Dynex Capital Inc (DX) 2024 Q2 法說會逐字稿

Thank you for standing by. My name is Erik, and I will be your conference operator today. At this time, I would like to welcome everyone to the Dynex Capital second-quarter earnings conference call. (Operator Instructions)

謝謝你的支持。我叫艾瑞克，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 Dynex Capital 第二季財報電話會議。（操作員說明）

I would now like to turn the call over to Alison Griffin, Vice President of Investor Relations. Please go ahead.

我現在想將電話轉給投資者關係副總裁艾莉森·格里芬 (Alison Griffin)。請繼續。

Good morning, and thank you for joining us for Dynex Capital's second-quarter 2024 earnings call. The press release associated with today's call was issued and filed with the SEC this morning, July 22, 2024. You may view the press release on the homepage of the Dynex website at dynexcapital.com, as well as on the SEC's website at sec.gov.

早安，感謝您參加 Dynex Capital 的 2024 年第二季財報電話會議。與今天的電話會議相關的新聞稿已於 2024 年 7 月 22 日上午發布並提交給 SEC。您可以在 Dynex 網站 dynexcapital.com 主頁以及 SEC 網站 sec.gov 上查看新聞稿。

Before we begin, I wish to remind you that this conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words believe, expect, forecast, anticipate, estimate, project, plan, and similar expressions identify forward-looking statements that are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified.

在開始之前，我想提醒您，本次電話會議可能包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。「相信」、「期望」、「預測」、「預期」、「估計」、「項目」、「計劃」和類似表達等詞語表示前瞻性陳述，這些陳述本質上受到風險和不確定性的影響，其中一些風險和不確定性是無法預測或量化的。

The company's actual results and timing of certain events could differ considerably from those projected and/or contemplated by those forward-looking statements as a result of unforeseen external factors or risks. For additional information on these factors or risks, please refer to our disclosures filed with the SEC, which may be found on the Dynex website under Investor Center as well as on the SEC's website.

由於不可預見的外部因素或風險，公司的實際結果和某些事件的時間安排可能與這些前瞻性陳述的預測和/或預期有很大差異。有關這些因素或風險的更多信息，請參閱我們向 SEC 提交的披露信息，這些信息可以在 Dynex 網站的投資者中心以及 SEC 的網站上找到。

This conference call is being broadcast live over the Internet with a streaming slide presentation, which can be found on the webcast link on the homepage of our website. The presentation may also be referenced under quarterly reports on the Investor Center page.

本次電話會議透過串流幻燈片簡報透過網路進行現場直播，您可以在我們網站主頁的網路廣播連結上找到此簡報。此簡報也可以在投資者中心頁面的季度報告中引用。

Joining me on the call is Byron Boston, Chairman and Co-Chief Executive Officer; Smriti Popenoe, President, Co-Chief Executive Officer and Chief Investment Officer; and Rob Colligan, Executive Vice President, Chief Financial Officer and Chief Operating Officer.

與我一起參加電話會議的是董事長兼聯席執行長拜倫波士頓 (Byron Boston)； Smriti Popenoe，總裁、聯合執行長兼首席投資長； Rob Colligan，執行副總裁、財務長兼營運長。

It is now my pleasure to turn the call over to Byron.

現在我很高興將電話轉給拜倫。

Thank you, Alison, and good morning, everyone. At Dynex Capital, we continue to build a company that will deliver consistent monthly cash income and compelling long-term returns for our shareholders.

謝謝你，艾莉森，大家早安。在 Dynex Capital，我們繼續打造一家為股東提供穩定的每月現金收入和令人矚目的長期回報的公司。

When I first joined here on 2008, Dynex's market capitalization was less than $100 million. This quarter, our total equity eclipsed $1 billion for the first time in our 36-year history. I'm extremely proud and excited about the progress we have made at Dynex Capital so far in 2024.

當我 2008 年第一次加入這裡時，Dynex 的市值還不到 1 億美元。本季度，我們的總股本在 36 年歷史上首次超過 10 億美元。我對 Dynex Capital 2024 年迄今所取得的進展感到非常自豪和興奮。

As a student of economic history and a market practitioner, I've managed investment portfolios through many cycles. This has already been an incredible decade with multiple extreme cycles. Our team here at Dynex has been prepared. Events that surprised many in the market were not surprises for this team. We were prepared and always understood that surprises were highly probable.

作為一名經濟史學生和市場從業者，我管理過多個週期的投資組合。這已經是令人難以置信的十年，有多個極端週期。我們 Dynex 的團隊已做好準備。令市場上許多人感到驚訝的事件對這個團隊來說並不令人意外。我們做好了準備，並且始終明白意外發生的可能性很高。

We have a nimble mindset, and we are sitting with a capital base that is extremely strong. As we start the second half of 2024, we are well positioned to capitalize on the next cycle in the mortgage market.

我們思維敏捷，資本基礎極為雄厚。2024 年下半年伊始，我們已做好充分準備，充分利用房貸市場的下一個週期。

Human capital remained a major focus for us. Today, we announced that we hired Harman Sahni as our new Chief Technology Officer. Harman brings a deep history in financial technology, including experience at other mortgage REITs and major financial institutions. His expertise will ensure we can continue to compete on tech-driven analytics.

