Thornburg Mortgage's president told CNBC Wednesday that the residential mortgage lender is still having having problems raising financing but has begun to "turn the corner" and hopefully "by next week it will be pretty much back to business as usual."
"There are a variety of strategies that we've been working very hard on the last couple of weeks to stabilize our liquidity position," Larry Goldstone said in an exclusive interview on "Squawk on the Street." "I think by next week we're going to be on the other side of this."
On Tuesday, Thornburg's stock plunged 46% after it reported liquidity problems. In an interview late Tuesday on "Kudlow & Company," Goldstone said he was having difficulty with financing but had "no intention of filing Chapter 11."
Thornburg's stock soared as much as 49% on Wednesday.
Like many rivals, Thornburg has struggled because investors, wary of rising defaults, have refused to buy many kinds of loans. Among them are loans considered high quality, including Thornburg's specialty, prime "jumbo" loans--those above $417,000.
Many bankers are also refusing to extend credit to mortgage lenders. Nonetheless, Moody's said Thornburg has "superior asset quality."