(Bloomberg) -- Bear Stearns Cos., the second-biggest
U.S. underwriter of mortgage bonds, is liquidating holdings from
one of its hedge funds after making money-losing bets on subprime
home loans, three people familiar with the situation said.
Bear Stearns is seeking bids today from prospective buyers
for about $3.8 billion of mortgage bonds, said the people, who
declined to be identified because the plan isn't public. The 10-
month-old Bear Stearns High-Grade Structured Credit Strategies
Enhanced Leverage Fund, which is down about 20 percent this year,
had about $600 million of investors' money and borrowed to
increase its buying power, one of the people said.
Read more at Bloomberg Currencies News
U.S. underwriter of mortgage bonds, is liquidating holdings from
one of its hedge funds after making money-losing bets on subprime
home loans, three people familiar with the situation said.
Bear Stearns is seeking bids today from prospective buyers
for about $3.8 billion of mortgage bonds, said the people, who
declined to be identified because the plan isn't public. The 10-
month-old Bear Stearns High-Grade Structured Credit Strategies
Enhanced Leverage Fund, which is down about 20 percent this year,
had about $600 million of investors' money and borrowed to
increase its buying power, one of the people said.
Read more at Bloomberg Currencies News
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