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Group 1 - The article discusses the preferred stock and baby bond market activity, providing both bottom-up insights on individual news and events and top-down analysis of the broader market [1] - It highlights the importance of yield and risk management considerations in the Income Portfolios offered by the company [1] - The article encourages the use of Interactive Investor Tools to navigate various markets including BDC, CEF, OEF, preferred, and baby bonds [1] Group 2 - The company offers Investor Guides for CEFs, Preferreds, and PIMCO CEFs to assist investors [2] - A promotional offer for a 2-week free trial is available, allowing potential investors to explore services without risk [2]

Group 1 - Dynex Capital, Inc. (NYSE: DX) has been frequently analyzed, indicating a preference for an active investment approach rather than a passive one [1] - Previous analysis suggested that Dynex would benefit from elevated interest rates and a de-risked portfolio [1]

Financial Data and Key Metrics Changes - Book value ended the quarter at $12.70 per share, with an economic return of 1% for the quarter and 7.4% for the year [18] - Common equity capital grew to over $1 billion, with a year-over-year growth of over 40% [12] - The company raised $64 million in new capital during the fourth quarter [21] Business Line Data and Key Metrics Changes - Interest income increased from the third quarter due to the addition of higher-yielding assets [18] - The leverage ratio increased from 7.6% to 7.9% during the quarter as the company bought $900 million in 30-year mortgage-backed securities [31] Market Data and Key Metrics Changes - The investment environment remains favorable, with nominal spreads on agency RMBS in the range of 135 to 140 basis points over seven-year treasuries and 175 to 185 over swaps [35] - The company expects net issuance in 2025 to remain modest in the $200 billion to $250 billion range [36] Company Strategy and Development Direction - The company is focused on delivering value at the intersection of capital markets and housing finance, with a strategy to leverage expertise in residential real estate mortgage markets [7][46] - The management team emphasizes proactive engagement and flexibility to navigate policy changes [45] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic landscape is evolving quickly, with expectations for a wider distribution of rates and potential volatility [33] - The company is preparing for GSE reform discussions, which could create opportunities for capital deployment [28] Other Important Information - The company has added three new Board members with strong skill sets across technology, risk, asset management, and strategy [12] - The management team is co-invested alongside shareholders, reinforcing their commitment to delivering value [46] Q&A Session Summary Question: Drivers of the shift from treasury futures to swaps - The shift was driven by swap spreads reaching levels that compensate for potential fiscal issuance, adding 200 to 300 basis points to marginal ROE [51] Question: Update on book value - Book value has remained essentially flat since the end of the quarter [55] Question: Strategy for growing the capital base in 2025 - The strategy is predicated on the investment environment, focusing on capital deployment when ROEs exceed long-term dividend levels [59] Question: MBS market pricing in GSE reform - The MBS market currently prices in a small percentage risk of meaningful changes, with spreads remaining tight historically [69] Question: Shift in hedge portfolio and future expectations - The hedge portfolio is currently positioned as desired, with no immediate plans to shift further into swaps [77] Question: Prepayment environment and risks - The company is focused on security selection to avoid segments that are highly refinanceable, which could impact spreads [93] Question: Implications of new FHFA director on GSEs - The ideological biases suggest a smaller footprint for GSEs, potentially increasing private label issuance [100]

