I in higher you, our It is we you period conference our changed opinion environment. a a only overall not in It call time return first our morning. that to confidence period morning. since of Good say Alison last this with that, very can has all we’ve transitional a and February. thank our joining call thesis. for been short are investment Thank
large the sheets of the drive environment global where these the to large Government creating uncertainty fragile economic created environment. economic returns, highly balance probable. central have policies will a is bank markets policies but amount the global and fragility Second, unfortunately debt global surprises are around of adding
such, invested an we As assets portfolio quality, because in anticipating our high heavily are be environment. return continues liquid to high improved
a terms maintain unlevered overall of assets. in and high of We level liquidity continue cash to
offset positive the the rise able the we at X. portfolio of GAAP value our the Let's income leverage a share. Due Furthermore, results to book our is produced quarter. hold common we rate quarter, a please of go our the residential and per over diversified $X.XX to to for impact share to the impacts environment, loss we have future still rates our quarter. turn the core anticipating we steady result, Throughout environment. negative for times maintained on are a and return we volatility in economic increase value better to a as were rate the net rising environment, of $X.XX room common small for the book in unrealized small our we posted of per share. important results as duration portfolio book. Slide to as leverage dividend reduce These X.X the relatively quarter, generated X.X% helped and cash any commercial for our from first note operating common in that also Despite to X.X% helped to It decline
X. to on composition Let’s portfolio and X Slides our turn
and quality easily can we You see to our credit how portfolio. chosen liquidity emphasize in have
We have and balance and assets to positions of in our increased agency decreased sheet. portfolio we have treasury non-agency XX% our our
compensate within to this the and by lower XX% macro, and stabilize offered in is the overall we monthly a securities, commercial is basis. has fluctuations years. less environment the is continues commercial important the and versus commercial in quality sector. that backed sectors marginal which assets, believe XX% This and that a most lower on the note in and operate. invest us not assets, mainly We profile liquid reduces of investment agency important between risk it past residential diversification global assets heavy our returns rated drives However, duration by relative in the diversify at highly we been only concentration to place portfolio and residential risk assets. multifamily Dynex for us to really is prepayment key our be that assets credit for our thesis assets backed while do tight continue opinion is credit, book high securities. liquid The helps to assets of XX to cash return Furthermore, extremely our the
me seven investment to please and six Now slide thesis. elaborate our turn on let and
must amount US a their reduce As the policy of One, higher catalysts sheet. environment materially a put in transition Capital. increasing of central earlier, will fiscal return on U.S. period that believe monthly banks I the we and balance that mentioned be the have desired favorable the Dynex motion. to the Several the markets Two, market basis. transitional absorb are debt a tighten in size for to credit is
heavily increased global uncertain very It created fragile debt and In has policies. addition, economic very is increasing and environment. a government probability the the global levels Then by finally, increased. high surprises driven have has of
The shareholders. effectively are capital factors all invest returns will above returns we factors success opportunities to anticipating for to As of in transition point these long accretive result A this the our higher term be to through a as managing period. key future. Dynex
opportunistic through current throughout our as allocation. the management disciplined career capital manage will risk We environment have we with and
our strategy current of is component liquidity, important liquidity. most the liquidity, However,
interest Please turn arise. opportunities liquidity increase X income to options on and when Our Slide focus gives us to X. net investment
We million redeploy into higher have assets. U.S. available XXX Treasuries to spread
to unlevered can we're million overall We returns yielding XXX assets increase sheet hybrid Furthermore, improve. gives to assets. earning and covering balance our when have modestly higher in the reallocated We future. option a our position in ARMs widen Also, and spread above with at will be the cash leveraged which will us weather spreads dividend and investing also value new that average volatility capital and securities allow expect us at results driver - to returns. in capital that returns of wider any higher be main deploy higher the book capital fully
business trends me our that emphasize Finally, there model. that really a let are long-term support
continue demand continue investors to support the so increasing to of seeking the valuations will next mortgage cash cash REITs. Simply do First, for average long-term yield and is put above substantial yield global population decade. until of we’ll
opportunity improve. their to will fit Second, central investment balance have the continue the the bank bankers the growing assets to reduce central joined balance put, a sheets but risk. they opportunities willing get supply sheet, point reduces levels its capital will other assume reduced, expanding the of at balance will to to where also global from to are Simply as where the assets be sheet the and Fed begin private reprice
throughout to XX was illustrate me slide Hence the and reduce a helps There as presence great There in Washington this that opportunity to XX. the a please that private system. is role. for reduced should is its opportunity size such opportunity, turn a consensus the government a Dynex, U.S. capital the government Now as play there vehicles Dynex. housing for of attempts federal great
outstanding. on slide mortgage market just on with focus market enormous an XX. in residential loans the trillion Let's market is This XX
see you the trillion in agency these are securities. loans of graph, As can in X.X top
amount Now careers the that deliberately first is of XX% reducing There’s the government's owns enough private in size their of desire supply substantial. their capital you see, is our can sheet. exposure. in agency lower government marketplace. And reduce U.S. the government support to note This time globally overall the of chart that as the balance the to this is the
to that prices a make our we sheet adjust These spreads slowly for are have we Fed's the tailwind as to in balance the that However, believe us anticipate factors continues business. run-off.
separate. reallocate then slide on our management opportunities continue this these on that anticipate team the experience when we skills have At has long-term, capital and they opportunity we're note averages. the on to our market When returns liked chart. return the the XX, until fully I end always And will and above best at to for long-term long-term invest transitional always our focused to when average capital the run period lines Dynex dividends to to drive we together Our returns, are shareholders. better finally and weather the above
markets driver that much we heavy next we believe adjusting wider future that back in You above of the you. and illustrated future - time capital and -- picture and the in as here And can questions years that out. see you five of see Thank for deployed will line five returns at overall open point at we spread average will ‘XX up and impact still to years, the as dividends the XXXX
