2024-05-29 16:28:58 ET
Summary
- We think Dynex, Inc.'s asset-liability relationship has improved since our latest coverage.
- Asset-level returns might be sustained by rising risks in the mortgage space.
- Receding repo rates might assist DX's funding costs.
- However, we remain concerned by the fund's recurring net loan losses. Moreover, we think DX's quantitative risk metrics are undesirable.
- Hold rating maintained.
Our coverage today revisits our stance on Dynex Capital, Inc. ( DX ) , a mortgage REIT we last covered in February . Back then, we assigned a Hold rating to the asset due to a forecasted drop and economically driven inversion of the yield curve....
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For further details see:
Dynex: Maintaining Hold, Despite An Enhanced Asset-Liability Relationship