# Dynex Estimates 20%–25% Modeled Static ROE on New Investments By John Kim Canonical URL: https://www.tokenpost.com/news/business/35145 Published: 2026-10-20T00:24:27.000Z Updated: 2026-10-20T00:24:27.000Z Section: Business > Its third-quarter book value fell 15.4% to $10.91 per share. Quarter-end leverage was 9.0 times equity, including to-be-announced securities at cost. Dynex Capital, Inc., a mortgage real estate investment trust, outlined modeled static returns on equity of 20% for lower-coupon mortgage-backed securities and 25% for current-coupon securities, as wider spreads lifted estimated returns on new purchases. The figures are model estimates, not realized returns. They apply to new investments hedged with interest rate swaps. Dynex’s model assumes roughly 10 times leverage. The estimates also reflect wider spreads, improved convexity and reduced rate sensitivity. Dynex reported leverage of 9.0 times shareholders’ equity at Sept. 30. That quarter-end calculation includes to-be-announced (TBA) securities at cost, while the model uses roughly 10 times leverage for its new-investment estimates. The modeled returns come as the company’s existing portfolio recorded a difficult quarter. Book value declined 15.4% from $12.90 per share on June 30 to $10.91 on Sept. 30. Dynex’s total economic return was negative 11.4% for the quarter, with wider mortgage-backed securities spreads accounting for more than 80% of the negative return. Dynex raised $384 million in capital during the quarter, net of commissions. The company issued Series D preferred stock, maintained more than $24 billion in repurchase financing and ended the quarter with $1.3 billion in liquidity, consisting of cash and unpledged securities. The difference between the modeled figures and quarter-end results is the investment period they describe: the 20%–25% estimates apply to potential new purchases, while the book-value and total-return figures cover the third quarter. Dynex’s 9.0-times leverage figure is its quarter-end measure; the model’s roughly 10-times assumption is part of the return estimate. The results followed an [earlier preview of Dynex’s quarterly earnings](). ## Links in this article - [earlier preview of Dynex’s quarterly earnings](https://www.tokenpost.com/news/business/34493)