[movermike] movermike: Luminent gets two default notices from lenders

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Posted by movermike:
Luminent gets two default notices from lenders
http://www.movermike.com/posts/1186621214.shtml


   Alistair Barr at [1]MarketWatch reports that Luminent (LUM)

     ...got default notices from two of its lenders,

     [...]

     Luminent said the default notices came from two of its "repo
     lenders." These types of lenders offer short-term loans against
     collateral that's usually Treasury bonds or other fixed-income
     securities through repurchase agreements.

   [2]Forbes writes that

     ...lenders have the right to demand repayment if the collateral
     securing the loan dwindles in value. Banks claiming default can
     seize a borrower's assets and auction them off to ensure the debt
     is repaid.

   Yesterday LUM suspended its dividend. Just last week it assured
   investors that the payout was secure.

   In related news, [3]IMPAC Mortgage Holdings Inc. (IMH)
   
   [imh]
   
   said it has made all margin calls to date.

     Despite the significant volatility in the secondary market, Impac
     has negotiated sales of approximately $1 billion of its $1.6
     billion of loans held on financed facilities.

     Impac expects the sale of the loans to satisfy the related current
     borrowing balances with the excess cash proceeds to be credited to
     the company.

   [4]Luminent (LUM) [5]IMPAC Mortgage Holdings Inc. (IMH) [6]Mortgages
   [7]Mover Mike

References

   1. http://www.marketwatch.com/news/story/luminent-mortgage-gets-default-notices/story.aspx?guid=%7BDE21C0D7%2DABA2%2D4F84%2DBAF2%2D49B322CD4A9C%7D&siteid=yhoof
   2. http://www.forbes.com/feeds/ap/2007/08/08/ap4000573.html
   3. http://online.wsj.com/article/SB118658116547491703.html?mod=googlenews_wsj
   4. http://technorati.com/tag/Luminent+(LUM)
   5. http://technorati.com/tag/IMPAC+Mortgage+Holdings+Inc.+(IMH)
   6. http://technorati.com/tag/Mortgages
   7. http://technorati.com/tag/Mover+Mike