Financial stocks took another beating Thursday, as Carlyle Capital and Thornburg Mortgage(TMA Quote) failed to meet margin calls and received default notices due to the plummeting value of mortgage-related securities.
Carlyle, a fixed-income investment company managed by an affiliate of private-equity firm the Carlyle Group, said it failed to meet four of seven margin calls and has already received one notice of default and expects at least one more. Thornburg said it failed to meet a $28 million margin call from JPMorgan Chase(JPM Quote), triggering a series of defaults on various lending agreements and increasing the probability of the company's demise. Thornburg shares were off 51.8% to $1.64.
Real estate investment trusts sold off on the news, as investors feared the margin calls suggested investors thought little of even highly-rated mortgage-backed securities issued by government-sponsored mortgage giants Fannie Mae(FNM Quote) and Freddie Mac (FRE Quote). New York-based Annaly Capital(NLY Quote) shed 16.5% to $16.10 on that headline and news that heightened options trading indicated worries about the company's future. ...
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