It's been a good week for Thornburg Mortgage Asset Corp. , which this morning received its second analyst upgrade in 3 days. On Tuesday, UBS lifted the mortgage lender's rating from neutral to buy, and this morning, Deutsche Bank boosted the company from sell to hold. Deutsche Bank cited actions taken by TMA to stabilize its operations amidst the recent market turmoil, as well as improving liquidity. In a note to clients, the broker stated, We believe concerns regarding financing risk and margin calls have been reduced, but not eliminated, and added that Going forward, we expect the company to generate lower origination volume at higher spreads and operate the business with lower leverage and less reliance on short-term financing.
After suffering a major slump over the summer, TMA seems to be on the rebound (thanks in part, no doubt, to all the positive analyst attention). After pressuring the stock lower for nearly 3 months, its 10-day and 20-day moving averages are now on the upswing and could help lift the shares higher. However, with the stock trading around 13.70 a gain of 2.6% so far this morning it has a fair way to climb before it can test resistance from its 10-week moving average, which looms overhead in the 19 region.