Dynex Capital, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Dynets Capital Inc. Third Quarter 2020 Earnings to Results and Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star, then one on your telephone keypad. If you require further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Alison Griffin, Vice President of Investor Relations, Please go ahead, ma'am.

Thank you. Good morning, everyone, and thank you for joining us. With me on the call today, I have Byron Boston, President and CEO, Smriti Papano, Executive Vice President, CIO, and Steve Benedetti, Executive Vice President, CFO, and COO. The press release associated with today's call was issued and filed with the SEC this morning, October 28, 2020. You may view the press release on the homepage of the Dynex website at dynexcapitals.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 our disclosures filed with the SEC, which may be found on the Dynex website under Investor Center, as well as on the SEC's website. This conference 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 Boston Good morning, and thank you very much for joining our call today. As a fellow shareholder and the CEO of Dynanx Capital, I am extremely pleased with our exceptional performance. We've continued to build book value, which ended the quarter at $18.25 per share, up over 1% for the year. Economic return year-to-date is now 8.4%, and economic return for the third quarter was a strong 11.7%. This performance is especially remarkable given the unprecedented events of 2020 for financial markets. In addition, we generated income that firmly exceeded our monthly dividend payment. It continues to be an exceptional environment to generate attractive cash flows for our shareholders. Financing rates are low, and the liquid assets we're investing in offer attractive risk-adjusted returns while generating strong net interest income. Our balance sheet gives us flexibility to navigate this complex environment. Our philosophy and behaviors remain disciplined. The world is in a major period of transition, and this will be the case for some time. We have aligned our investment strategy across major relevant elements, such as Federal Reserve and government policy and the housing finance system. which offers a great opportunity to earn income for our shareholders. We believe this is one of the safest places to invest money versus all other asset classes at this time. As such, Dynex Capital stock offers a unique opportunity in a world where global yields are low and cash income from high quality assets is difficult to source. Specifically, The stock is trading at a significant discount to book value on a balance sheet that is 97% agency guaranteed with easy to value liquid securities. The monthly dividend of 13 cents translates to a yield of over 900 basis points above the yield of 10-year treasuries. The risk position is being managed by a skilled team of professionals with extensive experience running leveraged portfolios across many assets classes. There is significant earning power in this balance sheet to make accretive investments as the environment continues to provide attractive investment opportunities and liquid assets to drive earnings above the current level of the dividend. With that, I'm going to turn the call over to Steve Benedetti to give you more specifics regarding the quarter.