Dynex Capital, Inc. (NYSE: DX) President, CEO, and Co-CIO Byron Boston said that while opportunities to invest capital are evident, the mREIT will take time to consider the best risks and returns with respect to the current environment.
“We feel we’re in a good position today, with flexibility, liquidity, and capital to deploy,” Boston said during an April 15 investor update call. In light of the uncertainty, Dynex is taking a balanced approach to the future, he said, “so that we’re prepared to manage our business in a variety of scenarios.”
Smriti Popenoe, co-CIO, said on the call that “our position today allows us to be opportunistic in capital deployment across both sides of our balance sheet as well as a variety of asset classes.”
Asset opportunities are bifurcated between areas that the Federal Reserve is supporting and those it is not, she noted. “We believe we can find interesting opportunities in sectors that the Fed is currently supporting, in large scale asset purchases as well as new opportunities in areas that remain underserved.”
Popenoe added that the demographics behind housing continue to support Dynex’s investment thesis of investing in high quality, U.S.-based housing, “with the key focus now being what risks we want to take on in the current environment.”