Updated from 2:37 p.m. EDT
Financial stocks tiptoed higher with the broad indices Tuesday after a long holiday weekend, and
ranked among the winners.
Shares continued to climb 5% on Friday's reiteration that its $80 million credit-facility drawdown, announced last week, was "not in response to any liquidity issues." Triad stock had taken a tumble on word of the drawdown, even though the insurer included this same explanation in the pertinent regulatory filing.
Triad elaborated, late in the trading day Friday, that it had $26.7 million cash on hand as of June 30, as well as a "very liquid" $618 million portfolio of municipal and corporate bonds. Shares leapt to close Friday's session higher, and today rose another 83 cents to close at $17.56.
, meanwhile, added 3.7% to close at $12.21 after saying it
raised $1.4 billion
in a collateralized debt transaction, the possibility of which was first announced on Thursday. The Santa Fe, N.M., mortgage lender says proceeds will go to reducing borrowings under its adjustable-rate mortgage loan-warehouse financing lines by roughly $1.37 billion.
Friedman Billings vaulted Thornburg's rating to outperform from underperform, and Credit Suisse upgraded insurance company
(AFG - Get Report)
from neutral to outperform. The analyst cited American's overly discounted stock price vs. its peers as a basis for the rating change.
Shares of the Cincinnati insurer gained 4.2% to $29.38, lending support to the
Financial Sector Index, which also benefited from Thornburg's recovery. The tracker ticked up about 104 points, or 1.2%, to 9115.60. The KBW Bank Index was up 0.8% to 106.84.