Tuesday, August 14, 2007

Mortgage Thornburg To Delay Dividend : Shares Fall

Thornburg Mortgage will delay paying its quarterly dividend, scheduled for Wednesday, after plummeting mortgage security prices drastically reduced the value of its holdings.

After trading closed Tuesday Thornburg announced that it will push back its second-quarter dividend payment of 68 cents. The dividend will now be paid on September 17. Payment was originally scheduled for August 15.

Thornburg said the delay comes in response to significant disruptions in the mortgage market that have caused a "sudden and unprecedented" decline in the market prices of the company's AAA-rated mortgage securities. Thornburg's Chief Executive Larry Goldstone said that as of Tuesday the company's book value was $14.28 per share, down from $19.38 per share on June 30.

Reddit Del.icio.us Technorati Yahoo Spurl Furl Simpy

No comments: