Thornburg Mortgage Affirms Strategy
SANTA FE, N.M.--(BUSINESS WIRE)--Oct. 6, 1998--Thornburg Mortgage Asset Corp. (NYSE:TMA) Tuesday affirmed for its investors that its business strategy as an investor in high quality adjustable-rate mortgage (ARM) securities and loan products continues to be sound in spite of the negative developments in the credit markets created by the CRIIMI MAE bankruptcy filing.
Fully 94% of the company's ARM assets are either AA or AAA rated or FNMA/FHLMC ARM securities, or A-quality whole loans that are held for securitization.
The company further wishes to state that, unlike the mortgage REIT CRIIMI MAE, it does not invest in subordinate classes of non-investment-grade (less than BBB) commercial mortgage-backed securities. Further, while it is true that there are liquidity concerns in the marketplace, the company is not experiencing difficulty in meeting its payment obligations. In fact, the recent cut in short-term interest rates has helped reduce the company's cost of funds.
Larry Goldstone, president of the company, said, "In light of the significant impact CRIIMI MAE has had on the credit markets, we may need to execute several options to increase liquidity. This may include selling some assets. However, there is currently no external pressure to do so."
As of June 30, the company reported a book value per common share of $13.87, which included an adjustment for the market value of the company's portfolio. As of Aug. 31, 1998, the most recent month available, the company's book value was $13.71 per common share. The company will be announcing its third quarter earnings and declaring its quarterly dividend on Oct. 16, 1998. |
