Using Veritas to Construct the "Per…

29-04-2017 Hits:82077 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

Read more

The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:77716 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

Read more

What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:77286 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

Read more

Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:82032 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

Read more

This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:78623 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

Read more

What is the Value Proposition For Verita…

01-04-2017 Hits:80919 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

Read more

This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:47803 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

Read more

Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:79624 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

Read more

Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:79151 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

Read more

The Country's First Newly Elected Lame D…

27-03-2017 Hits:79701 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

Read more

Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:84667 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

Read more

The Transformation of Television in Amer…

21-03-2017 Hits:81623 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

Read more

As I have said previously, instruments written at the top of a bubble will not return to the pre-bubble burst levels for quite some time, if ever. If your company's well being relies on these values returning anytime soon (ex. mortgage bankers/REITs or structured product insurers), you are going to have so serious problems. Thornburg Mortgage appears to be one of the most conservative players in the industry, sort of the anti-Countrywide, yet look at their problems... The market is not mispricing their assets, the market IS the price. You are mispricing your assets if you feel that your CDS, CMBS or RMBS will reverse back to bubble market prices within 7 years or so.

 From Housingwire.com :

Thornburg Mortgage Tanks as Liquidity Concerns Mount

Ultra-prime mortgage lender Thornburg Mortgage Inc. said on Monday that it had failed to meet $270 million in margin calls received since just last week. On Thursday, the company had disclosed in a 10-K filing with the SEC that it had already been subject to $300 million in margin calls on its $2.9 billion portfolio of Alt-A mortgage-backed securities.

Nearly $600 million in margin calls over the past few weeks — and failing to meet the most recent round of $270 million — have put a serious strain on the company’s liquidity, with Bloomberg reporting Monday that at least one analyst has suggested that bankruptcy is possible for the lender. This is pertinent to those who need to mark RMBS assets to market. If or when these assets fire saled, it will daisy chain throughout the system. These assets are at the top of the food chain in terms of relative quality AAA, and will push much under them downward. 

Thornburg said it is working to meet the outstanding margin calls by selling securities or raising additional debt, and characterized the latest liquidity crisis as “strictly the result of continued deterioration of prices of mortgage-backed securities precipitated by difficult market conditions.” 

MarketWatch’s Alistair Barr reported last week that Thornburg is riding the tail of a Valentine’s Day disclosure by UBS AG that it is highly exposed to Alt-A MBS, sparking investor concern that UBS may become a forced seller of Alt-A mortgage securities. That disclosure, sources suggest, is behind most of the current margin calls and forced sales — setting off a potentially dangerous chain reaction for market participants in the RMBS space.

“The current market price of assets has become disconnected from their underlying recoverable value, resulting in increased volatility and imprecise quarter-to-quarter comparisons of asset valuations,” said Larry Goldstone, Thornburg’s president and chief executive officer. If this was truly the case, these assets would be snapped up. The fact of the matter is that no one is very confident on the underlying recoverable values since they are currently in freefall.

“We believe that this latest downturn in the mortgage finance market was brought on by a continued lack of trust and confidence in the broader financial markets and has resulted in a substantial excess of sellers versus buyers of high quality mortgage securities.”

Thornburg’s stock was hammered Monday, losing half of its market value before the morning trading session was complete. The stock had fallen more than 56 percent to $3.89 in heavy selling volume by 12:36pm EST, when this story was published.