $40 million in impairment and related charges, which nearly eliminated exposure to commercial real estate loans.

Analysts

Firm	Rating*
Deutsche Bank		Hold
FBR Capital Markets		Outperform
JMP Securities LLC		Market Outperform
Keefe, Bruyette & Woods		Outperform
Lazard Capital		Hold
Macquarie		Outperform
RBC Capital Markets		Outperform
Sandler O’ Neill		Hold
Sterne Agee		Neutral
Stifel Nicolaus		Buy
Wunderlich		Hold

Ownership

Institution	% of shares Outstanding**
Wells Capital Management Inc.		7.8	%
BlackRock Fund Advisors		5.0	%
Vanguard Group Inc.		3.7	%
RREEF America LLC		3.4	%
GW Capital Inc.		3.1	%
Thompson Siegel & Walmsley LLC		2.8	%
Highland Capital Management LP		2.4	%
State Street Global Advisors, Inc.		2.2	%
Wellington Management Co. LLP		2.2	%
Northern Trust Global Investments Ltd.		2.1	%

* As of November 3, 2010

** % based on available filings as of November 3, 2010 and shares outstanding as of September 30, 2010.

Common Stock Information

NYSE Ticker: CMO
Price as of 11/3/10:	$11.34
52-wk High/Low:	$14.68/$8.12
3Q Dividend:	$0.26
Dividend yield:	9.2%
(based on annualized 3Q dividend)
3Q Avg Daily Vol:	893,000 shares

Series A/Series B

Preferred Stock Info

NYSE Ticker: CMOPRA / CMOPRB

Prices as of 11/3/10: $20.40/$14.10

Call Price: $16.40 / $12.50

Liquidation Value: $16.40 / $11.38

Conversion Ratio: 1.6479 / 0.6366

Annualized Dividend: $1.60 / $1.26