Thornburg Mortgage TMA has proposed a new re capitalization scheme. Well I guess I am prejudicing my point of view with the noun, scheme. Please read the article and consult the current balance sheet of TMA, it is on financy.yahoo.com. Now
What will common stockholders get
What will existing preferred holders get (read those first two paragraphs again…)
What is meant by the dilution will make the exisitng stock worthless, whoops, that was a big hint to the first question.
Would you buy this deal?
Should the FED give TMA the same deal they gave BSC?
We will discuss this in class Thursday.
Professor Elam 
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