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Yahoo
30-07-2025
- Business
- Yahoo
Two Harbors Investment Corp (TWO) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Total Economic Return: Negative 14.5% including loss contingency accrual; minus 1.4% excluding the accrual. Book Value: Decreased to $12.14 per share. Comprehensive Loss: $221.8 million or $2.13 per share including accrual; $21.9 million or $0.21 per share excluding accrual. Net Interest and Servicing Income: Increased by $3.1 million. Loss Contingency Accrual: $199.9 million or $1.92 per share related to litigation. First Lien Originations: Funded $48 million UPB, a 68% increase from the first quarter. Second Liens: Brokered $44 million UPB in the quarter. MSR Portfolio: Purchased $6.4 billion UPB of MSR through three bulk purchases. Economic Debt-to-Equity: Increased to 7 times. Agency RMBS Portfolio: $14.4 billion including $11.4 billion in settled positions and $3 billion in TBAs. Unused MSR Asset Financing Capacity: $837 million. Senior Notes Issuance: $115 million aggregate principal amount of 9.375% senior notes due 2030. Warning! GuruFocus has detected 4 Warning Signs with TWO. Release Date: July 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Two Harbors Investment Corp (NYSE:TWO) experienced a significant recovery in the performance of Agency RMBS spreads as the macro environment improved. The company maintained a disciplined approach to risk, keeping interest rate and spread exposures low, and utilized leverage judiciously. Two Harbors Investment Corp (NYSE:TWO) increased its first lien originations by 68% quarter-over-quarter, outpacing the national trend. The company is investing in AI technologies to increase efficiencies, reduce costs, and improve customer experiences. Two Harbors Investment Corp (NYSE:TWO) has a strong platform and experienced team, positioning it well to navigate changing market cycles and create long-term value. Negative Points The company reported a total economic return of negative 14.5% for the second quarter, including a significant loss contingency accrual. Two Harbors Investment Corp (NYSE:TWO) faced a comprehensive loss of $221.8 million in the quarter, impacted by unfavorable market movements on MSR, swaps, TBAs, and futures. The company's leverage increased to 7 times, partly due to the litigation reserve, which may affect future portfolio actions. The ongoing litigation from the termination of the management agreement with PRCM Advisers in 2020 remains unresolved, with no trial date set. The MSR market supply has declined by about 30% year-over-year, potentially limiting opportunities for bulk purchases. Q & A Highlights Q: Your leverage increased this quarter due to the litigation reserve. Is this the new level of leverage we should expect, or are there more portfolio actions to adjust it? A: Nicholas Letica, Chief Investment Officer, explained that the leverage of 7 times is within their historical range of 5% to 8%. They increased leverage due to attractive market conditions and feel comfortable with the current level. The leverage might adjust based on market opportunities and capital base. Q: Can you provide an update on economic return performance so far in July? A: William Greenberg, President and CEO, stated that quarter-to-date through last Friday, they were up about 1.5% in economic return on the new book value. Q: What are the main differences between the expected returns on slide 15 and the EAD metric? A: William Greenberg explained that EAD is based on historical purchase yields, while the return outlook reflects forward-looking mark-to-market yields at current prices. The expected returns account for potential fluctuations in prepayments, funding spreads, and leverage. Q: Could you comment on your risk appetite and any changes in rate or spread exposure? A: Nicholas Letica noted that their rate exposure is virtually unchanged quarter-over-quarter, and spread risk is also stable. They find mortgage spreads attractive and are comfortable with their current risk levels, given the low spread volatility and supportive market conditions. Q: Can you discuss your financing strategy and the shift from repo to unsecured financing this quarter? A: William Dellal, CFO, explained that the issuance of the unsecured baby bond was to prefinance the maturity of convertible notes and some warehouse lines. This change is part of their strategy to manage upcoming maturities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
Dynex Capital, Inc. Announces Second Quarter 2025 Results
GLEN ALLEN, Va., July 21, 2025--(BUSINESS WIRE)--Dynex Capital, Inc. ("Dynex" or the "Company") (NYSE: DX) reported its second quarter 2025 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." Second Quarter Financial Performance and Other Highlights Total economic loss of $(0.10) per common share, or (0.8)% of beginning book value, comprised of a decline in book value of $(0.61) per common share offset by dividends declared of $0.51 per common share Book value per common share of $11.95 as of June 30, 2025 Comprehensive loss of $(0.11) per common share and net loss of $(0.14) per common share Raised equity capital of $282 million, net of issuance costs, through at-the-market ("ATM") common stock issuances Purchased $1.9 billion in Agency RMBS and $364 million in Agency CMBS and increased TBA investments by $953 million Liquidity of $891 million as of June 30, 2025 Leverage including to-be-announced ("TBA") securities at cost was 8.3 times shareholders' equity as of June 30, 2025 Management Remarks "Our approach of strategically raising and deploying capital into compelling