Luminent Cites Growing Margin Calls

Luminent Mortgage Capital Inc., San Francisco, says that, as a result of the secondary-market liquidity crisis, it is "simultaneously experiencing a significant increase in margin calls on its highest-quality assets and a decrease on the financing advance rates provided by its lenders."As a result, the company suspended its second-quarter dividend of $0.32 per share and extended the maturity of the outstanding commercial paper issued by an affiliate by 110 days. Trading in Luminent's common stock was halted for a period, but has been resumed. Investors have battered the stock, driving it down by $3.61 to $0.77 per share as of noon on Aug. 7. Luminent canceled its second-quarter earnings conference call, scheduled for Aug. 9. However, it did release its second-quarter results, reporting net income of $13.4 million ($0.30 per share), down from $17.6 million ($0.45 per share) a year earlier.