Dynex Capital Inc. (NYSE:DX) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 10:00 am ET


Dynex Capital Inc. (NYSE:DX) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Dynex Capital's Second Quarter 2020 Earning Results and Conference Call. [Operator Instructions] After the speakers' presentation, there will be a question-and-answer session.

[Operator Instructions]

I would now like to hand the conference over to your speaker today, Alison Griffin, Vice President, Investor Relations. Thank you. Please go, ahead.

Alison Griffin

Thank you, Casey. Good morning, everyone, and thank you for joining us. With me on call today is Byron Boston, President and CEO; Smriti Popenoe, EVP, CIO; and Steve Benedetti EVP, CFO and COO. The press release associated with today's call was issued and filed with SEC this morning, July 29, 2020. 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.

Before we begin, we 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. 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 the Annual Report on Form 10-K for the period ending December 31, 2019 as filed with the SEC.

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

I now have the pleasure of turning the call over to our CEO, Byron Boston.

Byron L. Boston

Good morning, and thank you very much for joining our call today. As the CEO and a shareholder of Dynex Capital, I am excited about the future of our business. I have a strong and experienced team of professionals, managing our capital. We believe it is an exceptional environment to generate solid cash flows for our shareholders. Financial rates are low and the liquid assets were invested in offer attractive risk-adjusted returns and are generating solid net interest income. And our balance sheet gives us flexibility to navigate the complex environment.

For over 30 years, Dynex Capital has managed, leveraged, securitized asset portfolios to generate cash income for our shareholders. We have managed every asset class that you see represented across the mortgage REIT industry today. Over the past few years however, as global risk have intensified, we have chosen to limit our investment focus to assets with the highest credit quality and highest levels of liquidity.

In addition, we have chosen to maintain a higher level of overall liquidity