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Invesco Mortgage Capital Warns It Can’t Fund Margin Calls (2)

March 24, 2020, 12:49 PM

Invesco Mortgage Capital Inc., a real estate investment trust that invests in mortgage-backed securities, is no longer able to fund margin calls.

The company said in a statement Tuesday it couldn’t meet calls received the previous day and probably won’t meet additional expected calls in the near term. It’s negotiating forbearance agreements with its financing counterparties, according to the statement. The news sent Invesco’s shares plummeting in early trading.

The coronavirus is wreaking havoc in the $16 trillion U.S. mortgage market, which is suffering its worst turmoil in more than a decade. Firms that invest in mortgage-backed securities face ...