Dynex Capital Stock Earnings Reports

Dynex reported strong quarter results driven by disciplined deployment into Agency RMBS and wider spreads. Key investor takeaways: net economic return was 10.3% for the quarter and 11.5% year-to-date; year-to-date total shareholder returns ~20% (23% over one year, ~72% over three years with dividends reinvested). The firm realized over $130 million of portfolio gains in Q3, raised $254 million of new common equity in the quarter ($776 million YTD), and grew the portfolio ~10% versus Q2 and >50% since year-start. Liquidity remains conservative (~$1+ billion, >50% of equity). Management highlights that agency RMBS offers attractive risk-adjusted yields (ROEs in the high teens net of hedging; mid-20s gross on many coupons), and they continue a raise-and-deploy strategy while emphasizing capital management, liquidity, and downside protection (select option hedging). They are increasing Agency CMBS exposure modestly and see longer-term policy and supply dynamics that could compress agency spreads. Key risks called out: uncertain Fed/rate path, potential consumer credit deterioration, private credit vulnerabilities, and prepayment volatility tied to recent mortgage rate moves. Management strengthened alignment with shareholders by personally buying shares and plans to expand the New York presence for trading/portfolio talent. Overall, the quarter reflects execution on a through-the-cycle, shareholder-aligned strategy with meaningful capital raising and disciplined risk/hedge posture, while remaining vigilant to macro and credit tail risks.