QUOTE AND NEWS
Benzinga  Nov 19  Comment 
 Omeros Corporation (NASDAQ: OMER) today announced positive data using OMS721, the lead human monoclonal antibody for its mannan-binding lectin-associated serine protease-2 (MASP-2) program, to inhibit thrombus formation in an ex vivo...
TheStreet.com  Oct 30  Comment 
NEW YORK (TheStreet) -- A typical investor many not associate Gilead Sciences , the small-cap biotech stock Phibro Animal Health and Netflix to be in the portfolio of a value investor.  But those are the stocks that have caught Connor...
Benzinga  Oct 3  Comment 
Lululemon Athletica Inc. (NASDAQ: LULU) experienced some movement Friday on news that Thornburg Investment Management Inc. reduced its stake in the company. Thornburg’s August 11 13F filing disclosed ownership of 9,596,914 shares of...
SeekingAlpha  Aug 30  Comment 
By ValueWalk: By Michael Ide Thornburg Investment Management says that most investors don’t appreciate the importance of expenses and taxes on long-term portfolio performance. It’s easy to get caught up in day-to-day market...
MarketWatch  Aug 20  Comment 
Subprime-era suit alleges that Barclays made improper margin calls that helped drive the mortgage lender into bankruptcy.
SeekingAlpha  Jul 21  Comment 
Thornburg Value Fund Q2 Letter To Investors For the U.S. equity markets, the second quarter of 2014 felt a bit boring. As of this writing, the S&P 500 had made it 57 days without moving up or down more than 1%. This is the longest such streak...
DailyFinance  Jul 8  Comment 
INDIANAPOLIS, IN -- (Marketwired) -- 07/08/14 -- Union Equity, Inc. (OTC Pink: UNQT) (PINKSHEETS: UNQT) would like to announce at this time, CEO, JT Thornburg and the Board of Directors believe it beneficial to do a share retirement program. One...
The Hindu Business Line  Jul 2  Comment 
Teachers should accord importance to research activities, said HS Ballal, Pro-Chancellor of Manipal University. Inaugurating a research workshop conducted by the Dr TMA Pai Endowme...
DailyFinance  Jun 4  Comment 
INDIANAPOLIS, IN -- (Marketwired) -- 06/04/14 -- Union Equity, Inc. (OTC Pink: UNQT) (PINKSHEETS: UNQT), and CEO JT Thornburg, would like to announce at this time, that Union Equity Inc. has opened its first international office in Toronto,...
DailyFinance  Mar 25  Comment 
INDIANAPOLIS, IN -- (Marketwired) -- 03/25/14 -- Union Equity, Inc. (OTC Pink: UNQT) (PINKSHEETS: UNQT) and CEO JT Thornburg are pleased to announce that through its subsidiary, Union Equity Investments Inc., is negotiating with several...




RELATED WIKI ARTICLES
 

Thornburg Mortgage (TMA) is a residential mortgage lender that originates, acquires, and makes investments in ARM (adjustable-rate mortgage) assets. The company elects to be treated as a REIT (Real Estate Investment Trust) for federal income tax purposes. The company's ARM assets consist of purchased ARM assets and ARM loans. Purchased ARM assets are mortgage-backed securities that represent interests in pools of ARM loans. The company's ARM loans are either loans that were originated by TMA, loans used as collateral to support the issuance of CDO's (collateralized debt obligations) or loans pending securitization. The company finances its loan purchases and originations through various sources including equity issuance, unsecured debt, CDO's and short term borrowings. When the company borrows short-term funds, they generally enter into interest hedging transactions to mitigate the impact of fluctuations in short-term rates.

Thornburg, which caters to borrowers with strong credit, specializes in "jumbo" mortgages - loans that exceed $417,000. It avoids subprime loans, generally. Until Feb 2008, Thornburg’s loans were too big to be purchased by Federal National Mortgage Association (FNM) and Freddie Mac (FRE).

The company originates its mortgage loans through 313 correspondent lenders and directly to consumers in all 50 states. The company also has 18 field executives and 541 brokerage firms to facilitate its wholesale business. TMA outsources most of its standardized origination functions, loan processing, closing, and servicing, to third-party providers. As a result, the company does not have a nationwide branch network.

Business Financials

The company makes money from the net spread, or the difference between income from interest on ARM assets and the cost of borrowings. As of September 30, 2007, the company had total assets of $36.3 billion, short-term borrowings in the form of commercial paper, reverse repurchase agreements and whole loan financing of $12.2 billion, and permanent mortgage debt, in collaterals, of $21.1 billion. The company concentrates it business on larger balance high credit loans, which decreases default risk. As of September 30, 2007, the company's portfolio consisted of 94.8% AAA-rated assets and 5.2% below AAA-rated assets.

Subprime Crisis

Thornburg Mortgage Inc. (TMA) said on 25th March 2008 that it would raise $1.35 billion through a private-placement deal to help keep the company in business and avoid bankruptcy. It avoided subprime loans, which have had the highest rates of default, but ran short on cash after falling home sales reduced demand and investors wary of mortgage-backed assets retreated from the company’s securities.

Thornburg has lost 95% of its value in the past year, and is desperately fighting to stay afloat. It needs approximately $1 billion this week to meet margin calls from bankers. A previous plan to raise about $1 billion in convertible notes with an interest rate of 12% failed and was subsequently terminated.

Having suspended its preferred dividends and offered to buy back 90% of its preferred stock, Thornburg is now seeking to raise $1.35 billion using debt that pays an 18% interest rate. If the New York Stock Exchange grants its approval, Thornburg will issue senior subordinated secured notes due in 2015 without shareholder approval, which the company says would take too long.

An infusion of fresh capital is the centerpiece of a recent agreement Thornburg struck with its creditors, who agreed to freeze their demands for more collateral, so long as the company can raise at least $948 million in seven business days. If this offer fails, and the company’s creditors withdraw from the agreement, Thornburg will likely be forced into bankruptcy.

References

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki