FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * AKIN THOMAS B   2. Issuer Name and Ticker or Trading Symbol DYNEX CAPITAL INC [DX] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director __X__ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Chairman and CEO (Last) (First) (Middle) C/O DYNEX CAPITAL, INC., 4991 LAKE BROOK DRIVE, SUITE 100 3. Date of Earliest Transaction (Month/Day/Year) 10/15/2010 (Street) GLEN ALLEN, VA 23060 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 10/15/2010   J(1)   179,617 A $ 0 (1) 804,706 D   Common Stock 10/15/2010   J(1)   17,342 A $ 0 (1) 28,788 I By Hochster Trust Common Stock 10/15/2010   J(1)   361,064 A $ 0 (1) 1,304,083 I By Talkot Fund

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Series D Preferred Stock (2)

(1)

10/15/2010

J(1)

179,617 (3)

(1)

(1)

Common Stock

179,617 (3)

$ 0 (1)

0

D

Series D Preferred Stock (2)

(1)

10/15/2010

J(1)

17,342

(1)

(1)

Common Stock

17,342

$ 0 (1)

0

I

By Hochster Trust

Series D Preferred Stock (2)

(1)

10/15/2010

J(1)

361,064

(1)

(1)

Common Stock

361,064

$ 0 (1)

0

I

By Talkot Fund

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
AKIN THOMAS B C/O DYNEX CAPITAL, INC. 4991 LAKE BROOK DRIVE, SUITE 100 GLEN ALLEN, VA 23060	X	X	Chairman and CEO

Signatures

Alison G. Griffin, as attorney-in-fact for Thomas B. Akin		10/19/2010
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	On October 15, 2010, Dynex Capital, Inc. redeemed all of its Series D Preferred Stock in exchange for shares of its common stock at a one-for-one redemption ratio, in accordance with the terms of the Series D Preferred Stock. Before such redemption, the Series D Preferred Stock was convertible into common stock at any time on a one-for-one basis, with no expiration date.
(2)	The full name of the Series D Preferred Stock is "Series D 9.50% Cumulative Convertible Preferred Stock."
(3)	Reflects a reduction of 30,844 shares of Series D Preferred Stock in which the reporting person no longer has a reportable beneficial ownership interest. Such shares, which were previously reported in the reporting person's direct holdings, are owned by the reporting person's adult children who no longer reside in his household.

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