Thornburg Mortgage Inc., a troubled real estate investment trust based in Santa Fe, N.M., has completed a collateralized mortgage debt transaction backed by $992 million of the company's prime hybrid adjustable-rate mortgages. Thornburg said it expects "an increased use of collateralized mortgage debt financing and reduced reliance on reverse repurchase financing." The company has recently faced hundreds of millions of dollars in margin calls related to reverse repurchase financing that it said could potentially have a negative "material" impact on its finances if the company is unable to meet the payment demands from its counterparties. Thornburg can be found online at http://www.thornburg.com.
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