Dynex Capital Inc is a real estate investment trust that primarily invests in residential and commercial mortgage-backed securities on a leveraged basis. The company’s investment portfolio is comprised of residential mortgage-backed securities, or RMBS, commercial mortgage-backed securities, or CMBS, and interest-only CMBS. Agency RMBS collateralized by adjustable-rate mortgages represent the largest share of Dynex’s holdings. CMBS and interest-only CMBS collateralized mainly by single-family rental properties, multifamily developments, and retail spaces located across the United States also make up sizable amounts of the company’s portfolio. Dynex derives substantially all of its income as interest from its investments.