No. of Recommendations: 1
Things change quickly with this one. This is from a press release at the Fed's actual website relaesed today 3/11 (this is not from the news agencies),

"...the Federal Reserve will lend up to $200 billion of Treasury securities to primary dealers secured for a term of 28 days (rather than overnight, as in the existing program) by a pledge of other securities, including federal agency debt, federal agency residential-mortgage-backed securities (MBS), and non-agency AAA/Aaa-rated private-label residential MBS...."

and from TMA's most recent 10K restatement,

"...The restatement of the company’s financial statements is due to adverse developments in the mortgage finance and credit markets since August 2007 that have resulted in a significant deterioration of market prices of the company’s mortgage-backed securities. The credit quality of the company’s assets remains outstanding, with 0.44% 60-plus day delinquencies and REO at December 31, 2007 on its loan portfolio, which is well below the 4.23% industry average at September 30, 2007. And, 97% of its mortgage portfolio rated the equivalent of AAA or AA..."

I'm holding my shares. If TMA can solve their problem using fed money and hold on to their mortgages I can be looking at 50cents per share in dividends for the rest of my life. High risk, high reward.
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