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| US mortgage lender sells assets | US mortgage lender sells assets |
| (about 8 hours later) | |
| US mortgage lender Thornburg has sold $20.5bn (£10.3bn) of assets and reduced its borrowings amid a tough market for home loans. | US mortgage lender Thornburg has sold $20.5bn (£10.3bn) of assets and reduced its borrowings amid a tough market for home loans. |
| The firm said the move would enable it to meet its financing obligations and continue mortgage lending operations. | The firm said the move would enable it to meet its financing obligations and continue mortgage lending operations. |
| Thornburg's shares ended 10.2% lower after the firm said it had written down the value of some home loans. | |
| The US mortgage sector has been hit by defaults on sub-prime loans as higher interest rates have hit consumers. | The US mortgage sector has been hit by defaults on sub-prime loans as higher interest rates have hit consumers. |
| The problems from the US sub-prime sector have rippled through the world's stock markets in the past few weeks, leading to big share sell-offs. | The problems from the US sub-prime sector have rippled through the world's stock markets in the past few weeks, leading to big share sell-offs. |
| "Investors' confidence in the mortgage financing space is not doing well," said Larry Goldstone, Thornburg's chief operating officer, in an interview with CNBC television. | "Investors' confidence in the mortgage financing space is not doing well," said Larry Goldstone, Thornburg's chief operating officer, in an interview with CNBC television. |
| Last week, Countrywide, the largest mortgage lender in the US, said it had borrowed $11.5bn to continue making home loans, and a report in the Wall Street Journal on Monday said the firm had begun laying off staff. | Last week, Countrywide, the largest mortgage lender in the US, said it had borrowed $11.5bn to continue making home loans, and a report in the Wall Street Journal on Monday said the firm had begun laying off staff. |
| Other mortgage lenders in the US, especially those in the sub-prime market, have been forced to refinance their debts. | Other mortgage lenders in the US, especially those in the sub-prime market, have been forced to refinance their debts. |
| On Monday Luminent Capital, a West Coast-based real estate investment trust, said it was facing losses of $2.3bn on defaulted mortgage obligations, and that the market in secondary mortgage debt had "seized up." | On Monday Luminent Capital, a West Coast-based real estate investment trust, said it was facing losses of $2.3bn on defaulted mortgage obligations, and that the market in secondary mortgage debt had "seized up." |