Thornburg: Default Could Be 'Material'

JPMorgan Chase Bank NA will be exercising its rights in a default on a margin call of about $28 million at Thornburg Mortgage, triggering cross-defaults that Thornburg said could be "material," according to a Securities and Exchange Commission filing. Thornburg, a real estate investment trust based in Santa Fe, N.M., had said earlier that it was in default with one reverse-repurchase counterparty involved in the second of two sets of margin calls it faced recently. But it had said it was working to repay that counterparty, which had not yet exercised its right to liquidate collateral. The SEC filing indicated that JPM "will exercise its rights." The default has "triggered cross-defaults under all of the company's other secured loan agreements," the filing said.