mortgage-backed securities markets makes Dynex well positioned to generate strong returns for shareholders. We continue to invest in highly liquid, transparent, and readily valued securities, supporting stability and effective risk management across various interest rate and economic cycles," said Smriti Laxman Popenoe, Co-Chief Executive Officer and President. Earnings Conference Call As previously announced, the Company's conference call to discuss these results is today at 10:00 a.m. Eastern Time and may be accessed via telephone by dialing 1-888-596-4144 for North America or 1-646-968-2525 for International and provide the conference ID 1957092 or by live audio webcast by clicking the "Webcast" button on the Investors page of the Company's website ( which includes a slide presentation. To listen to the live conference call via telephone, please dial in at least ten minutes before the call begins. An archive of the webcast will be available on the Company's website approximately two hours after the live call ends. Consolidated Balance Sheets (unaudited) ($s in thousands except per share data) June 30, 2025 March 31, 2025 ASSETS Cash and cash equivalents $ 387,520 $ 327,447 Cash collateral posted to counterparties 318,317 260,563 Mortgage-backed securities (including pledged of $9,066,756 and $7,620,616, respectively) 10,510,006 8,399,925 Due from counterparties 12,349 2,645 Derivative assets 31,816 6,791 Accrued interest receivable 43,309 36,686 Other assets, net 7,948 10,779 Total assets $ 11,311,265 $ 9,044,836 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Repurchase agreements $ 8,600,143 $ 7,234,723 Due to counterparties 976,506 332,676 Derivative liabilities 31 3,810 Cash collateral posted by counterparties 29,323 4,798 Accrued interest payable 60,855 46,861 Accrued dividends payable 26,125 20,707 Other liabilities 8,289 5,346 Total liabilities 9,701,272 7,648,921 Shareholders' equity: Preferred stock $ 107,843 $ 107,843 Common stock 1,253 1,022 Additional paid-in capital 2,268,143 1,982,781 Accumulated other comprehensive loss (149,035 ) (153,099 ) Accumulated deficit (618,211 ) (542,632 ) Total shareholders' equity 1,609,993 1,395,915 Total liabilities and shareholders' equity $ 11,311,265 $ 9,044,836 Preferred stock aggregate liquidation preference $ 111,500 $ 111,500 Book value per common share $ 11.95 $ 12.56 Common shares outstanding 125,358,375 102,226,355 Consolidated Comprehensive Statements of Income (Loss) (unaudited) Six MonthsEnded Three Months Ended ($s in thousands except per share data) June 30, 2025 March 31, 2025 June 30, 2025 INTEREST INCOME Interest income $ 111,746 $ 95,059 $ 206,805 Interest expense (88,618 ) (77,926 ) (166,545 ) Net interest income 23,128 17,133 40,260 OTHER GAINS (LOSSES) Unrealized gain on investments, net 33,652 109,997 143,649 Loss on derivatives, net (58,093 ) (118,088 ) (176,181 ) Total other losses, net (24,441 ) (8,091 ) (32,532 ) EXPENSES General and administrative expenses (11,913 ) (11,764 ) (23,676 ) Other operating expense, net (380 ) (354 ) (734 ) Total operating expenses (12,293 ) (12,118 ) (24,410 ) Net loss (13,606 ) (3,076 ) (16,682 ) Preferred stock dividends (2,680 ) (1,923 ) (4,603 ) Net loss to common shareholders $ (16,286 ) $ (4,999 ) $ (21,285 ) Other comprehensive income: Unrealized gain on available-for-sale investments, net 4,064 19,390 23,454 Total other comprehensive income 4,064 19,390 23,454 Comprehensive (loss) income to common shareholders $ (12,222 ) $ 14,391 $ 2,169 Weighted average common shares-basic 113,177,331 90,492,327 101,897,495 Weighted average common shares-diluted 113,177,331 90,492,327 101,897,495 Net loss per common share-basic $ (0.14 ) $ (0.06 ) $ (0.21 ) Net loss per common share-diluted $ (0.14 ) $ (0.06 ) $ (0.21 ) Dividends declared per common share $ 0.51 $ 0.47 $ 0.98 The following table summarizes the changes in the Company's financial position during the second quarter of 2025: ($s in thousands except per share data) Net Changes in Fair Value Components of Comprehensive Income Common Equity Rollforward Balance as of March 31, 2025 (1) $ 1,284,415 Net interest income $ 23,128 Net periodic interest from interest rate swaps 12,349 Operating expenses (12,293 ) Preferred stock dividends (2,680 ) Changes in fair value: MBS and loans $ 37,716 TBAs 7,608 U.S. Treasury futures 6,320 Interest rate swaps (84,552 ) Interest rate swaptions 182 Total net change in fair value (32,726 ) Comprehensive income to common shareholders (12,222 ) Capital transactions: Net proceeds from stock issuance (2) 285,593 Common dividends declared (59,293 ) Balance as of June 30, 2025 (1) $ 1,498,493 (1) Amounts represent total shareholders' equity less the aggregate liquidation preference of the Company's preferred stock of $111,500. (2) Net proceeds from common stock issuances include approximately $282.1 million from ATM issuances and approximately $3.5 million from amortization of share-based compensation, net of grants. Investment Portfolio and Financing The following table provides detail on the Company's MBS investments, including TBA securities, as of the periods indicated: June 30, 2025 March 31, 2025 ($ in thousands) Amortized Cost/Implied Cost Basis Fair Value Unrealized Gain (Loss) Amortized Cost/Implied Cost Basis Fair Value Unrealized Gain (Loss) Fixed rate Agency RMBS: 2.0% coupon $ 639,437 $ 506,027 $ (133,410 ) $ 654,189 $ 518,108 (136,081 ) 2.5% coupon 561,012 455,838 (105,174 ) 572,705 465,278 (107,427 ) 4.0% coupon 309,469 291,063 (18,406 ) 318,061 299,052 (19,009 ) 4.5% coupon 1,766,385 1,755,138 (11,247 ) 1,593,059 1,576,921 (16,138 ) 5.0% coupon 2,814,838 