User 44878

Time to Exempt Mortgage Securities from Mark-to-Market Rules

One of the things driving this is margin calls with assets being dumped at whatever price is bid.

Perhaps it is time to legislate margin calls out of existence.

Thornburg Mortgage, Inc. F1Q08 (Qtr End 03/31/08) Earnings Call Transcript

So why not pay a dividend in the form of a rights issue, allowing each shareholder to buy one more additioanl share at about half of the current price per share? Most woud do it, and TMA would thereby raise additional equity capital without hosing the existing shareholders. It could then pay off some of the onerous debt.