Thornburg Mortgage has met a $300 million set of margin calls related to deteriorating mortgage-backed securities market conditions, but was still working to meet about $270 million more as of deadline time Monday. The company said it was in default with one reverse-repurchase counterparty involved in the second set of margin calls but that it was working to repay that counterparty, which had not yet exercised its right to liquidate collateral. The company said collateral liquidations could have a material effect on its finances if they occur, and stressed that the repayment difficulties are linked to market conditions rather than credit quality. The company's stock was trading at about $4.00 per share late Monday morning, a drop of more than 50% from its previous close of $8.90 per share, according to Yahoo Finance.