人力資本仍然是我們的主要關注點。今天，我們宣布聘請 Harman Sahni 擔任新任技術長。哈曼帶來了深厚的金融科技歷史，包括在其他抵押房地產投資信託基金和主要金融機構的經驗。他的專業知識將確保我們能夠繼續在技術驅動的分析方面競爭。

We also announced several executive leadership and management changes. In most cases, these actions align titles and roles with the work these exceptional people are already doing.

我們也宣布了幾項行政領導和管理層變動。在大多數情況下，這些行動使頭銜和角色與這些傑出人才已經從事的工作保持一致。

Jeff Childress, our controller for nearly 20 years has been named Chief Accounting Officer. Rebecca Imhof, our current Assistant Controller, has been named our new Controller. Bob Nilson, a 30-plus year veteran of Dynex, has been named Chief Risk Officer. Our CFO, Rob Colligan, was named Chief Operating Officer in addition to his current title. And finally, my long-term colleague and teammate, Smriti Popenoe, was named Co-Chief Executive Officer with me.

擔任我們近 20 年財務總監的 Jeff Childress 被任命為首席會計官。我們現任的助理財務總監 Rebecca Imhof 已被任命為我們的新財務總監。Bob Nilson 在 Dynex 工作了 30 多年，並被任命為首席風險長。我們的財務長 Rob Colligan 在目前的職位上又被任命為營運長。最後，我的長期同事兼隊友 Smriti Popenoe 被任命為與我一起擔任聯合執行長。

Smriti and I have managed mortgage assets together as a team for 27 years. We've successfully created our first mortgage REIT 20 years ago and executed an IPO on the New York Stock Exchange. We are the longest tenured team that has successfully managed the mortgage REIT together over this time period.

Smriti 和我作為一個團隊一起管理抵押資產已有 27 年了。20 年前，我們成功創建了第一個抵押房地產投資信託基金，並在紐約證券交易所進行了首次公開募股。我們是在此期間成功管理抵押房地產投資信託基金的任期最長的團隊。

Today's action formalizes our importance at Dynex and cements our legacy as a leader in the mortgage market. Her skills and accomplishments over her career are significant as anyone I've ever met in the markets. Smriti grew and developed in this industry, one that is male-dominated and highly competitive. She has achieved great success despite obstacles.

今天的行動正式體現了我們在 Dynex 的重要性，並鞏固了我們作為抵押貸款市場領導者的傳統。她在職業生涯中的技能和成就比我在市場上遇到的任何人都重要。Smriti 在這個男性主導且競爭激烈的行業中成長和發展。儘管困難重重，她還是取得了巨大的成功。

Growing up, Smriti was educated on three continents, which taught the valuable lessons of adaptability and resilience. The kind of tenacity, resolve, willingness to learn and leadership that she has demonstrated are beyond comparison. The global perspective that she has brought to our investment and management process has been invaluable.

在成長過程中，斯姆里蒂在三大洲接受教育，他學到了適應能力和韌性的寶貴經驗。她所表現出的堅韌、決心、學習意願和領導能力是無與倫比的。她為我們的投資和管理流程帶來的全球視野是無價的。

Smriti, the team and I are focused on managing our company with a long-term strategic vision, and we are methodically putting that vision in place. Dynex is the oldest publicly traded mortgage REIT, and we're building the company to endure well into the future.

Smriti、我的團隊和我專注於以長期策略願景來管理我們的公司，我們正在有條不紊地將這一願景落實到位。Dynex 是歷史最悠久的公開交易抵押貸款房地產投資信託基金，我們正在打造一家能夠長期持續發展的公司。

I will now turn it over to Rob Colligan, our CFO and Chief Operating Officer, to review the financials.

我現在將把它交給我們的財務長兼營運長 Rob Colligan 來審查財務狀況。

Thank you, Byron, and good morning to everyone joining the call. I'm truly honored to be named Chief Operating Officer adding to my Chief Financial Officer title. Earning the trust and confidence of the management team and Board of Directors is something I take very seriously. I really enjoy coming to work every day and making positive changes for the benefit of Dynex shareholders and our employees.

謝謝你，拜倫，祝所有加入電話會議的人早安。我非常榮幸能夠在財務長頭銜的基礎上被任命為營運長。贏得管理團隊和董事會的信任和信心是我非常重視的事情。我真的很喜歡每天上班並為 Dynex 股東和員工的利益做出積極的改變。

I'll now turn to the financial results. Book value ended the quarter at $12.50 per share and the economic return was a negative 2.4% for the quarter. The 10-year treasury was up approximately 20 basis points from the end of the first quarter and spreads were broadly wider.

我現在談談財務業績。本季末帳面價值為每股 12.50 美元，本季經濟報酬率為負 2.4%。10 年期公債較第一季末上漲約 20 個基點，利差普遍擴大。

This quarter, we raised $125 million of new capital, some of which was invested in June when spreads were wider and some which is a reserve to deploy in the second half of 2024. We issued 10.5 million shares at $11.88 per share, which was a great execution during a local high in the stock. Smriti will cover the capital raise and deployment further during her comments.

