Roland Cycan

Thornburg's a Huge Bargain After Monday's Crash

TMA said they issued CMO's. Typically that is a sale, selling the future cash flows for a current lump sum. They said it was profitable. Who else would have better knowledge?

As an aside, current market conditions have pointed out a deep flaw in the REIT structure, the need to pay so much of their income as dividends. They can't really accumulate any retained earnings (reserves) for when times turn bad.

When times are good, the model works. When times are bad, they are forced to sell new stock, but when times are bad, the stock price is low.