2 Comments

    • Don't Count on a Fast Turnaround for Thornburg Mortgage [view article]
      PWCApr 25 11:17 AMThe only reason for the destruction of shareholder value was technicalities in GAPP that require TMA to write down their assets to reflect their "market value." The problem with this is the methodology TMA is required use to revalue its assets is based on the trading value of similar assets in the market. This is insane! There is no market right now for TMA's assets on the open market. That does not mean that the assets are worthless. THE TRUE VALUE OF TMA'S MORTGAGE HOLDINGS WAS THE PRESENT VALUE OF ALL FUTURE EXPECTED NET CASHFLOWS. For the high quality loans in TMA's portfolio, this value has changed very little (if at all). However, the GAPP rules required TMA to reduce the carrying value of these assets to artificially low levels. These artificiall values are what triggered the margin calls and sell off and subsequent destruction of shareholder value. B.S. accounting rules (intended to make businesses stronger) destroyed TMA. Apr 25 11:21 AM
    • Don't Count on a Fast Turnaround for Thornburg Mortgage [view article]
      The only reason for the destruction of shareholder value was technicalities in GAPP that require TMA to write down their assets to reflect their "market value." The problem with this is the methodology TMA is required use to revalue its assets is based on the trading value of similar assets in the market. This is insane! There is no market right now for TMA's assets on the open market. That does not mean that the assets are worthless. THE TRUE VALUE OF TMA'S MORTGAGE HOLDINGS WAS THE PRESENT VALUE OF ALL FUTURE EXPECTED NET CASHFLOWS. For the high quality loans in TMA's portfolio, this value has changed very little (if at all). However, the GAPP rules required TMA to reduce the carrying value of these assets to artificially low levels. These artificiall values are what triggered the margin calls and sell off and subsequent destruction of shareholder value. B.S. accounting rules (intended to make businesses stronger) destroyed TMA. Apr 25 11:17 AM
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