Credit Suisse analyst Moshe Orenbuck has a 12-month target price of 50 cents on the stock and calculates that that is actually a 25% premium to the expected book value. "As a result of the additional shares we now estimate that book value (using principal outstanding) is about 35 cents to 40 cents, compared to our estimate of 60 cents under the initial terms of the note. Common book value would be negative using current market values of the assets." Thornburg has frantically raised capital in attempts to avoid bankruptcy. "These unprecedented market conditions led to an inability to meet resulting margin calls on our borrowed funds, a need to sell assets and seek alternative permanent financing for other assets in our portfolio, and a need to negotiate an agreement with our reverse repurchase and auction swap agreement counterparties to prevent a liquidation of our entire mortgage securities portfolio," Goldstone said in a company statement. Fellow lenders Freddie Mac ( FRE) and Fannie Mae ( FNM) were given the opportunity to issue mortgages over the previous limit of $440,000, allowing the lenders to compete with Thornburg's jumbo loans. On Thursday, Freddie Mac sold $3 billion three-year reference notes on Thursday priced at $99.757 to yield 3.960% over U.S. Treasuries. Commercial real estate lender iStar Financial ( SFI) has also been beaten down, but not to the severity of the residential market. It is still earning money and not reporting huge losses. Impac Mortgage Holdings ( IMH) based out of Irvine, Calif., is down 85% in value for the year, while Annaly Capital Management ( NLY) is up 14% for the year. Annaly is a real estate investment trust and engages in the ownership, management and financing of a portfolio of investment securities, while Impac primarily invests in and holds mortgages that were acquired and originated by the company's mortgage operations.