2,831,069 16,231 2,364,405 2,370,615 6,210 5.5% coupon 3,787,911 3,801,864 13,953 2,650,442 2,651,860 1,418 6.0% coupon 292,046 295,837 3,791 299,966 303,998 4,032 TBA 4.0% 1,178,398 1,192,572 14,174 1,194,627 1,193,191 (1,436 ) TBA 4.5%(1) 849,450 858,382 8,932 365,420 369,887 4,467 TBA 5.0% 900,205 903,920 3,715 537,463 537,505 42 TBA 5.5% 723,974 727,943 3,969 630,622 629,718 (904 ) Total Agency RMBS $ 13,823,125 $ 13,619,653 $ (203,472 ) $ 11,180,959 $ 10,916,133 $ (264,826 ) Agency CMBS $ 470,882 $ 472,426 $ 1,544 $ 109,578 $ 106,429 $ (3,149 ) Agency CMBS IO 97,049 94,253 (2,796 ) 102,898 99,267 (3,631 ) Non-Agency CMBS IO 4,621 6,493 1,872 6,013 8,397 2,384 Total $ 14,395,677 $ 14,192,825 $ (202,852 ) $ 11,399,448 $ 11,130,226 $ (269,222 ) (1) June 30, 2025 includes $689 million implied cost of 15-year TBA securities. The following table provides detail on the Company's repurchase agreement borrowings outstanding as of the dates indicated: June 30, 2025 March 31, 2025 Remaining Termto Maturity Balance WeightedAverageRate WAVGOriginalTerm to Maturity Balance WeightedAverageRate WAVGOriginalTerm to Maturity ($s in thousands) Less than 30 days $ 7,037,298 4.49 % 67 $ 3,932,031 4.47 % 67 30 to 90 days — — % — 2,997,548 4.45 % 96 91 to 180 days 1,562,845 4.37 % 184 305,144 4.40 % 152 Total $ 8,600,143 4.47 % 88 $ 7,234,723 4.46 % 83 The following table provides details on the performance of the Company's MBS, repurchase agreement financing, and interest rate swaps for the second quarter of 2025 compared to the prior quarter: Three Months Ended June 30, 2025 March 31, 2025 ($s in thousands) InterestIncome/Expense Average Balance (1)(2) EffectiveYield/FinancingCost(3)(4) InterestIncome/Expense Average Balance (1)(2) EffectiveYield/FinancingCost(3)(4) Agency RMBS $ 102,738 $ 8,663,590 4.74 % $ 90,075 $ 7,726,081 4.66 % Agency CMBS 1,945 189,815 4.05 % 735 86,880 3.38 % CMBS IO(5) 2,612 105,162 9.62 % 2,332 113,263 8.74 % Mortgage loans 12 940 4.40 % 14 999 4.96 % 107,307 8,959,507 4.79 % 93,156 7,927,223 4.71 % Cash equivalents 4,439 1,903 Total interest income $ 111,746 $ 95,059 Repurchase agreement financing (88,618 ) 7,871,627 (4.45 )% (77,926 ) 6,842,485 (4.56 )% Net interest income/net interest spread $ 23,128 0.33 % $ 17,133 0.15 % Net periodic interest from interest rate swaps 12,349 0.63 % 10,851 0.64 % Economic net interest income (6) $ 35,477 0.96 % $ 27,984 0.79 % *Table Note: Data may not foot due to rounding. (1) Average balance for assets is calculated as a simple average of the daily amortized cost and excludes securities pending settlement if applicable. (2) Average balance for liabilities is calculated as a simple average of the daily borrowings outstanding during the period. (3) Effective yield is calculated by dividing annualized interest income by the average balance of asset type outstanding during the reporting period. Unscheduled adjustments to premium/discount amortization/accretion, such as for prepayment compensation, are not annualized in this calculation. (4) Financing cost is calculated by dividing annualized interest expense by the total average balance of borrowings outstanding during the period with an assumption of 360 days in a year. (5) CMBS IO ("Interest only") includes Agency and non-Agency issued securities. (6) Represents a non-GAAP measure. Hedging Portfolio The following tables provide details on the Company's interest rate hedging portfolio as of the dates indicated: June 30, 2025 March 31, 2025 Derivative Type Notional Amount Long (Short) WAVG Fixed Pay Rate Notional Amount Long (Short) WAVG Fixed Pay Rate ($s in thousands) 30-year U.S. Treasury futures $ (953,500 ) n/a $ (766,500 ) n/a 10-year U.S. Treasury futures (1,521,500 ) n/a (795,000 ) n/a $ (2,475,000 ) $ (1,561,500 ) 4-5 year interest rate swaps $ (1,275,000 ) 3.42% $ (1,275,000 ) 3.42% 5-6 year interest rate swaps (10,000 ) 4.15% — —% 6-7 year interest rate swaps (3,750,000 ) 3.67% (3,510,000 ) 3.66% 9-10 year interest rate swaps (1,875,000 ) 3.93% (1,350,000 ) 3.92% 10-15 year interest rate swaps (250,000 ) 3.73% (200,000 ) 3.93% $ (7,160,000 ) $ (6,335,000 ) June 30, 2025 March 31, 2025 Underlying Receiver Swap Underlying Receiver Swap Notional Amount Average Fixed Receive Rate Average Term (Years) Notional Amount Average Fixed Receive Rate Average Term (Years) ($s in thousands) 1-2 year interest rate swaption $500,000 3.25% 5 year $500,000 3.25% 5 year The following table provides detail on the Company's "gain (loss) on derivatives, net" recognized in the Company's consolidated statements of comprehensive income (loss) during the periods indicated: Three Months Ended June 30, 2025 March 31, 2025 Unrealized gain (loss): TBA securities $ 28,622 $ 24,851 U. S. Treasury futures (51,950 ) (18,546 ) Interest rate swaps (84,552 ) (127,577 ) Interest rate swaptions 182 811 (107,698 ) (120,461 ) Realized gain (loss) upon settlement, maturity or termination: TBA securities (21,014 ) 17,323 U. S. Treasury futures 58,270 (25,801 ) 37,256 (8,478 ) Net periodic interest: Interest rate swaps 12,349 10,851 Loss on derivatives, net $ (58,093 ) $ (118,088 ) The table below provides the projected amortization of the Company's net deferred tax hedge gains that may be recognized as taxable income over the periods indicated, given conditions known as of June 30, 2025; however, uncertainty inherent in the forward interest rate curve makes future realized gains and losses difficult to estimate, and as such, these projections are subject to change for any given period. Projected Period of Recognition for Tax Hedge Gains, Net June 30, 2025 ($ in thousands) Fiscal year 2025 $ 100,144 Fiscal