BTIG names Dynex favorite stock to benefit from Trump mortgage directive

BTIG says Dynex Capital (DX) is its favorite stock to immediately benefit from President Trump’s directive for the government sponsored enterprises to purchase up to $200B in mortgage-backed securities in an effort to lower mortgage rates. BTIG estimates 8% mark-to-market net asset value upside from agency MBS spreads tightening 20 basis points, which is the move in spreads reflected so far through early Friday. It see similar net asset value changes for the other agency real estate investment trusts, including Annaly Capital (NLY) (NLY,) AGNC Investment (AGNC), Invesco Mortgage (IVR), Armour Residential REIT (ARR). The firm has a Buy rating on Dynex with a $16 price target.