Thornburg reported earnings yesterday and here are the results:
Second-quarter profit rose to $412.3 million, or 84 cents per share, from $83.4 million, or 66 cents, a year earlier. A large gain related to a financing transaction offset a $209.6 million write-down of mortgages. Thornburg in June reported a $3.31 billion first-quarter loss. Thornburg said 93.2 percent of its ARM portfolio remains high quality, following a Friday downgrade of $1.1 billion of the loans.
They admitted that market conditions and the status of their preferred stock exchange offer “raise substantial doubt about the company’s ability to continue as a going concern for the foreseeable future.” So far they’ve been on target for the exchange offer. But we won’t know the final status until the offer expires on September 3.