Thornburg Affirms Investment Strategy

Thornburg Mortgage Asset Corp., Santa Fe, N.M., has affirmed its strategy of investing in high-quality adjustable-rate mortgage securities and avoiding investments in interest-only strips, servicing, and fixed-rate mortgages.The prepayment rate on the company's portfolio "declined modestly" in June, Thornburg said. "Fully 94% of the company's ARM assets are securitized in order to minimize credit exposure and reduce funding costs," the company said. Thornburg said it does not own any IO strips, mortgage loan servicing, or 15- or 30-year fixed-rate mortgage products and does not intend to buy such products in the future. The company also said it has no intention of realizing any losses on the sale of its portfolio and "is not under any pressure to sell any assets."