year 2026 100,421 Fiscal year 2027 95,831 Fiscal year 2028 and thereafter 422,642 $ 719,038 Non-GAAP Financial Measures In evaluating the Company's financial and operating performance, management considers book value per common share, total economic return to common shareholders, and other operating results presented in accordance with GAAP as well as certain non-GAAP financial measures, which include earnings available for distribution ("EAD") to common shareholders (including per common share) and economic net interest income (and the related metric economic net interest spread). Management believes these non-GAAP financial measures may be useful to investors because they are viewed by management as a measure of the investment portfolio's return based on the effective yield of its investments, net of financing costs and, with respect to EAD, net of other normal recurring operating income/expenses. Drop income/loss generated by TBA dollar roll positions, which is included in "gain (loss) on derivatives instruments, net" on the Company's consolidated statements of comprehensive income, is included in EAD because management views drop income/loss as the economic equivalent of net interest income on the underlying Agency security from trade date to settlement date. However, drop income/loss does not represent the total realized gain/loss from the Company's TBA securities. Management also includes net periodic interest from its interest rate swaps, which is included in "gain (loss) on derivatives instruments, net", in each of these non-GAAP measures because interest rate swaps are used by the Company to economically hedge the impact of changing interest rates on its borrowing costs from repurchase agreements, and including net periodic interest from interest rate swaps is a helpful indicator of the Company's total financing cost in addition to GAAP interest expense. Non-GAAP financial measures are not a substitute for GAAP earnings and may not be comparable to similarly titled measures of other REITs because they may not be calculated in the same manner. Furthermore, though EAD is one of several factors our management considers in determining the appropriate level of distributions to common shareholders, it should not be utilized in isolation, and it is not an accurate indication of the Company's REIT taxable income or its distribution requirements in accordance with the Tax Code. Reconciliations of each non-GAAP measure to certain GAAP financial measures are provided below. Three Months Ended ($s in thousands except per share data) June 30, 2025 March 31, 2025 Comprehensive (loss) income to common shareholders (GAAP) $ (12,222 ) $ 14,391 Less: Change in fair value of investments, net (1) (37,716 ) (129,387 ) Change in fair value of derivative instruments, net (2) 75,200 133,724 EAD to common shareholders (non-GAAP) $ 25,262 $ 18,728 Weighted average common shares 113,177,331 90,492,327 EAD per common share (non-GAAP) $ 0.22 $ 0.21 Net interest income (GAAP) $ 23,128 $ 17,133 Net periodic interest from interest rate swaps 12,349 10,851 Economic net interest income 35,477 27,984 TBA drop income (3) 4,758 4,785 Operating expenses (12,293 ) (12,118 ) Preferred stock dividends (2,680 ) (1,923 ) EAD to common shareholders (non-GAAP) $ 25,262 $ 18,728 Net interest spread (GAAP) 0.33 % 0.15 % Net periodic interest as a percentage of average repurchase borrowings 0.63 % 0.64 % Economic net interest spread (non-GAAP) 0.96 % 0.79 % (1) Amount includes realized and unrealized gains and losses from the Company's MBS. (2) Amount includes unrealized gains and losses from changes in fair value of derivatives (including TBAs accounted for as derivative instruments) and realized gains and losses on terminated derivatives and excludes TBA drop income and net periodic interest from interest rate swaps. (3) TBA drop income/loss is calculated by multiplying the notional amount of the TBA dollar roll positions by the difference in price between two TBA securities with the same terms but different settlement dates. Forward Looking Statements This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "forecast," "anticipate," "estimate," "project," "plan," "may," "could," "will," "continue" and similar expressions identify forward-looking statements that are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Forward-looking statements in this release, including statements made in Ms. Popenoe's quote, may include, without limitation, statements regarding the Company's financial performance in future periods, future interest rates, future market credit spreads, management's views on expected characteristics of future investment and macroeconomic environments, central bank strategies, prepayment rates and investment risks, future investment strategies, future leverage levels and financing strategies, the use of specific financing and hedging instruments and the future impacts of these strategies, future actions by the Federal Reserve, and the expected performance of the Company's investments. The Company's actual results and timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements as a result of unforeseen external factors. These factors may include, but are not limited to, the Company's ability to find suitable investment opportunities; changes in domestic economic conditions; geopolitical events, such as terrorism, war, or other military conflict, including the war between Russia and Ukraine and the conflict in the Middle East and the related impacts on macroeconomic conditions as a result of such conflicts; tariffs that the U.S. imposes on trading partners or tariffs imposed on the