New York Times (03/04/08) P. C3
Analysts believe Thornburg Mortgage could file for bankruptcy soon, following an announcement that an increase in margin calls could not be met. Margin calls since Feb. 27 totaled $270 million, and "limited available liquidity" made it difficult for the company to answer these margin calls given that it had to meet $300 million in margin calls from the prior two weeks. The Santa Fe, N.M.-based mortgage lender hopes to boost liquidity through securities sales, debt offerings and raising capital; but it noted that lenders going into default because of its failure to meet margin calls could put a damper on operations. When margin calls are made, borrowers must repay loans or offer additional collateral.
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