Thornburg’s Thorny Issue

Thornburg Mortgage (TMA) told us their customers maintain high credit quality with extremely low default rates. So why are they a victim of the credit crunch? Because credit is only part of the problem. The other is the current value of their customers’ collateral. As real estate values decline, almost no mortgages are secure. Prime mortgages can’t be prime without good collateral.

1 comment:

Molly said...

Deborah,

I just wanted to say hello. I just found your blog, and it looks like good info. I am reading America's Bubble Economy at the moment, and it is quite eye opening. I am also learning to trade. I'm paper trading now. Once I have been doing that for a year, I'll start trading for real.

Anyway, hello and thanks for your interesting blog.