Friedman Billings Downgrades Legg Mason (LM) to Underperform, On Cash Concerns

Friedman Billings downgrades Legg Mason Inc. (NYSE: LM) from Market Perform to Underperform and lowered their price target from $18 to $11, saying the company faces rising liquidity concerns.

The firm said they are increasingly concerned about Legg Mason's $3.9 billion of exposure to SIVs. The firm said Legg may have to put up additional funds to protect the SIVs, which could reduce unrestricted cash and could trip some of the company's debt covenants.

Legg Mason, Inc., through its subsidiaries, provides investment management and related financial services to institutional and individual clients, company-sponsored mutual funds, and other investment vehicles.

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