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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (2626)	8/15/2007 11:22:42 AM
From: The Reaper	Read Replies (2) \| Respond to of 6370

You have more balls than I have, Gunga Din. They're gonna be fighting class action suits until 2010.

To: RockyBalboa who wrote (2626)	8/15/2007 11:25:31 AM
From: RockyBalboa	Respond to of 6370

Loom, lum lum lum lum...

To: RockyBalboa who wrote (2626)	8/15/2007 8:28:28 PM
From: The Reaper	Read Replies (1) \| Respond to of 6370

<This could evolve now into a market that just bleeds a little each day.> Or not..LOL

To: RockyBalboa who wrote (2626)	8/20/2007 8:47:04 AM
From: RockyBalboa	Respond to of 6370

TMA update: Thornburg Mortgage Stabilizes Its Financing Platform and Plans to Return to Business as Usual Monday August 20, 8:24 am ET -- Rapid Sale of $20.5 Billion of Assets Underscores Company's Highly Liquid Portfolio -- Substantial Reduction in Repurchase Borrowings Greatly Reduces Exposure to Margin Calls -- Credit Quality Remains Among the Industry's Best -- 2Q Common Dividend of $0.68 on Schedule for September 17 Distribution SANTA FE, N.M.--(BUSINESS WIRE)--Thornburg Mortgage, Inc. (NYSE:TMA - News), a leading single-family prime residential mortgage lender focused principally on the jumbo segment of the adjustable-rate mortgage (ARM) market, announced today the sale of a substantial portion of its AAA-rated mortgage securities portfolio and a significant reduction in its borrowings portfolio. The company took these actions to address challenges in meeting its liquidity and financing needs caused by rapidly declining mortgage securities prices and simultaneous declines in the value of its hedging instruments. These rapid declines negatively impacted the company's ability to continue to support its borrowings collateralized by its high quality mortgage securities portfolio. As a result of these unprecedented conditions in the mortgage financing market, Thornburg Mortgage undertook the following aggressive portfolio management actions over the past six business days: the sale of approximately $20.5 billion of primarily AAA-rated MBS (mortgage-backed securities), underscoring the salability of the company's high credit quality portfolio; the sale resulted in the reduction of its mortgage asset portfolio from $56.4 billion at June 30, 2007 to approximately $36.4 billion at August 17, 2007; its reverse repurchase and commercial paper borrowings from $32.9 billion at June 30, 2007 to approximately $12.4 billion at August 17, 2007; and its future exposure to margin calls on its short-term borrowings; the termination of approximately $41.1 billion of interest rate hedging instruments, thereby reducing the company's exposure to market value changes related to its hedging portfolio. Because of these actions to stabilize the company's ability to meet its financing obligations and continue its mortgage portfolio lending operation, the company estimates it will realize an approximate capital loss of $930 million as a result of mortgage securities sales for the quarter ending September 30, 2007. Of this total, $700 million was already reflected as an accumulated comprehensive loss on the company's consolidated balance sheet at June 30, 2007. Further, as a result of the termination of its interest rate hedging instruments, the company realized a net gain of approximately $40 million, the majority of which will be capitalized and realized over the remaining life of those hedging instruments as required by FAS133. In light of the dramatic reduction in the company's mortgage portfolio over the past week, the company is not yet prepared to offer earnings or dividend guidance regarding the amount of any future dividends beyond the September 17, 2007 distribution that has already been declared. However, the company did sell most of its lowest yielding and negative spread assets as part of these asset sales and expects to remain profitable on an operating basis in the third quarter. Further, the company believes that mortgage yields have improved to at least 1.25% over its cost of funding new mortgage assets, which indicates an expected improvement in its portfolio margin going forward as compared to its reported margins over the past year. Finally, the company is not yet in a position to comment on any additional tax implications of these portfolio actions. The company's GAAP book value, which includes recent changes in the market value of its mortgage securities portfolio and hedging instruments, continued to decline over the course of the previous week as mortgage market conditions continued to deteriorate and as actual mortgage securities sales were completed by the company. The company's GAAP book value is estimated to be $12.40 as of August 17, 2007, which includes an estimated unrealized market value loss of $2.42 per share as reflected as an accumulated comprehensive loss, compared to $14.28 per share estimate as of August 13, 2007, and $19.38 per share estimate as of June 30, 2007. The further decline in book value is reflective of the continued mortgage market deterioration as well as the market impact of the aggressive sale activities of the company in recent days, not a change in the credit quality of the company's mortgage assets.