Dynex Capital's Q3 book value declines, reports loss
DX•Dynex Capital reported a sequential decline in Q3 book value per share and a loss of $1.34 per share. It raised $384 million in capital and expanded its agency mortgage-backed securities portfolio by $3.2 billion.
1. Q3 results
Dynex Capital reported a sequential decline in book value per share and a Q3 loss per share of $1.34. Net interest income was $101.56 million.
2. Portfolio and outlook
The company said wider agency mortgage-backed securities spreads pressured book value and asset valuations, partly offset by gains on its interest-rate hedging portfolio. Higher interest income reflected increased capital deployment into agency MBS and 10% growth in average interest-earning assets. Dynex said current agency mortgage markets offer attractive forward-return opportunities, with stable financing and strong technical conditions.
