# Dynex Q3 2026 Earnings Decline

> Dynex reports 15.4% book value drop as mortgage spreads widen.
- Title: Dynex Q3 2026 Earnings Decline · The Motley Fool | Shortify
- Summary: Dynex reports 15.4% book value drop as mortgage spreads widen. Dynex's book value per share fell to $10.91 after wider mortgage-backed securities spreads and…
- Keywords: dynex, q3 2026, book value, agency mbs, spread widening, interest rate volatility, comprehensive loss, preferred equity, finance, money, 2026, Earnings
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/19/dynex-dx-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-19T18:53:06+00:00
- Read time: 2 min
- Topics: dynex, q3 2026, book value, agency mbs, spread widening, interest rate volatility, comprehensive loss, preferred equity, finance, money
## Book Value Decline
Dynex's book value per share dropped to $10.91 as of Sept. 30, 2026, a 15.4% decline from $12.90 as of June 30, 2026.
## Total Economic Return
Dynex reported a total economic return of -11.5% for Q3 2026, reflecting the book value decline and $0.51 per share dividend.
## Investment Portfolio Growth
Dynex's total investment portfolio increased to $28.3 billion, driven by $3.2 billion in Agency MBS purchases.
## Agency RMBS Portfolio
Dynex's Agency RMBS portfolio stood at $26.8 billion, a 3% increase from June 30, 2026.
## Agency CMBS Portfolio
Dynex's Agency CMBS portfolio totaled $1.5 billion, representing 5% of the total investment portfolio.
## Comprehensive Loss
Dynex reported a comprehensive loss of $1.49 per share compared with $0.80 per share comprehensive income in Q2 2026.
## Net Capital Raised
Dynex raised $384 million net capital, including $268 million in common equity through at-the-market program and $116 million in preferred stock.
## Preferred Equity Issuance
Dynex issued $116 million net proceeds from 9.375% Series D preferred stock, its first preferred offering in over six years.
## Liquidity Position
Dynex maintained $1.3 billion in cash and unencumbered securities, representing 42% of total equity as of Sept. 30, 2026.
## Leverage Ratio
Dynex's leverage ratio increased to 9.0 times shareholders' equity from 8.1 times at June 30, 2026.
## Economic Net Interest Spread
Dynex's economic net interest spread remained stable at 1.18% as asset yields increased to 5% and financing costs rose to 3.82%.
## Repo Financing
Dynex had $24.19 billion in repo financing across more than 25 counterparties.
## General and Administrative Expenses
Dynex's G&A expenses represented 2% of total equity on an annualized basis, down 40% from same period in 2025.
## Interest Rate Sensitivity
Dynex models a 0.5% decline in common equity for a 50 basis point rise in interest rates.
## Spread Sensitivity
Dynex's spread sensitivity increased to 5.7% common equity impact per 10 basis points of spread movement.
## Static Return on Equity
Dynex's static ROE on new investments ranges from 20% in lower coupons to 25% in current coupons.
## Refinance Incentive
Dynex reports 1% of outstanding mortgages have refinance incentive as most agency mortgages trade below par.
## Estimated Book Value
Dynex's estimated book value per share was $10.95 as of Oct. 16, 2026.
## Preferred Equity Composition
Dynex's preferred equity now represents 7% of total equity base, up from 3% prior to Series D offering.
## Repo Spreads
Dynex's repo spreads remained stable at 12 to 15 basis points to SOFR.
## Key takeaway

Dynex's book value per share fell to $10.91 after wider mortgage-backed securities spreads and higher interest rate volatility.