本季度，我們籌集了 1.25 億美元的新資本，其中一些是在利差較大的 6 月份投資的，另一些是準備在 2024 年下半年部署的。我們以每股 11.88 美元的價格發行了 1050 萬股，這在股價處於局部高位期間是一個很好的執行。Smriti 將在評論中進一步討論資金籌集和部署情況。

Net interest income was positive this quarter as a result of higher-than-expected paydowns on older lower-yielding assets and the addition of newer higher yielding assets. We expect this trend to continue, and if financing costs improve later this year, net interest income would trend up on an accelerated basis.

由於舊的低收益資產的償還額高於預期以及新的高收益資產的增加，本季淨利息收入為正。我們預計這一趨勢將持續下去，如果今年稍後融資成本改善，淨利息收入將呈現加速上升趨勢。

Expenses for the second quarter were down. In the first quarter, we discussed higher equity-based compensation. These expenses did not recur in the second quarter, and we expect will only occur annually in the first quarter going forward.

第二季的費用有所下降。在第一季度，我們討論了更高的股權薪酬。這些費用在第二季不會再次發生，我們預計今後只會在第一季每年發生。

This quarter, treasury features remained our preferred hedge instrument. Hedge gains and losses are a component of REIT taxable income and will be part of our distribution requirements with other ordinary gains and losses. This quarter, we realized hedge gains which added to our aggregate gains, and we have a large cumulative benefit for the portfolio.

本季，國債特徵仍然是我們首選的對沖工具。對沖收益和損失是房地產投資信託基金應稅收入的一部分，並將與其他普通收益和損失一起成為我們分配要求的一部分。本季度，我們實現了對沖收益，這增加了我們的總收益，並且我們的投資組合獲得了巨大的累積收益。

In an inverted yield curve like we have now, we expect our hedges to have a positive carry and will be supportive of earnings. Please see page 6 in the earnings release covering the hedging portfolio and page 11 of the earnings presentation for more detail on this topic.

在像現在這樣的殖利率曲線倒掛中，我們預計我們的對沖將產生正利差，並將支持獲利。請參閱收益報告第 6 頁（涵蓋對沖投資組合）和收益演示第 11 頁，以了解有關此主題的更多詳細資訊。

I'll now turn the call over to Smriti.

我現在將把電話轉給 Smriti。

Thank you and good morning, everyone. I'd like to congratulate my colleague and teammate, Rob Colligan, on his promotion to Chief Operating Officer. He brings energy, expertise, enthusiasm, a strong work ethic, and a collaborative approach to work every day. And these traits have clearly contributed to his success, and it is a pleasure to work alongside him.

謝謝大家，早安。我要祝賀我的同事兼隊友 Rob Colligan 晉升為營運長。他每天都充滿活力、專業知識、熱情、強烈的職業道德和協作方式。這些特質顯然對他的成功做出了貢獻，很高興能與他一起工作。

We also promoted Bob Nilson, one of Dynex's longest tenured employees, to Chief Risk Officer. Bob has worked tirelessly to build Dynex's sterling reputation with credit counterparties and I look forward to his continued success at the company.

我們也將 Dynex 任職時間最長的員工之一 Bob Nilson 提升為首席風險長。鮑伯不知疲倦地努力在信用交易對手中建立了 Dynex 的良好聲譽，我期待他在公司繼續取得成功。

I'm also delighted to accept the position of Co-CEO to work alongside my long-time teammate Byron. We have navigated through many storms together, we share a common vision for the company, sustained commitment to integrity and core values, while each bringing a different perspective and skill set that would be a powerful combination as we lead Dynex into the future.

我也很高興接受聯合執行長的職位，與我的長期隊友拜倫一起工作。我們一起度過了許多風暴，我們對公司有著共同的願景，對誠信和核心價值的持續承諾，同時每個人都帶來了不同的觀點和技能，這將成為我們帶領 Dynex 走向未來的強大組合。

The investment environment continues to be very favorable for Dynex. Agency MBS spreads remain in an elevated range relative to history, offering double-digit nominal ROE. Volatility continued its downward trend as Fed policies becoming slightly more certain and data are now tracking towards a possible Fed ease in the third quarter.

投資環境仍然對 Dynex 非常有利。機構MBS利差相對於歷史水準仍處於較高範圍，名目淨資產收益率達到兩位數。隨著聯準會政策變得更加確定，目前數據顯示聯準會可能在第三季放鬆貨幣政策，波動性持續呈下降趨勢。

Our view remains that the best forward returns will come from Agency MBS, which are historically cheap on an absolute and relative basis to other fixed income alternatives. Dynex's portfolio will also perform extremely well in curve steepening environment. You can see that on our risk profile on page 23 in the deck.

我們的觀點仍然是，最好的遠期回報將來自機構MBS，從歷史上看，無論從絕對值還是相對值來看，該債券都比其他固定收益替代品便宜。Dynex 的投資組合在曲線陡峭的環境中也將表現得非常出色。您可以在我們的風險簡介（第 23 頁）中看到這一點。

Looking ahead to the second half of 2024, we believe the combination of known-unknowns and unknown-unknowns makes the overall macroeconomic environment vulnerable to exogenous shocks. These will result in bouts of volatility. Using these dislocations to add assets prudently remains our core tactical game plan.

展望2024年下半年，我們認為，已知的未知和未知的未知相結合，使得整體宏觀經濟環境容易受到外生衝擊。這些將導致一陣陣的波動。謹慎地利用這些錯位來增加資產仍然是我們的核心戰術計劃。

This view led us to raise capital in June. It was a landmark raise in many respects. This was the largest capital raise in our 30-plus years history as a public company. Dynex open the market for block size capital which had been closed since early 2022.

