Dynex Capital

Dynex Capital is an internally managed mortgage real estate investment trust, or mortgage REIT, which invests in residential and commercial mortgage-backed securities on a leveraged basis. The Company invests in Agency and non-Agency mortgage-backed securities consisting of residential MBS, commercial MBS and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The Company's investments in non-Agency MBS are generally higher quality senior or mezzanine classes because they are typically more liquid and have less exposure to credit losses than lower-rated non-Agency MBS.