Episode Details

Mortgage REITs can offer attractive income, but how do they actually work—and what risks should income investors understand?I’m joined by Smriti Popenoe, Co-CEO and President of Dynex Capital (Ticker: DX) to take a deep dive into mortgage REIT investing and how Dynex approaches the market.Dynex Capital is a mortgage REIT focused primarily on Agency mortgage-backed securities (MBS), which have different characteristics and risks than the properties owned by traditional equity REITs.In this interview, we cover:• How mortgage REITs work and how they differ from equity REITs• Why Agency MBS can be attractive from a risk-adjusted return perspective• Mortgage rates around 7%—and whether higher rates are necessarily bad for mortgage REITs• Why investors should think differently about Dynex compared with the mortgage REIT stress we've seen in past cycles• Where Dynex is finding the best opportunities in today's market• How Dynex uses leverage and why it matters to investors• How the company thinks about its monthly dividend and dividend sustainability• Dynex vs. bonds, dividend stocks, equity REITs and other mortgage REITs• What gives management confidence in Dynex's opportunity over the next three to five yearsFor income investors, mortgage REITs can be an intriguing part of a portfolio, but the headline yield is only part of the story. Understanding the underlying assets, leverage, interest-rate sensitivity and how the company manages risk is critical.If you're looking for a deeper understanding of mortgage REITs and Agency MBS, this conversation with Smriti Popenoe is worth watching.Find out more at www.dynexcapital.comNOTE: This discussion was recorded on September 21, 2026 and the information provided was as of the date of recording and may change.Disclaimer: This video is for informational and educational purposes only and is not financial advice. Always do your own research before investing.