U.S. from trading partners; global government policy changes and the ability or inability to react to rapidly changing global economic policies; changes in interest rates and credit spreads, including the repricing of interest-earning assets and interest-bearing liabilities; the Company's investment portfolio performance, particularly as it relates to cash flow, prepayment rates, and credit performance; the impact on markets and asset prices from changes in the Federal Reserve's policies regarding purchases of Agency RMBS, Agency CMBS, and U.S. Treasuries; actual or anticipated changes in Federal Reserve monetary policy or the monetary policy of other central banks; adverse reactions in U.S. financial markets related to actions of foreign central banks or the economic performance of foreign economies, including in particular China, Japan, the European Union, and the United Kingdom; uncertainty concerning the long-term fiscal health and stability of the United States; the cost and availability of financing, including the future availability of financing due to changes to regulation of, and capital requirements imposed upon, financial institutions; the cost and availability of new equity capital; changes in the Company's use of leverage; changes to the Company's investment strategy, operating policies, dividend policy, or asset allocations; the quality of performance of third-party servicer providers, including the Company's sole third-party service provider for our critical operations and trade functions; the loss or unavailability of the Company's third-party service provider's service and technology that supports critical functions of the Company's business related to the Company's trading and borrowing activities due to outages, interruptions, or other failures; the level of defaults by borrowers on loans underlying MBS; changes in the Company's industry; increased competition; changes in government regulations affecting the Company's business; changes or volatility in the repurchase agreement financing markets and other credit markets; changes to the market for interest rate swaps and other derivative instruments, including changes to margin requirements on derivative instruments; uncertainty regarding continued government support of the U.S. financial system and U.S. housing and real estate markets, or to reform the U.S. housing finance system including the resolution of the conservatorship of Fannie Mae and Freddie Mac; the composition of the Board of Governors of the Federal Reserve; the political environment in the U.S.; systems failures or cybersecurity incidents; and exposure to current and future claims and litigation. For additional information on risk factors that could affect the Company's forward-looking statements, see the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and other reports filed with and furnished to the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by these and other cautionary statements that the Company makes from time to time in its filings with the Securities and Exchange Commission and other public communications. The Company cannot assure the reader that it will realize the results or developments the Company anticipates or, even if substantially realized, that they will result in the consequences or affect the Company or its operations in the way the Company expects. Forward-looking statements speak only as of the date made. The Company undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances arising after the date on which they were made, except as otherwise required by law. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, the Company. Company Description Dynex Capital delivers value at the intersection of capital markets and housing finance, using our expertise to transform residential real estate into compelling long-term yields for our shareholders. We are committed to ethical stewardship of stakeholders' capital, expert risk management, disciplined capital allocation, and social responsibility. We generate dividend income and long-term total returns through the financing of real estate assets, and by doing so, support the growth and vitality of housing communities in the United States. We employ comprehensive risk management and disciplined capital allocation to provide shareholders with attractive and consistent risk-adjusted returns over the long term. Dynex Capital operates as a real estate investment trust (REIT) and is internally managed to maximize stakeholder alignment. Additional information is available at View source version on Contacts Alison Griffin(804) 217-5897 Sign in to access your portfolio
Yahoo
11-06-2025
- Business
- Yahoo
Chimera Declares Second Quarter 2025 Common Stock Dividend
Board Declares Second Quarter 2025 Dividend of $0.37 Per Share of Common Stock NEW YORK, June 11, 2025--(BUSINESS WIRE)--The Board of Directors of Chimera Investment Corporation announced the declaration of its second quarter cash dividend of $0.37 per common share. The dividend is payable on July 31, 2025 to common stockholders of record on June 30, 2025. The ex-dividend date is June 30, 2025. About Chimera Investment Corporation Chimera is a publicly traded real estate investment trust, or REIT, that is primarily engaged in the business of investing for itself and for unrelated third parties through its investment management and advisory services in a diversified portfolio of real estate assets, including residential mortgage loans, Non-Agency RMBS, Agency RMBS, business purpose and investor loans, including RTLs, and other real estate-related assets such as Agency CMBS. Forward-Looking Statements