Thanks for your article, Paul.
Thornburg's fatal blow may come as soon as tomorrow, when it is scheduled to pay a Q2 dividend of $0.68/share on its common stock. The dividend payable is approximately $83 million. Thornburg had unrestricted cash on its June 30 balance sheet of just $14.5 million.
Let's hope not, Patrick - but I do share your concern.
Thornburg's one of the best-managed REIT's out there. If they can't make it work, given their market position and the management team, I don't know that anyone can.
It's scary that even well-managed, mostly passive mortgage REITs have such a fragile business model when the liquidity in the credit markets dry up. Makes me wonder how Redwood Trust is faring...
Commenting by HaloScan
