$14 Billion Commodity Broker Facing Crushing Margin Calls After Mortgage Hedges Go Terribly Wrong $14 Billion Commodity Broker Facing Crushing Margin Calls After Mortgage Hedges Go Terribly Wrong We warned last week that, despite The Fed's unlimited largesse, there is trouble brewing in the mortgage markets that has an ugly similarity to what sparked the last crisis in 2007. For a sense of the decoupling, here is the spread between Agency MBS (FNMA) and 10Y TSY yields… At that time, WSJ's Greg Zuckerman reports that the AG Mortgage Investment Trust, a real-estate investment trust operated by New York hedge fund Angelo, Gordon Co., is among those feeling pressure, the company said, and, in the latest sign of turmoil in crucial areas of the credit markets, is examining a possible asset sale. “In recent weeks, due to the turmoil in the financial markets resulting from the global pandemic of the Covid-19 virus, the company and its subsidiaries have received an unusually high number of margin calls from financing counterparties,” AG Mortgage said Monday morning. Well, they are not alone.