This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as "goal," "target," "assume," ''believe,'' ''expect,'' ''anticipate,'' ''estimate,'' "project," "budget," "forecast," "predict," "potential," ''plan,'' ''continue,'' ''intend,'' ''should,'' ''may,'' "could," ''would,'' ''will'' and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our most recent Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, under the caption "Risk Factors." Factors that could cause actual results to differ include, but are not limited to: our ability to obtain funding on favorable terms and access the capital markets; our ability to achieve optimal levels of leverage and effectively manage our liquidity; changes in inflation, the yield curve, interest rates and mortgage prepayment rates; our ability to manage credit risk related to our investments and comply with the Risk Retention Rules; rates of default, delinquencies, forbearance, deferred payments or decreased recovery rates on our investments; the concentration of properties securing our securities and residential loans in a small number of geographic areas; our ability to execute on our business and investment strategy; our ability to determine accurately the fair market value of our assets; changes in our industry, the general economy or geopolitical conditions; our ability to successfully integrate and realize the anticipated benefits of any acquisitions, including the Palisades Acquisition; our ability to operate our investment management and advisory services and manage any regulatory rules and conflicts of interest; the degree to which our hedging strategies may or may not be effective; our ability to effect our strategy to securitize residential mortgage loans; our ability to compete with competitors and source target assets at attractive prices; our ability to find and retain qualified executive officers and key personnel; the ability of servicers and other third parties to perform their services at a high level and comply with applicable law and expanding regulations; our dependence on information technology and its susceptibility to cyber-attacks; our ability to comply with extensive government regulation; the impact of and changes in governmental regulations, tax law and rates, accounting guidance, and similar matters; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; our ability to maintain our classification as a real estate investment trust for U.S. federal income tax purposes; the volatility of the market price and trading volume of our shares; and our ability to make distributions to our stockholders in the future. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these, and other risk factors, is contained in Chimera's most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Readers are advised that any financial information in this press release is based on company data available at the time of this presentation and, in certain circumstances, may not have been audited by Chimera's independent auditors. View source version on Contacts Investor
Yahoo
02-05-2025
- Business
- Yahoo
Regan Capital Launches the Regan Fixed Rate MBS ETF (NYSE: MBSX)
Veteran asset-backed securities portfolio manager Skyler Weinand launches MBSX, an actively managed exchange-traded fund that invests in fixed rate Residential Mortgage-Backed Securities DALLAS, May 02, 2025--(BUSINESS WIRE)--Regan Capital, an investment firm with approximately $2.6 billion in assets under management, today announced the launch of the Regan Fixed Rate MBS ETF (NYSE: MBSX), an actively managed exchange-traded fund that invests primarily in fixed rate Agency Residential Mortgage-Backed Securities (RMBS). Agency RMBS typically offer higher yields than Treasury bonds without significant additional risk, since Agency RMBS are backed by government sponsored entities, such as Fannie Mae and Freddie Mac. MBSX seeks to enhance the spread that Agency RMBS yields typically have over yields on Treasury bonds and corporate bonds through the alpha generated from its portfolio of actively managed Agency RMBS. MBSX follows the February 28, 2024 launch of Regan Capital's first ETF, the Regan Floating Rate MBS ETF (NYSE: MBSF), an actively managed exchange-traded fund that invests primarily in floating rate Agency Residential Mortgage-Backed Securities (RMBS), which has approximately $150 million in assets as of March 31, 2025. "MBSX gives investors access to the massive $10 trillion Agency Residential Mortgage-Backed Securities market. With the ETF's actively managed strategy, investors can access a high quality and government-backed product at much cheaper valuations than traditional fixed income assets like Treasury bonds or corporate bonds," said Skyler Weinand, chief investment officer and managing member of Regan Capital and portfolio manager of MBSX. The fixed rate aspect of MBSX seeks to offer a stable and more predictable income during a time of heightened volatility across many asset classes. "As investors look for safety as markets reel from tariff-driven volatility and fears, we consider fixed rate Agency Residential Mortgage-Backed Securities to be immune from tariffs since they are priced on existing U.S. home loans, and not reliant on the construction of future homes, which may face headwinds from rising materials and building costs from tariffs," Weinand added. The Agency RMBS in MBSX are purchased on over-the-counter (OTC) markets, which are typically only available to investors with deep relationships with primary dealers and brokers. MBSX is launching with roughly $10 million from select seed investors. MBSX charges a 0.40% annual operating expense fee and does