mREIT Invesco Mortgage Capital (IVR) announced they could not meet a margin call on borrowed funds.
With mREITS they finance the business with repurchase agreements–generally shorter term loans and they use their mortgage portfolio for collateral. If the value of the collateral falls they need to either come up with cash or addition collateral.
The company’s preferred shares tumbled and are trading in the $4’s right now. All dividends are suspended now.
The company press release can be read here.