這一觀點促使我們在六月籌集了資金。從很多方面來看，這都是一場里程碑式的加薪。這是我們作為上市公司 30 多年歷史上最大的一次融資。Dynex 開放了自 2022 年初以來一直關閉的大宗資本市場。

We received outstanding execution while effectively resetting the economics for such transactions, a testament to the strong reputation for ethical stewardship and solid relationships that we have cultivated. Through and after the raise, Agency MBS widened, giving us a chance to deploy about two-thirds of the rates, and we've kept the remaining as dry powder.

我們獲得了出色的執行力，同時有效地重置了此類交易的經濟狀況，這證明了我們在道德管理方面的良好聲譽和我們所培養的牢固關係。在升息期間和之後，機構MBS擴大了，使我們有機會部署大約三分之二的利率，而我們將剩餘的利率保留為乾粉。

We continue to maintain a high degree of liquidity in the form of cash and unencumbered assets. And we believe that between now and year-end, we will have chances to deploy that capital at attractive long-term returns.

我們繼續以現金和未支配資產的形式保持高度的流動性。我們相信，從現在到年底，我們將有機會以有吸引力的長期回報來部署這些資本。

We have a strong conviction that the equilibrium Agency RMBS, OAS, and nominal spread range will be tighter than today's levels. A scenario where MBS are 20 OAS or 40 bps nominal spread tighter is highly possible over the coming three to six quarters.

我們堅信均衡機構 RMBS、OAS 和名目利差範圍將比今天的水平更窄。未來三到六個季度，MBS 極有可能出現 20 OAS 或 40 個基點名目利差收緊的情況。

This would be driven by falling front end rates, lower delivered and implied volatility, the return of banks, and the potential underperformance of credit products in a recessionary environment, driving a flight to quality bid for Agency MBS. We also believe rewritten capital rules for banks may be a tailwind for demand.

這將受到前端利率下降、交付波動率和隱含波動率降低、銀行回報以及經濟衰退環境下信貸產品潛在表現不佳的推動，從而推動對機構MBS的優質競標。我們也認為，重新制定的銀行資本規則可能會推動需求。

We are well positioned to capitalize on opportunities that will arise into year-end. We also strongly believe in the potential for our company to command a premium valuation. Our stock continues to trade at a discount relative to forward returns. As we continue to grow, we expect our stock will be added to more market indices, attracting passive investments and providing support for stronger total shareholder returns.

我們處於有利位置，可以利用年底出現的機會。我們也堅信我們公司有獲得溢價估值的潛力。相對於遠期回報，我們的股票繼續以折扣價交易。隨著我們的不斷發展，我們預計我們的股票將被納入更多市場指數，吸引被動投資並為更強的股東總回報提供支持。

Finally, we believe our sterling reputation, expertise in managing this business model, transparent financials, and easy to value balance sheet are not reflected in the share price and can further drive a premium to book value in the future. I am deeply grateful for the confidence our investors have in us and the team, and I continue to work diligently to deliver value to you.

最後，我們相信我們良好的聲譽、管理該業務模式的專業知識、透明的財務狀況以及易於評估的資產負債表並未反映在股價中，並且可能在未來進一步推動賬面價值的溢價。我非常感謝投資者對我們和團隊的信任，我將繼續努力工作，為您創造價值。

We would now like to open the line for questions.

我們現在想開通提問熱線。

(Operator Instructions) Jason Weaver, JonesTrading.

（操作員指令）Jason Weaver，JonesTrading。

Hi, good morning. First of all, congratulations to Smriti and Rob and all the others that have new positions or just joined. First, I was hoping you could share a bit more about the timeline to invest the new capital that you raised, coupon projected ROE, if you can detail anything around there?

嗨，早安。首先，恭喜 Smriti 和 Rob 以及所有其他新職位或剛加入的人。首先，我希望您能分享更多有關投資您籌集的新資本的時間表、票息預測股本回報率的信息，如果您能詳細說明相關信息嗎？

Yeah. Hi, Jason. Good morning and thank you for the question. So basically, we have thought in terms of the second half of this year as being an environment that would be appropriate to deploy that capital. ROEs right now on a static basis are between 11% and call it 19% on the higher coupons. Those are good ROEs.

是的。嗨，傑森。早安，謝謝你的提問。因此，基本上，我們認為今年下半年是適合部署該資本的環境。目前靜態 ROE 介於 11% 之間，如果票息較高，則為 19%。這些都是很好的 ROE。

We believe mortgages are in the middle of the range on a nominal spread basis. So they've been trading as tight as like [1.35] versus the seven year and as wide as [1.55] versus the seven year. We're sitting right in between right now in terms of that range.

我們認為，以名目利差計算，抵押貸款處於該範圍的中間。因此，他們的交易範圍相對於七年期為 [1.35]，而相對於七年期為 [1.55]。就這個範圍而言，我們現在正處於兩者之間。

So still attractive returns, but one of the things that we're very focused on is just coming known-unknowns and unknown-unknowns, as I mentioned in the prepared remarks. And that we believe will actually possibly allow us to add assets at even wider spreads. And that's kind of why we're being patient about the capital deployment.

