Jack Yetiv

Don't Throw Thornburg Mortgage into the Briarpatch Yet

I completely agree. But in addition to equity participation as mentioned in the article above, additional refinancing is quite likely as well. Note that at 3:21 PM yesterday (3-3-08), TMA did in fact announce a $1 billion refinance. Although the press release was short, it sure sounded like TMA obtained more than enough cash to meet yesterday's margin call--and maybe one or two more of the same size.

Everyone should note that TMA Chairman Mr. Thornburg bought 1 million shares of TMA a couple of months back at around $10/share. Other insiders also own a substantial amount of TMA stock. They will do everything in their power to make sure TMA survives.

Finally, and most importantly, unlike the subprime lenders who have gone out of business, TMA's underlying business is a very good one, with prime and superprime borrowers and a default rate of under 0.5%.

I think that at under $4, TMA offers a wonderful risk-reward opportunity.

Jack Yetiv