Fri, Jul 26, 8:06 PM (43 days ago)
Dynex Capital, Inc. reported a decline in comprehensive income and book value for Q2 2024, primarily due to widening spreads between Agency RMBS and U.S. Treasuries. Net interest income improved slightly due to higher coupon Agency RMBS, though net interest spread remained negative due to high financing costs. The company raised $124.5 million through stock offerings, partially deployed into $551.1 million in higher coupon Agency RMBS, and reserved the remainder for potential future volatility. Total economic loss was $(0.31) per common share, with a $(0.70) decline in book value offset by $0.39 in dividends. Liquidity increased to $644.0 million, supported by cash and unencumbered Agency MBS. Leverage was 7.9 times shareholders' equity, and the company remains compliant with all debt covenants. Future outlook includes potential benefits from Federal Funds rate cuts and tighter equilibrium spreads for Agency MBS.