因此，回報仍然很有吸引力，但我們非常關注的事情之一就是即將到來的已知未知和未知未知，正如我在準備好的評論中提到的那樣。我們相信，這實際上可能會讓我們以更廣泛的利差增加資產。這就是為什麼我們對資本部署保持耐心的原因。

Understood. And maybe to drill down on that a little bit, when you think about the potential for interest rate volatility going forward, what sort of risks are biggest on your radar right now, whether that's the election, whether that's upcoming Fed policy? Anything else out there that stands up?

明白了。也許要深入一點，當你考慮未來利率波動的可能性時，你現在關注的最大風險是什麼，是否是選舉，是否是即將推出的聯準會政策？還有其他站得住腳的嗎？

I think what's interesting is that we are in an environment of lower vol. So vols are actually trending down and that's been very positive for mortgages and will continue to be positive for mortgages. So I think that is something versus last year that we feel is a big tailwind for the position.

我認為有趣的是我們處於一個較低的環境。因此，波動率實際上呈下降趨勢，這對抵押貸款非常有利，並將繼續對抵押貸款有利。因此，我認為與去年相比，我們認為對該職位來說是一個巨大的推動力。

What we're thinking about are exogenous shocks, right. things that you can't predict, stuff that you don't know that's going to come from something not visible. That's what we call unknown-unknowns. That is one issue, right?

我們正在考慮的是外源性衝擊，對吧。你無法預測的事情，你不知道的事情將來自於看不見的事情。這就是我們所說的未知。這是一個問題，對吧？

The second issue is there is a policy risk, right? So whenever you think about elections, not just in the US, but globally, there are shifts in policy that can come with that. And one of the big things we're focused on is fiscal policy and how that evolves.

第二個問題是政策風險是吧？因此，每當你想到選舉時，不僅是在美國，而且在全球範圍內，政策都會隨之改變。我們關注的大事之一是財政政策及其演變。

So that policy risk is it's binary and it's difficult to hedge. And when it does come, you will have these bouts of volatility. And that's the context in which we're thinking about that risk. But overall, the volumes are coming down, and that is very supportive for mortgages.

所以政策風險是二元的，很難避險。當它真的到來時，你將會經歷一連串的波動。這就是我們考慮這種風險的背景。但總體而言，交易量正在下降，這對抵押貸款非常有利。

All right. That's very helpful. Thank you and congrats once again.

好的。這非常有幫助。再次感謝並恭喜。

Thanks, Jason.

謝謝，傑森。

Eric Hagen, BTIG.

艾瑞克‧哈根，BTIG。

Hey, thanks. Good morning, guys. Hope all is well. A couple of follow-ups here. Did you say what your current book value was? If you could just give an update there. And then if the narrative stays focused on the Fed cutting interest rates, I think you mentioned that you see the range for volatility and spreads just being tighter. I mean, how does that factor into the amount of leverage you're applying to the portfolio and where you guys feel comfortable? Thank you, guys.

嘿，謝謝。早安，夥計們。希望一切都好。這裡有一些後續行動。你有說你現在的帳面價值是多少嗎？如果你能在那裡提供更新的話。然後，如果敘述仍然集中在聯準會降息上，我想你提到過，你認為波動性和利差的範圍正在收窄。我的意思是，這如何影響您應用於投資組合的槓桿數量以及您感到舒適的程度？謝謝你們，夥計們。

Hi, Eric. Good morning and thank you. Yes, so book value versus quarter end as of Friday is up about 2%. In terms of leverage here, I would really go back to what we're thinking of in terms of the risk environment. Yes. So we're going to use any spread widening to add to the asset balance.

嗨，艾瑞克。早安，謝謝。是的，截至週五，帳面價值較季末上漲了約 2%。就槓桿而言，我真的會回到我們對風險環境的思考。是的。因此，我們將利用利差擴大來增加資產餘額。

Over time, this is an environment where, again, you would expect us to hold a higher asset position versus when spreads are a lot tighter. So over time, I think as the risk environment starts to evolve, our balance -- our asset balances should go up. And right now, the position just reflects our view that the second half of the year will have chances to put money to work.

隨著時間的推移，在這種環境下，您會再次期望我們持有更高的資產頭寸，而利差要小得多。因此，隨著時間的推移，我認為隨著風險環境開始演變，我們的資產餘額應該會上升。目前，這個職位只是反映了我們的觀點，即下半年將有機會讓資金發揮作用。

Yeah, that's great. That's really helpful. As you guys get bigger in the current coupon, I mean, how do you think about the spread sensitivity to lower interest rates? I mean, just -- especially given the aggressive marketing tactics that we expect to see from the originators looking to refi those borrowers?

是的，那太好了。這真的很有幫助。我的意思是，當你們目前的票面利率越來越大時，你們如何看待利差對較低利率的敏感度？我的意思是，尤其是考慮到我們期望看到那些尋求再融資這些借款人的發起人採取積極的營銷策略？

Yeah. Look, that's one of the things that you -- the portfolio has to be constructed for both up rates and down rates in here. We buy back options in the lower coupon positions that we own, right? So yes, there's greater spread to be had in the higher coupons, but there's two ways you mitigate that. One is using specified pools that gives you some convexity protection.