Financial Data and Key Metrics Changes - The book value at the end of Q4 was reported at $12.70 per share, with an economic return of 1% for the quarter and 7.4% for the year [13] - The common equity capital grew to over $1,000,000,000, reflecting a year-over-year growth of over 40% [10] - The leverage increased from 7.6% to 7.9% during Q4 as new pools and TBAs were added [21] Business Line Data and Key Metrics Changes - Interest income increased due to the addition of higher-yielding assets, while older lower-yielding assets continued to pay down [14] - The company raised $64,000,000 in new capital during Q4, maintaining ample liquidity to deploy into higher yield markets [15] Market Data and Key Metrics Changes - The investment environment remains favorable, with mortgage spreads in the range of 130 to 140 basis points over 7-year treasuries and 175 to 185 over swaps [26] - The company noted that bond fund flows have been positive at higher yields, which could accelerate given the sizable holdings in money market funds [26] Company Strategy and Development Direction - The company is focused on delivering value at the intersection of capital markets and housing finance, with a strong emphasis on agency-backed single-family residential MBS [5] - The management team is committed to proactive engagement with policymakers to navigate the evolving policy environment [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver dividends driven by current and future returns, emphasizing the importance of scale and disciplined capital deployment [33] - The macroeconomic landscape is evolving, with expectations of a wider distribution of rates and potential volatility due to government policy changes [23] Other Important Information - The company has generated the leading total shareholder return among agency-focused mortgage REITs over 1, 3, and 5 years, even during challenging market conditions [11] - The management team has been actively engaged with Washington to monitor developments related to GSE reform and its implications for housing finance [20] Q&A Session Summary Question: Can you walk through the drivers of the shift from treasury futures to swaps this quarter and any impact that has on spreads? - The shift was driven by swap spreads reaching levels that compensate for potential fiscal issuance, with an expected addition of 200 to 300 basis points of marginal ROE from this change [37][38] Question: Can we get an update on book value quarter to date, any big changes? - The book value has remained essentially flat since the end of the quarter [39] Question: Can you talk about your strategy for continuing to grow the capital base in 2025? - The strategy is predicated on the investment environment, focusing on accretive capital deployment when ROEs exceed long-term dividend levels [43] Question: How do you think the MBS market is currently pricing in the potential for GSE reform? - The MBS market appears to be pricing in a small percentage risk of meaningful changes, with spreads currently reflecting a low probability of significant shifts [46] Question: If we see swap spreads stay around current levels, would you expect that shift to continue to move more into swaps? - The hedge portfolio is currently positioned as desired given the market environment, with no immediate plans for further shifts [53] Question: How do you still price in the risk to spreads related to short-term rallies and rates? - The company is preparing for segments of the market that are less refinanceable, focusing on security selection to mitigate risks [67] Question: With the new FHFA Director, where do you see the origination footprint of the GSEs moving? - It is difficult to predict, but a smaller footprint and increased private label issuance are logical expectations based on ideological biases [72]

Fourth Quarter and Full Year 2024 Earnings Presentation January 27, 2025 Safe Harbor Statement NOTE: This presentation contains certain statements that are not historical facts and that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this presentation addressing expectations, assumptions, beliefs, projections, estimates, future plans, strategies, and events, developments that we expect or anticipate will occur in the future, a ...

Group 1: Earnings Performance - Dynex Capital reported quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.38 per share, representing an earnings surprise of -73.68% [1] - The company posted revenues of $6.89 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 27.96%, compared to year-ago revenues of -$2.28 million [2] - Over the last four quarters, Dynex Capital has not surpassed consensus EPS estimates and has consistently missed revenue estimates [2] Group 2: Stock Performance and Outlook - Dynex Capital shares have lost about 0.2% since the beginning of the year, while the S&P 500 has gained 3.7% [3] - The company's earnings outlook will be crucial for future stock movements, with current consensus EPS estimates at $0.37 on $14.26 million in revenues for the coming quarter and $1.87 on $95.53 million in revenues for the current fiscal year [7] - The current Zacks Rank for Dynex Capital is 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The REIT and Equity Trust industry, to which Dynex Capital belongs, is currently in the bottom 40% of the Zacks industry rankings, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

PRESS RELEASE FOR IMMEDIATE RELEASE CONTACT: Alison Griffin January 27, 2025 (804) 217-5897 DYNEX CAPITAL, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS GLEN ALLEN, Va. -- Dynex Capital, Inc. ("Dynex" or the "Company") (NYSE: DX) reported its fourth quarter and full year 2024 financial results today. Management will host a call today at 10:00 a.m. Eastern Time to discuss the results and business outlook. Details to access the call can be found below under "Earnings Conference Call." Financial Per ...

Industry and Company Focus - The financial researcher focuses on innovation, disruption, growth buy-outs, and value stocks, with a particular interest in high-tech and early-growth companies [1] - The researcher provides insights into current industry events and news, aiming to uncover investment opportunities through thorough analysis [1] Analyst's Position and Disclosure - The analyst holds a beneficial long position in DX shares through stock ownership, options, or other derivatives [2] - The article reflects the analyst's personal opinions and is not influenced by compensation or business relationships with mentioned companies [2] Platform Disclosure - Seeking Alpha emphasizes that past performance does not guarantee future results and does not provide specific investment recommendations [3] - The platform's analysts include both professional and individual investors, who may not be licensed or certified by regulatory bodies [3]

Core Insights - The article emphasizes the importance of consulting a registered financial advisor before making investment decisions, highlighting that the content is meant for discussion rather than financial advice [2][3] Group 1 - The article does not contain any specific company or industry analysis, focusing instead on disclaimers and the nature of the content provided [1][2][3]