March 25, 2020
Atlanta-based Invesco Mortgage Capital Inc. reported on Tuesday that in recent weeks, due to the turmoil in the financial markets resulting from the COVID-19 global pandemic, the company and its subsidiaries received an unusually high number of margin calls from financing counterparties. The firm, which invests in, finances, and manages residential and commercial mortgage-backed securities, saw its share price drop more than 50% on Tuesday, closing at $2.52.
The company says it had timely met all margin calls received through Friday, March 20. However, on Monday afternoon, March 23, the company notified its financing counterparties that it was not in a position to fund the margin calls that it received on March 23, and that it did not expect to be in a position to fund the anticipated volume of future margin calls under its financing arrangements in the near term.
The company says it is having discussions with financing counterparties about entering into forbearance agreements. Invesco Mortgage Capital Inc. is externally managed and advised by Invesco Advisers, Inc., a registered investment advisor and an indirect, wholly-owned subsidiary of Invesco Ltd.
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