Looks like ex-Cerberus exec John Stomber’s Carlyle Capital has now run afoul a passel of margins calls and default notices, according to a news release it dropped very, very early this morning, noting that while its lenders were liquidating some of its mortgage securities the “additional margin calls and increased collateral requirements could quickly deplete its liquidity and impair its capital.”

Carlyle Capital Corp. Friday said lenders were liquidating some of its mortgage securities, painting an even bleaker picture of its already perilous situation.

In a short news release issued early Friday, the fund, which is managed by a unit of Washington, D.C., private-equity firm Carlyle Group, said it received "substantial additional margin calls and additional default notices from its lenders" and that "these additional margin calls and increased collateral requirements could quickly deplete its liquidity and impair its capital."

On Thursday Carlyle Capital roiled the financial markets when it said it failed to meet margin calls on its $21.7 billion portfolio. The fund said it had received a notice of default from one of its lenders that helps finance its portfolio of highly rated mortgage securities. Shares in the fund, which is listed in Amsterdam, slid about 60% Thursday.

Trade in its shares was suspended Friday in anticipation of a press release from the fund, Dutch financial-markets regulator AFM said.

In its latest announcement, the fund said that lenders have informed them that there would be "significant" additional margin calls and increased collateral requirements "well in excess of the margin calls it received Wednesday."

It also explained that the lenders who had issued default notices were liquidating some of Carlyle Capital's mortgage securities and that "it is possible" that the lenders may sell off additional securities.

"Management is closely monitoring the situation and considering all available options for the company," the release said.

The Carlyle fund is highly leveraged, meaning they have large borrowings relative to the money entrusted to them. Carlyle Capital managed only $670 million in client money, but used borrowing to boost its portfolio of bonds to $21.7 billion, meaning it was about 32 times leveraged.

The market for U.S. government agency AAA-rated residential mortgage-backed securities backed by Fannie and Freddie has deteriorated rapidly in recent days. Fannie and Freddie are perceived as having the backing of the U.S. government, so they're usually seen as a safe haven.

Continue reading on The Wall Street Journal

Next article » Bear Scare To Drive Off SWFs?

Previous article « Deutsche Telekom Splashes Out $4 Billion For Hellenic