2024-06-13 12:00:16 ET
Summary
- The Agency MBS sector has had poor performance in the past decade, leading to low prices and high yields.
- At 20-year lows, agency MBS is a very attractive investment option today.
- Dynex Capital, Inc. is a mortgage REIT focusing on agency MBS, with a smaller, more agile portfolio than its counterparts.
Co-authored by Rida Morwa.
Agency MBS (mortgage-backed securities) is a sector that we have been extremely bullish on. Back in May, we reiterated our bullish outlook on the MBS sector offering Dynex Capital, Inc. (DX) as an option to gain exposure. Since then, DX has been getting more aggressive issuing a secondary offering, suggesting that management is buying more. A bet that the Fed is at the minimum done hiking rates....
Read the full article on Seeking Alpha
For further details see:
Dynex: Issuing Equity Below NAV Can Be A Good Thing