是的。聽著，這是你必須為這裡的加息和降息構建投資組合的事情之一。我們回購我們擁有的較低票面利率的選擇權，對吧？所以，是的，更高的優惠券可以提供更大的利差，但是有兩種方法可以緩解這種情況。一種是使用指定的池來為您提供一些凸性保護。

The second is just having this diversified coupon position, and that's where those options get bought back. So we are very cognizant that even without much of a rate decline in the mortgage market, you can see faster prepays. We've seen that in the higher coupons that we do own.

第二個就是擁有這種多樣化的票面頭寸，這就是這些選擇權被回購的地方。因此，我們非常清楚，即使抵押貸款市場的利率沒有大幅下降，您也可以看到更快的預付款。我們已經在我們擁有的更高優惠券中看到了這一點。

So that is a very clear and present thought process in terms of how we're managing the book, and you'll see we have been active in specified pools. We like the idea of low pay-up specs in those areas as a way to protect against some of that refi risk.

因此，就我們如何管理這本書而言，這是一個非常清晰且當前的思考過程，您會看到我們一直活躍在指定的池中。我們喜歡在這些領域採用低付款規格的想法，以此作為防範部分再融資風險的一種方式。

Yeah. That's really helpful. Thank you, guys, so much.

是的。這真的很有幫助。非常感謝你們，夥伴們。

Thanks, Eric.

謝謝，埃里克。

Frank Labetti, KBW.

弗蘭克·拉貝蒂，KBW。

Hey, guys, this is Bose. Congratulations, Smriti and Rob, and the rest of the team. Actually a couple of questions. First, your expenses fell quarter over quarter by about $4 million. Can you remind us, was the first quarter a bit elevated, and what's a good run rate for that number? And also any of the personnel changes going to impact that number going forward?

嘿，夥計們，這是 Bose。恭喜 Smriti 和 Rob，以及團隊的其他成員。實際上有幾個問題。首先，您的開支環比下降了約 400 萬美元。您能否提醒我們，第一季是否有所上升？還有任何人事變動會影響未來的數字嗎？

Sure, Bose. This is Rob. Thanks for the question. Yeah, we had some accelerated vesting on equity comp by about $4 million in the first quarter. So if you just spread that out through the year, there was $1 million a quarter instead of a bump in Q1. That's a good run rate.

當然，博斯。這是羅布。謝謝你的提問。是的，我們在第一季加速了約 400 萬美元的股權兌現。因此，如果您將其分攤到全年，每個季度都會有 100 萬美元，而不是第一季出現成長。這是一個很好的運行率。

We may have that bump going forward, where Q1 is a little heavier than the rest of the year. But if you just move that out over the four quarters, I think that would be a good way to model it out.

未來我們可能會遇到這樣的情況，第一季的情況比今年剩餘時間還要重。但如果你把它移到四個季度，我認為這將是一個很好的建模方法。

Okay. And then apart from that, this quarter's run rate is reasonable?

好的。除此之外，本季的運行率是否合理？

Yeah. Just for the second part of your question, the personnel changes won't materially change the run rate.

是的。僅就您問題的第二部分而言，人員變動不會實質改變運行率。

Okay, great. Thanks. And then, Rob, you made the comment about net interest income and how it could increase, I guess, on an accelerated basis if the Fed cuts. Does that comment refer to the EAD? Or does that impact the economic return as well as the Fed cuts?

好的，太好了。謝謝。然後，羅布，您對淨利息收入以及我猜如果聯準會降息，淨利息收入將如何加速成長發表了評論。該評論是否涉及 EAD？或者這會影響經濟回報以及聯準會的降息嗎？

Yeah, it's really both. Yeah, if the Fed cuts or repo rates go down, EAD goes up. And total economic return go up. So it's like a triple win if that happens. We're not banking on that. Obviously, we can manage through even if those rates don't come immediately or come later than people expect, but if they do come sooner, we'll gladly take a lower repo expenses.

是的，確實是兩者兼具。是的，如果聯準會降息或回購利率下降，EAD 就會上升。總經濟報酬率上升。因此，如果發生這種情況，這就像是三重勝利。我們不指望這一點。顯然，即使這些利率不會立即到來或晚於人們的預期，我們也能渡過難關，但如果它們來得更早，我們將很樂意接受較低的回購費用。

Okay, great. Thanks.

好的，太好了。謝謝。

Will Nance, Credit Suisse.

威爾·南斯，瑞士信貸。

This is actually Doug Harter from UBS. Just hoping you could talk a little bit more about the decision to issue equity -- large amount of equity kind of below book value, how you see the payback period and the trade-off versus increasing the position through leverage?

這其實是瑞銀 (UBS) 的 Doug Harter。只是希望您能多談談發行股票的決定——大量股票低於賬面價值，您如何看待投資回收期以及與通過槓桿增加頭寸的權衡？

Thanks, Doug. Yeah. So where this started off was with a tremendous amount of demand for Dynex stock. Okay? I talked about our reputation during the prepared remarks. People notice when your performance is good, we have been the best-performing mortgage REIT since 2019 or thereabouts.

