Interpreting the atmospheric conditions of Wall Street and the world.
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.