CHMI - Dynex Capital: The Best-Performing Mortgage REIT Of The Year Can Continue To Outperform

Dynex Capital (DX), a mortgage REIT that invests mostly in GSE-backed MBS securities, is down just 19% this year. You may think I'm being facetious with the "just", but people who follow this sector know that down 19% year-to-date is a pretty good performance, relatively speaking. In fact, as you can see in the table below, DX is the best-performing residential mREIT this year.

This leads to the following questions:

1. Why has Dynex Capital outperformed its peers?

2. Can this outperformance continue?

I will try to answer these questions below.

A Conservatively Managed mREIT

Dynex Capital

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