Mortgage Margin What Is A Margin Call And Why Does Failure To Meet Them Cause A Stock To Drop 50%?
What is a margin call and why does failure to meet them cause a stock to drop 50%? - mortgage margin
"Thornburg Mortgage has failed to meet margin calls" and went so far ....
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2 comments:
A margin call is a demand for a loan to repay in full now or raise loans or additional protective measures. This means that Thornburg Mortgage has failed in its loan agreements and in accordance with the provisions of the agreements may be forced to pay bondholders.
I read the press release, hold subprime mortgages, but nobody buys it, and thus the debt and creditors want immediate $ 270 million, plus another 300 million recently requested. Given market conditions, it is unlikely Thornburg in a position to pay its debts, is about writing and my guess is that people expect to seek bankruptcy protection.
The company could meet its financial obligations, and when he learned that investors have sold shares.
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