謝謝，道格。是的。因此，這一切始於對 Dynex 股票的巨大需求。好的？我在準備好的發言中談到了我們的聲譽。人們會注意到，當您的表現良好時，我們自 2019 年左右以來一直是表現最好的抵押貸款房地產投資信託基金。

That is resonating with investors. People are looking for management teams that can provide value through an investing cycle here that's really attractive in agency mortgages. So it starts off with that demand for Dynex stock. So there was a very strong amount of reverse inquiry for Dynex. That's the thing number one. Thing number two, the stock was trading at a local high. That was a -- that factored into our decision.

這引起了投資者的共鳴。人們正在尋找能夠透過投資週期提供價值的管理團隊，這在機構抵押貸款中非常有吸引力。因此，一切始於對 Dynex 股票的需求。因此，對 Dynex 的反向詢問量非常大。這是第一件事。第二件事，該股的交易價格處於當地高點。這是我們決定的一個因素。

And the other piece is, look, last quarter, I gave a very detailed rationale for us issuing equity -- when do we issue equity, why we issue equity. I talked about the fact that when we do it, we're considering the environment that we're investing in. And in this environment, the cost to issue which gets subtracted upfront, is actually much easier for us to make back when spreads are as wide as they are.

另一件事情是，看，上個季度，我對我們發行股票給了非常詳細的理由——我們什麼時候發行股票，為什麼要發行股票。我談到了這樣一個事實：當我們這樣做時，我們正在考慮我們所投資的環境。在這種環境下，當利差如此之大時，我們實際上更容易收回預先扣除的發行成本。

And so when that payback period ends up being shorter than any other time in history, it makes sense for us to issue. The other piece that was really important this time was that the pricing was very aggressive and advantageous for our shareholders. So those are some of the factors that played into our decision.

因此，當投資回收期最終比歷史上任何其他時期都要短時，我們發行債券就有意義了。這次真正重要的另一件事是定價非常激進並且對我們的股東有利。這些是影響我們決定的一些因素。

And the last piece of it is just looking into the second half of this year, we really believe that there will be chances for us to deploy this capital. There are already known-unknowns, which we witnessed in the last three weeks in the US political situation, global political situation. These are all factors that we think will help us at the end of the day put the capital to work at really good levels.

最後一部分只是展望今年下半年，我們真的相信我們將有機會部署這筆資金。過去三週我們在美國政治局勢和全球政治局勢中目睹了已知和未知的情況。我們認為這些因素最終將幫助我們讓資本以真正良好的水平發揮作用。

And Smriti, just a follow up, when you're talking about the local high of the stock, is that a local high in terms of how you view price-to-book valuation or is that kind of on an absolute just stock level?

Smriti，只是一個後續問題，當您談論股票的局部高點時，就您如何看待市淨率估值而言，這是局部高點還是絕對公正的股票水平？

All of the above. And I think that is -- those are all factors that go into it. Yes.

上述所有的。我認為這些都是影響因素。是的。

All right. I appreciate the insights, Smriti. Thank you.

好的。我很欣賞這些見解，Smriti。謝謝。

Absolutely. Thanks, Doug.

絕對地。謝謝，道格。

Jason Stewart, JonesTrading.

賈森·斯圖爾特，瓊斯交易公司。

Hi. Jason Stewart, Janney. Byron, thanks for the introduction to the new teams and congrats on the promotion. How should we think about, Byron, your role going forward given these moves?

你好。傑森史都華、珍妮.拜倫，感謝您對新團隊的介紹，並祝賀您晉升。拜倫，考慮到這些舉動，我們該如何考慮你未來的角色？

That's a great question. I've been here -- I'm in my 17th year at Dynex Capital. I am so proud to be here and work with this team. Thank you for this question. This is phenomenal. I absolutely love being at Dynex Capital, and I love the team that I work with.

這是一個很好的問題。我已經來到這裡了——這是我在 Dynex Capital 工作的第 17 年。我很自豪能夠來到這裡並與這個團隊一起工作。謝謝你提出這個問題。這是驚人的。我非常喜歡在 Dynex Capital 工作，也喜歡與我一起工作的團隊。

We have an extremely experienced team. I have accumulated an enormous amount of experience over time. It's not about just picking the right human beings for the seat. It's also about developing the right human being for the seat. It's about developing the right people, the right process, and the right technology.

我們擁有一支經驗豐富的團隊。隨著時間的推移，我累積了大量的經驗。這不僅僅是挑選合適的人選。它還涉及培養合適的人才。它涉及培養合適的人才、合適的流程和合適的技術。

So I am here at Dynex Capital, looking to the future, looking to build our company for the future. We have more resilience in this structure. We have better opportunity for consistency over time, development of our personnel. And to be frank and honest with you, if you look at what the move that we've made over the last couple of years, we've outperformed everyone else in terms of human capital decisions.

因此，我來了 Dynex Capital，展望未來，為未來打造我們的公司。我們在這種結構中具有更強的彈性。隨著時間的推移，我們有更好的機會保持一致性和員工發展。坦白說，如果你看看我們在過去幾年中採取的舉措，你會發現我們在人力資本決策方面的表現優於其他所有人。

So I'm pretty excited here at Dynex Capital, excited to be with the team that I have here. And I couldn't have been blessed any more than to show up here in January 2008, find a great group of people -- similar culture, similar values. And methodically, piece by piece in a very disciplined manner, we've been building this company over time.

