Profile: Dynex Capital Inc (DX.N)
Dynex Capital, Inc., incorporated on January 28, 2015, is an internally managed mortgage real estate investment trust (mortgage REIT), which invests in residential and commercial mortgage-backed securities on a leveraged basis. The Company's objective is to provide attractive risk-adjusted returns to its shareholders over the long term that is reflective of a leveraged fixed income portfolio with a focus on capital preservation. The Company seeks to provide returns to its shareholders through regular quarterly dividends and through capital appreciation. The Company invests in Agency and non-Agency mortgage-backed securities (MBS). MBS consist of residential MBS (RMBS), commercial MBS (CMBS) and CMBS interest-only (IO) securities. Agency MBS have a guaranty of principal payment by an agency of the United States Government or a government-sponsored entity (GSE), such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The Company invests its capital pursuant to its Operating Policies, such as investment philosophy and strategy, financing strategy and hedging strategy.
The Company's Agency RMBS investments include MBS collateralized by adjustable-rate mortgage loans (ARMS), which have interest rates that generally will adjust at least annually to an increment over a specified interest rate index and hybrid adjustable-rate mortgage loans (hybrid ARMs), which are loans that have a fixed rate of interest for a specified period (typically 3 to 10 years) and then adjust their interest rate at least annually to an increment over a specified interest rate index. Agency ARMs also include hybrid Agency ARMs that are past their fixed-rate periods or within over 12 months of their initial reset period. The Company may also invest in fixed-rate Agency RMBS from time to time. Additionally, it invests in non-Agency RMBS, which are Non-Agency RMBS are collateralized by non-conforming residential mortgage loans and are tranched into different classes of securities with payments to junior classes subordinate to senior classes. The Company invests in senior classes of non-Agency RMBS.
The Company's Agency and non-Agency CMBS are collateralized by first mortgage loans and are primarily fixed-rate securities backed by multifamily housing and other commercial real estate property types, such as office building, retail, hospitality and healthcare. Loans underlying CMBS generally are geographically diverse, are fixed-rate, mature in 08 to 18 years and have amortization terms of up to 30 years. These loans have some form of prepayment protection provisions (such as prepayment lock-out) or prepayment compensation provisions (such as yield maintenance or prepayment penalty). Non-Agency CMBS also includes securities that are backed by pools of single-family rental homes, which have variable-rates that reset monthly based on an index rate, such as London Inter Bank Offered Rate (LIBOR).
The Company's CMBS IO are interest-only securities issued as part of a CMBS securitization and represent the right to receive interest payments (but not principal cash flows) based on the unpaid principal balance of the underlying pool of commercial mortgage loans. It invests in both Agency-issued and non-Agency issued CMBS IO. CMBS IO securities have a level of prepayment protection, including absolute loan prepayment lock-outs, loan prepayment penalties, or yield maintenance requirements associated with the underlying loans similar to CMBS.
Dynex Capital Inc
4991 Lake Brook Dr Ste 100
GLEN ALLEN VA 23060-9245