not seek to replicate the performance of any index. In 2020, Regan Capital launched the Regan Total Return Income Fund (RCIRX), a mutual fund with assets over $1.36bn, which invests across the fixed income market with a focus on mortgage bonds. It was the recipient of the 4-Star Morningstar Rating™, based on risk-adjusted returns for the three-year and overall periods, out of 279 funds in the Nontraditional Bond Category as of 3/31/2025. For more information, please visit: About Regan Capital Founded in 2011, Regan Capital, LLC is an SEC Registered Investment Adviser. The firm's target investor base includes endowments and foundations, banks and insurance companies, corporate and public pension plans, family offices, high net worth individuals and Registered Investment Advisors. The firm is based in Dallas, Texas. Regan Capital was founded by Skyler Weinand, who serves as chief investment officer and managing member. Previously, Weinand was head of residential and consumer asset-backed (ABS) securities trading at Cantor Fitzgerald from July 2007 to March 2011. Prior to that, Weinand was responsible for trading a $2+ billion mortgage-backed securities (MBS) portfolio at Sit Investment Associates from July 2005 to June 2007. From 2001 to 2005, Weinand was employed with GMAC-RFC, where he was responsible for portfolio valuation on a $1 billion MBS subordinate book, structuring CDOs, and structuring the first re-performing securitizations to come to market. Disclosures: Investors should consider the investment objective, risks, and charges and expenses of the Fund(s) before investing. The prospectus contains this and other information about the Fund(s) and should be read carefully before investing. The prospectus may be obtained by calling the Fund toll-free at (800)-617-0004 or at Investors should consider the investment objective, risks, and charges and expenses of the Fund(s) before investing. The prospectus contains this and other information about the Fund(s) and should be read carefully before investing. The prospectus may be obtained by calling the Fund toll-free at (844)-988-6273 or at The Regan Total Return Income Fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read it carefully before investing. A free hard copy of the prospectus can be requested by calling +1 888-988-6273 or at Regan Fixed Rate MBS ETF is distributed by Quasar Distributors, LLC member FINRA/SIPC. Regan Capital, LLC is not affiliated with Quasar Distributors, LLC. The Regan Total Return Income Fund is distributed by Quasar Distributors, LLC, which is not affiliated with Regan Capital, LLC, Northern Lights Distributors, LLC, or any of their affiliates. Regan Floating Rate MBS ETF is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Regan Capital, LLC is not affiliated with Northern Lights Distributors, LLC IMPORTANT RISKS: Exchange Traded Fund investing involves risk. Principal loss is possible. The Fund is newly formed and has no operating history. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by any government agency. There is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid losses. Diversification does not ensure a profit or guarantee against loss. As a result of its active trading strategy, the Fund may incur higher levels of brokerage fees and commissions, and cause higher levels of current tax liability to shareholders in the Fund. The Fund invests in MBS issued or guaranteed by the U.S. government or one of its agencies or sponsored entities, some of which may not be backed by the full faith and credit of the U.S. government. MBS are subject to interest rate, prepayment, and extension risk. MBS are dependent on real estate prices and real estate fundamentals. When real estate prices face a significant decline, the Fund's securities may be negatively affected. Regulatory actions may also have an adverse impact on real estate prices. ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF's shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact an ETF's ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns. The Morningstar Rating for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange -traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. As of 3/31/25, the Regan Total Return Income Fund (RCIRX) received a Morningstar Rating of 4 stars (overall and for the three-year time period) out of 279 funds in the Nontraditional Bond Category. 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Business Wire
02-05-2025
- Business
- Business Wire
Regan Capital Launches the Regan Fixed Rate MBS ETF (NYSE: MBSX)
DALLAS--(BUSINESS WIRE)-- Regan Capital, an investment firm with approximately $2.6 billion in assets under management, today announced the launch of the Regan Fixed Rate MBS ETF (NYSE: MBSX), an actively managed exchange-traded fund that invests primarily in fixed rate Agency Residential Mortgage-Backed Securities (RMBS). Agency RMBS typically offer higher yields than Treasury bonds without significant additional risk, since Agency RMBS are backed by government sponsored entities, such as Fannie Mae and Freddie Mac. MBSX seeks to enhance the spread that Agency RMBS yields typically have over yields on Treasury bonds and corporate bonds through the alpha generated from its portfolio of actively managed Agency RMBS. MBSX follows the February 28, 2024 launch of Regan Capital's first ETF, the Regan Floating Rate MBS ETF (NYSE: MBSF), an actively managed exchange-traded fund that invests primarily in floating rate Agency Residential Mortgage-Backed Securities (RMBS), which has approximately $150 million in assets as of March 31, 2025. 