No. of Recommendations: 0
Thanks, I'm aware of the pecking order in bankruptcy.

My play was that they were going to be able to borrow from the Fed using their mortgages as collateral and thus not require anyone to come to the rescue. This would have allowed them to hold on to all the mortgages and eventually (a year from now) resume 50 cent plus dividends.

My play didn't work out. Unfortunately the Fed press release specifically says agency back (e.g. freddie and fannie) and TMA's mortgages are not agency backed. Thus TMA will have to sell enough of their mortgages at discount prices to raise the necessary equity (if possible) or find a sugar daddy to buy them out (greatly diluting shares) or go BK. All three options are much worse for shareholders than the one I was hoping for.
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