所以我在 Dynex Capital 感到非常興奮，很高興能和我這裡的團隊在一起。2008 年 1 月我來到這裡，找到了一群很棒的人——相似的文化、相似的價值觀，真是太幸運了。隨著時間的推移，我們一直在有條不紊地、以一種非常有紀律的方式一點一滴地建立這家公司。

And I appreciate that all those shareholders who are listening, who've been with us through this journey, and we'll keep looking for the future in terms of generating a solid cash income for you on a monthly basis.

我感謝所有正在傾聽的股東，他們一直與我們一起度過這段旅程，我們將繼續尋找未來，每月為您創造穩定的現金收入。

Great. Thanks, Byron. And we look forward to hearing from you on these calls. I had a question for the portfolio team. When we think about the up in coupon trades, how much of that is carry-based versus shorter duration total return? And when does that dynamic shift to -- down in coupon? I mean, what are you looking at in terms of markers to say that team has played out and it's time to move down a coupon?

偉大的。謝謝，拜倫。我們期待在這些電話中收到您的來信。我有一個問題要問投資組合團隊。當我們考慮息票交易的成長時，其中有多少是基於套利的，而不是較短期限的總回報？這種動態何時會轉變為－優惠券下降？我的意思是，你從標記角度看什麼來表明球隊已經打完了並且是時候降低優惠券了？

Hey, Jason. I would say -- can I just add one thing to Byron's comments? We are a team. We've been a team for a long time, and today's announcement just says we're going to keep being that team. And so, that's an important piece of this.

嘿，傑森。我想說——我可以在拜倫的評論中添加一件事嗎？我們是一個團隊。我們長期以來一直是一個團隊，今天的公告只是表明我們將繼續保持這個團隊的狀態。所以，這是其中很重要的一環。

I think to your other question about the coupon positioning, one of the really nice things about being in this environment and having the returns that you can get in the higher coupons is that overall, the volatility trend is declining. So that just means that the expense that you have to pay to hedge these coupons is lower. And you can actually have a chance of earning some of that return, the nominal return, right, the nominal spread, and the option cost isn't as high.

我認為，對於你關於優惠券定位的另一個問題，在這種環境中並獲得較高優惠券可以獲得的回報的真正好處之一是，總體而言，波動性趨勢正在下降。因此，這僅意味著您為對沖這些優惠券而必須支付的費用較低。你實際上有機會獲得一些回報，名義回報，對，名義利差，而且期權成本並不那麼高。

So when we start to see the option cost actually starting to increase, that usually happens in down rate scenarios where vol is increasing, I think that's when -- and well in advance of that, really, you want to be able to adjust your position down in coupon. That is not yet the environment that we're in, we believe. But that would be one of the factors that we would consider in taking sort of a more aggressive position down in coupon.

因此，當我們開始看到選擇權成本實際上開始增加時，這通常發生在成交量增加的降價情況下，我認為那就是——而且在此之前，你真的希望能夠調整你的頭寸優惠券下降。我們相信，這還不是我們所處的環境。但這將是我們在採取更激進的票息下調立場時考慮的因素之一。

And just to remind you guys, our book is actually fairly diversified. It's like 40% below [4s], right, and 60% above [4.5] and above. So it's relatively balanced in that way. So we're trying not to take too much of that risk just because we're very respectful of -- someone else asked the question earlier on the call, just about that down rate refinancing risk on some of the higher coupons.

只是提醒大家，我們的書其實相當多元。相當於低於 [4s] 的 40%，對，高於 [4.5] 及以上的 60%。所以從這個角度來講是比較平衡的。因此，我們試圖不承擔太大的風險，只是因為我們非常尊重其他人在電話會議早些時候提出的問題，只是關於一些較高息票的降息再融資風險。

Yeah. Got it. Okay. And just one clarification for Rob. I think you said that, I mean, we obviously noticed NII inflect, but you think that holds absent of Fed rate cut, correct? And the Fed rate cut would just amplify that?

是的。知道了。好的。只需向 Rob 澄清一件事。我想你說過，我的意思是，我們顯然注意到 NII 的變化，但你認為這在美聯儲降息的情況下成立，對嗎？聯準會降息只會放大這種情況嗎？

That's correct. Yeah, the other point there is the lower yielding assets that we've had are paying off and actually paying off faster than we've expected. And we're adding higher yield as we go. So that should continue to trend in that direction.

這是正確的。是的，另一點是我們擁有的收益率較低的資產正在得到回報，而且實際上回報速度比我們預期的要快。我們正在不斷增加產量。因此，這種趨勢應該會繼續朝這個方向發展。

Great. Thanks for the question.

偉大的。謝謝你的提問。

Thanks, Jason.

謝謝，傑森。

I will now turn the call back over to Mr. Byron Boston for closing remarks. Please go ahead.

現在我將把電話轉回給拜倫·波士頓先生致閉幕詞。請繼續。

Thank you very much. Please remember at Dynex Capital, we're managing for the long-term. We look forward to seeing you on our next quarterly conference call. Thank you very much. Have a wonderful day.

非常感謝。請記住，在 Dynex Capital，我們的管理是長期的。我們期待在下一次季度電話會議上見到您。非常感謝。祝你有美好的一天。

Ladies and gentlemen, that concludes today's call. Thank you all for joining and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入，現在可以斷開連線了。