'MBSX gives investors access to the massive $10 trillion Agency Residential Mortgage-Backed Securities market. With the ETF's actively managed strategy, investors can access a high quality and government-backed product at much cheaper valuations than traditional fixed income assets like Treasury bonds or corporate bonds,' said Skyler Weinand, chief investment officer and managing member of Regan Capital and portfolio manager of MBSX. The fixed rate aspect of MBSX seeks to offer a stable and more predictable income during a time of heightened volatility across many asset classes. 'As investors look for safety as markets reel from tariff-driven volatility and fears, we consider fixed rate Agency Residential Mortgage-Backed Securities to be immune from tariffs since they are priced on existing U.S. home loans, and not reliant on the construction of future homes, which may face headwinds from rising materials and building costs from tariffs,' Weinand added. The Agency RMBS in MBSX are purchased on over-the-counter (OTC) markets, which are typically only available to investors with deep relationships with primary dealers and brokers. MBSX is launching with roughly $10 million from select seed investors. MBSX charges a 0.40% annual operating expense fee and does not seek to replicate the performance of any index. In 2020, Regan Capital launched the Regan Total Return Income Fund (RCIRX), a mutual fund with assets over $1.36bn, which invests across the fixed income market with a focus on mortgage bonds. It was the recipient of the 4-Star Morningstar Rating™, based on risk-adjusted returns for the three-year and overall periods, out of 279 funds in the Nontraditional Bond Category as of 3/31/2025. For more information, please visit: About Regan Capital Founded in 2011, Regan Capital, LLC is an SEC Registered Investment Adviser. The firm's target investor base includes endowments and foundations, banks and insurance companies, corporate and public pension plans, family offices, high net worth individuals and Registered Investment Advisors. The firm is based in Dallas, Texas. Regan Capital was founded by Skyler Weinand, who serves as chief investment officer and managing member. Previously, Weinand was head of residential and consumer asset-backed (ABS) securities trading at Cantor Fitzgerald from July 2007 to March 2011. Prior to that, Weinand was responsible for trading a $2+ billion mortgage-backed securities (MBS) portfolio at Sit Investment Associates from July 2005 to June 2007. From 2001 to 2005, Weinand was employed with GMAC-RFC, where he was responsible for portfolio valuation on a $1 billion MBS subordinate book, structuring CDOs, and structuring the first re-performing securitizations to come to market. Disclosures: Investors should consider the investment objective, risks, and charges and expenses of the Fund(s) before investing. The prospectus contains this and other information about the Fund(s) and should be read carefully before investing. The prospectus may be obtained by calling the Fund toll-free at (800)-617-0004 or at Investors should consider the investment objective, risks, and charges and expenses of the Fund(s) before investing. The prospectus contains this and other information about the Fund(s) and should be read carefully before investing. The prospectus may be obtained by calling the Fund toll-free at (844)-988-6273 or at The Regan Total Return Income Fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read it carefully before investing. A free hard copy of the prospectus can be requested by calling +1 888-988-6273 or at Regan Fixed Rate MBS ETF is distributed by Quasar Distributors, LLC member FINRA/SIPC. Regan Capital, LLC is not affiliated with Quasar Distributors, LLC. The Regan Total Return Income Fund is distributed by Quasar Distributors, LLC, which is not affiliated with Regan Capital, LLC, Northern Lights Distributors, LLC, or any of their affiliates. Regan Floating Rate MBS ETF is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Regan Capital, LLC is not affiliated with Northern Lights Distributors, LLC IMPORTANT RISKS: Exchange Traded Fund investing involves risk. Principal loss is possible. The Fund is newly formed and has no operating history. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by any government agency. There is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid losses. Diversification does not ensure a profit or guarantee against loss. As a result of its active trading strategy, the Fund may incur higher levels of brokerage fees and commissions, and cause higher levels of current tax liability to shareholders in the Fund. The Fund invests in MBS issued or guaranteed by the U.S. government or one of its agencies or sponsored entities, some of which may not be backed by the full faith and credit of the U.S. government. MBS are subject to interest rate, prepayment, and extension risk. MBS are dependent on real estate prices and real estate fundamentals. When real estate prices face a significant decline, the Fund's securities may be negatively affected. Regulatory actions may also have an adverse impact on real estate prices. ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF's shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact an ETF's ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns. The Morningstar Rating for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange -traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. As of 3/31/25, the Regan Total Return Income Fund (RCIRX) received a Morningstar Rating of 4 stars (overall and for the three-year time period) out of 279 funds in the Nontraditional Bond Category.
